PEP Holders and Directorship Rules in Singapore

Understanding the rules around directorships is important for any Singapore small business—especially when appointing foreigners as directors. If you’re dealing with a Personalised Employment Pass (PEP) holder, there are specific guidelines to follow.

Let’s break down what you need to know about primary and secondary directorships in Singapore, and how proper support from accounting and corpsec services can make a big difference.

What Is a Personalised Employment Pass (PEP)?

The PEP is a type of work pass issued by Singapore’s Ministry of Manpower (MOM) to high-earning professionals. It differs from other passes in that it isn’t tied to a specific employer and allows greater job mobility.

Key features:

• Valid for 3 years

• Designed for existing Employment Pass holders and overseas professionals with a strong track record

• Minimum fixed monthly salary: SGD 22,500

• Cannot be renewed

Directorship Rules for PEP Holders

Can a PEP Holder Be a Company Director?

Yes—PEP holders can be appointed as directors of a company without needing a Letter of Consent (LOC), as long as they are taking up the primary directorship role and not working for another employer at the same time.

Primary vs. Secondary Directorships

Understanding the difference is essential:

• Primary Directorship:
  This is the main role the PEP holder is taking up. In this case, no LOC is needed.

• Secondary Directorship:
  If a PEP holder already holds one directorship and wants to take on another (in a different company), this is considered a secondary directorship. For this, an LOC must be obtained from MOM.

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Why Compliance Matters for Small Businesses

Improperly appointing a foreign director can lead to serious compliance issues. As a Singapore small business, understanding MOM regulations and ensuring the right documentation is in place is crucial. Errors in appointment or role classification may lead to delays, fines, or even business disruption.

How Accounting and Corpsec Services Can Help

Professional accounting and corpsec services play a key role in supporting your business through these regulatory processes:

• Proper appointment of directors
  Ensuring correct classification between primary and secondary directorships, and helping with LOC applications when needed.

• Regulatory filing and documentation
  From board resolutions to annual returns, corpsec experts ensure you stay compliant with ACRA and MOM rules.

• Payroll and tax matters
  If the PEP holder receives director’s fees, professional accounting services ensure accurate reporting and timely submission to IRAS.

• Advisory on best practices
  Get guidance on structuring your company to meet both operational needs and regulatory standards.

Summary

PEP holders can be appointed as directors in Singapore, but the rules differ based on whether it’s a primary or secondary directorship. For primary roles, no LOC is needed—but if the PEP holder wants to serve as a director in another company, a Letter of Consent is required. For Singapore small businesses, staying compliant with these regulations is key to avoiding penalties. That’s where expert support from accounting and corpsec services becomes invaluable—offering clarity, accuracy, and peace of mind.

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Don’t let regulatory complexities impede your business growth. Counto’s elite corporate secretarial services are your strategic advantage for flawless compliance and governance in Singapore’s competitive business landscape. To learn more, speak to us directly on our chatbot, email [email protected], or use our  contact form to get started.