Who is LOC for?

DP holders who wish to operate a business in Singapore must apply for an LOC.

To be eligible, an applicant should be one of the following types of business owners:

  • The sole proprietor of an ACRA-registered business.
  • A partner of an ACRA-registered business.
  • A company director with at least 30% shareholding in an ACRA-registered business.

To be eligible for a renewal of LOC, you will need to hire at least one Singaporean/PR who earns at least the prevailing Local Qualifying Salary ($1400/month) and received CPF contributions for at least 3 months.

Steps to applying LOC

  1. Successful registration of Sole Proprietorship or Pte Ltd company with ACRA to set up a business (1-3 working days)
  2. Request to apply LOC (pre-approval) (1 week)
  3. Request to apply LOC
  4. LOC and bank account application (4-8 weeks)
  5. Can start operating business after obtaining LOC until due for renewal

 

Individual and Corporate Tax Rules

Costs (Sole Prop vs Pte Ltd)

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