Understanding Primary and Secondary Directorships in Singapore

In Singapore’s ever-evolving business landscape, knowing the difference between primary and secondary directorships is essential—especially for small business owners navigating compliance and regulatory obligations. Whether you’re a PEP holder or someone planning to set up a company, understanding how corporate secretary services help ensure proper director appointments can keep your business running smoothly and legally.

1. What is a Primary Directorship?

A primary directorship refers to the main directorship role held by an individual in a Singapore-registered company. It is typically the first company in which the individual is appointed as a director and, in many cases, the only directorship that may not require a Letter of Consent (LOC) depending on the individual’s visa type.

Key points:

• It is usually the first company where an individual is appointed as a director.
• For PEP holders (Personalised Employment Pass holders), this role does not require an LOC.
• This directorship may align with the individual’s main employment or business interest in Singapore.

2. What is a Secondary Directorship?

A secondary directorship is any additional directorship role held beyond the primary one. These appointments may raise regulatory or immigration-related considerations—particularly for foreign individuals and pass holders.

Important considerations:

• PEP holders must apply for a Letter of Consent (LOC) from the Ministry of Manpower (MOM) for any secondary directorship.
• Failure to obtain approval may result in non-compliance with MOM regulations.
• Businesses should consult with a corporate secretary to ensure all required steps are followed.

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3. Why Does This Distinction Matter?

Understanding the difference between the two types of directorship is important for both compliance and business continuity.

Here’s why it matters:

• Regulatory compliance: Making director appointments without the required approvals can result in penalties.
• Immigration rules: The MOM views directorships as forms of employment; thus, different passes and approvals apply.
• Governance: Knowing who holds what role—and whether it’s compliant—helps maintain sound corporate governance.

4. What Should Singapore Small Businesses Do?

If you’re running a Singapore small business and are thinking of appointing a foreign individual or PEP holder as a director, here’s what you should do:

Key steps:

• Check the visa type of the proposed director to determine LOC requirements.
• Clarify whether the role is primary or secondary to know what approvals are necessary.
• Engage professional corporate secretary services to guide you through the process, handle submissions, and ensure proper record-keeping with ACRA and MOM.

Summary

For Singapore small business owners, especially those working with foreign directors or PEP holders, understanding the distinction between primary and secondary directorships is crucial. These roles come with different requirements, especially around the need for an LOC from MOM. Engaging experienced corporate secretary services can help ensure you’re making the right moves while staying compliant with Singapore’s business regulations.

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