The Letter of Consent or LOC is a must-have legal document for individuals who want to join or set up an ACRA-registered business in Singapore. This article discusses various facets of LOC application in Singapore to help individuals/corporations set up their businesses in the country.
What is a Letter Of Consent (LOC)?
The Letter of Consent (LOC) in Singapore is a legal document allowing eligible pass holders to work in the country. Only Dependant Pass (DP) holders who want to operate a business in Singapore, LTVP (Long-Term Visit Pass), and LTVP+ holders are eligible to apply for LOC.
The Ministry of Manpower (MOM) is mandated to oversee and regulate the issuance and renewal of the Letter of Consent as per the guidelines of the Employment of Foreign Manpower Act. Employers and eligible pass holders must be cognizant of key facts regarding the LOC to ensure compliance with the country’s relevant legislation and regulations.
Eligibility Requirements For a Letter of Consent in Singapore
Eligibility for Dependant Pass Holders Who Wish to Operate a Business in Singapore
- Must be the sole proprietor of an ACRA-registered business, or
- A partner of an ACRA-registered business, or
- A company director with at least 30% shareholding in an ACRA-registered business.
Eligibility for LTVP/LTVP+ holders
- Must be married to a Singaporean or Singapore Permanent Resident, or
- An unmarried child (under 21 years old) of a Singaporean or PR.
LOC Application Via MOM’s Online Portal
The Ministry of Manpower (MOM) plays a crucial role in applying and processing a Letter of Consent or LOC in Singapore. Individuals can rely on their online portal to apply and check the status of their applications.
When applying for a Letter of Consent (LOC), it is important to submit the necessary documents to the Ministry of Manpower (MOM) accurately to avoid any delays in the application process. This includes:
- A filled-out LOC application online form
- Personal information
- Additional documents for specific occupations such as educational qualifications, professional experience, or certifications
The online portal provides regular updates on the application’s progress, whether it is still under review, or if any additional documents are required. To ensure the smooth processing and approval of their LOC application, applicants must promptly address any requests from MOM.
LOC Application Timeline
The processing time for the LOC applications usually varies, though it typically takes up to three to four weeks from the application date. Additional documents, like a copy of the applicant’s employment contract or a letter of support from the Singapore company, may be required for specific industries.
Moreover, the employer’s reputation and compliance with Singaporean law of employment are important factors considered by the Ministry of Manpower in the determination process.
How to Check LOC Application Status?
The Ministry of Manpower’s (MOM) online portal provides convenient access to its platform for individuals to track their application progress. By logging in using their SingPass or other applicable credentials, applicants can easily navigate the website to check the LOC application status in Singapore.
Factors That May Affect LOC Singapore Application Outcomes
The Ministry of Manpower considers some key factors, including the applicant’s age, salary, citizenship, qualifications, work experience, and skills for LOC application.
- Age is a significant factor, and younger applicants are given more preference for their potential to make long-term contributions to the Singaporean workforce.
- A competitive salary, relevant qualifications, and work experience can also enhance the chances of obtaining an LOC.
- Specialised skills that are in demand in Singapore can further strengthen the application.
- The local talent and the Singaporean company’s economic viability, including its financial stability and growth prospects, also influence the approval of the LOC application.
What Are The Benefits Of Pre-Approved Letter Of Consent (PLOC)?
The Pre-Approved Letter of Consent, or PLOC, offers several benefits for individuals looking to work in Singapore compared to the traditional Letter of Consent. One of its key advantages is that it does not require a confirmed job offer before applying for it.
This provides LTVP pass holders with added flexibility when searching for employment in the country, as they can obtain the PLOC before actively seeking jobs.
LTVP holders can also apply for the PLOC alongside their LTVP. It will eliminate the need for multiple applications and allow for a smoother transition to working in Singapore.
Renewal of LOC
The renewal is free and most applications are processed within three weeks.
Prerequisites: To be eligible for a renewal, you must also hire at least one Singaporean or Permanent Resident (PR) who earns at least the prevailing Local Qualifying Salary (LQS) and receives CPF contributions for at least 3 months.
Time for Renewal: The LOC can be renewed in conjunction with your Dependant’s Pass renewal. It is recommended to begin the renewal process up to six months before the expiration of your LOC.
Prerequisites: Ensure that the LTVP/LTVP+ is valid for a minimum of three months before initiating the renewal process. The applicant must also have a job offer with a Singapore employer..
Cancelling a Letter Of Consent
It is suggested to initiate the process of cancelling within one week following the inactivity of the business. However, there are a few important steps to follow to cancel a Letter of Consent (LOC) in Singapore.
- Firstly, the employer needs to resolve any outstanding employment issues with the LOC holder.
- Next, the employing company or appointed employment agent should seek tax clearance from the Inland Revenue Authority of Singapore (IRAS).
- Once these steps are completed, the employer or licensed employment agent can submit an LOC cancellation request to MOM.
The request must include the LOC holder’s written consent. The request should be submitted through Singapore’s Ministry online portal.
FAQs About LOC
- When choosing between an EP and an LOC, consider the following aspects:
An EP operates independently, while a LOC is dependent on the applicant's Dependant's Pass (DP), Long-Term Visit Pass (LTVP), or LTVP+.
LOC applications are not bound by a minimum salary criterion; on the contrary, an EP necessitates a base monthly salary of S$4,500.
- A Letter of Consent can only be pursued if the company is already established in Singapore. Pre-incorporation applications are not permissible.
- Applicants have the choice to apply online or through a paper-based process. While online submissions are generally more expedient and straightforward, manual submissions are equally valid. The expected processing durations are:
Outcomes for online LOC submissions are typically available within 7 to 14 working days.
For paper submissions, the processing period spans around 4 to 6 weeks.
- A Letter of Consent may not always be granted. The Ministry of Manpower (MOM) scrutinizes each application, taking into account the credentials of both the applicant and the sponsoring company.
Should an application be denied, it is advisable to consult with MOM to understand the reasons for rejection. An appeal can then be lodged, addressing the concerns highlighted by the authorities. Note that the review process for appeals by MOM typically takes around three weeks.
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