Short answer: Generally no. An Employment Pass (EP) is valid only for the employer named on it, and MOM says work pass holders must not take on additional jobs or earn additional income in Singapore. Owning shares is allowed. A second directorship needs a Letter of Consent from MOM, and running your own business needs a different pass.
Can an EP holder work for another company, freelance or run a side business? The answer turns on one rule: your EP covers one job with one employer. This guide sets out what the Ministry of Manpower (MOM) permits in each common scenario, what the Employment of Foreign Manpower Act 1990 (EFMA) says, and what a breach costs you and the company that engages you.
Key facts at a glance
- A work pass is valid only for the employer and the type of employment specified in it (EFMA section 12(1)).
- MOM: all work pass holders must only work for their designated employer and must not take on additional jobs or engage in activities to earn additional income in Singapore.
- EP holders may own shares in a Singapore-registered company, but acting as a director of another company needs a Letter of Consent (LOC) under regulation 11 of the Employment of Foreign Manpower (Work Passes) Regulations 2012.
- MOM generally grants a secondary directorship LOC only where the two companies share a common corporate shareholder; MOM states it takes within 5 weeks.
- Employing a foreigner without a valid work pass: fine of S$5,000 to S$30,000, up to 12 months’ jail, or both, on a first conviction (EFMA section 5(6)).
- A foreign employee working for an employer without a valid work pass faces a fine of up to S$20,000, up to 2 years’ jail, or both (EFMA section 5(7)), and MOM can revoke the pass and bar future applications (section 7(5)).
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
Can an EP holder work for another company in Singapore?
No, not while staying on the same pass. Section 12(1) of the EFMA makes a work pass valid only for the employer and foreign employee specified in it, and for the occupation or type of employment specified or submitted to MOM.
MOM’s general FAQ says all work pass holders must only work for their designated employer and must not take on additional jobs or engage in activities to earn additional income in Singapore. That covers second jobs, part-time shifts and paid consulting.
To move to a different employer, the new employer applies for a new EP for you. MOM says the existing EP need not be cancelled first and is not cancelled automatically when the new one is approved, so your current employer has a notice period. It is a switch, not two jobs in parallel. For the mechanics of a job change, see our guide to switching jobs as an EP holder.
What can an EP holder do on the side? Scenario by scenario
The test is whether you are doing work in Singapore outside the job your EP was issued for.
| Scenario | Allowed on your current EP? | What MOM requires |
|---|---|---|
| Second job with another Singapore employer (full-time or part-time) | No | The other employer would need its own work pass for you, which in practice means changing jobs |
| Freelance or gig work for clients in Singapore | No | Not permitted on an EP; MOM treats it as an additional job or income-earning activity |
| Owning shares in a Singapore company as a passive investor | Yes | Nothing; MOM confirms EP holders may own shares |
| Director of a company related to your employer by corporate shareholding | Yes, with approval | Letter of Consent for secondary directorship before you act as director |
| Director of an unrelated company | Only if approved | LOC assessed by the sector government agency; granted only if that agency supports it |
| Starting and running your own company | Owning it, yes; working in it, no | A new EP sponsored by that company, an EntrePass, or another pass that allows it (for example ONE Pass) |
| Remote second job for an overseas employer while living in Singapore | No | MOM’s rule against additional jobs and income in Singapore applies; work passes are for working for Singapore-based companies |
| Unpaid volunteering for a charitable purpose | Yes | MOM says no LOC is needed if no payment is involved and the activity is for a charitable purpose |
Can an EP holder do freelancing or work part time?
No. Freelancing and part-time work are additional jobs, and MOM does not allow EP holders to take them on.
The EFMA definitions are wide. To “employ” someone means to engage or use their services for any work, “whether under a contract of service or otherwise, and with or without salary”. So calling yourself a contractor or consultant does not take the work outside the Act. A foreigner who is not employed under a contract of service but engages in a trade, profession or “any other activity in Singapore for the purpose of gain” is a “self-employed foreigner”, and section 10 requires a valid work pass for that too. An EP is issued for employment with your named employer, not for self-employment.
In practice this rules out paid tutoring, platform gigs, selling your own services and paid advisory work done in Singapore. If in doubt, ask MOM before you start.
Can an EP holder own shares or invest in a side business?
Yes. MOM’s FAQ states that an Employment Pass holder is allowed to own shares in a Singapore-registered company.
The line is between owning and working. You can hold shares in a friend’s start-up or a company you set up, but on your EP you cannot manage it, serve its customers, or act as its director without MOM’s consent. Our article on whether a work pass holder can own shares in a Singapore company compares the rules for each pass. MOM says S Pass and Work Permit holders may not own or manage any business in Singapore.
Can an EP holder be a director of another company?
Only with a Letter of Consent from MOM. MOM’s FAQ answers “yes, but only if the EP holder has obtained a Letter of Consent (LOC)”, because directorship duties under the Companies Act are treated as work.
This LOC is issued under regulation 11 of the Work Passes Regulations and is separate from the LOC some dependants use to work. MOM generally grants it where the second company is related by corporate shareholding to your employer, such as a holding company, subsidiary or fellow subsidiary. The relationship must appear in ACRA records, and the directorship must relate to your primary job.
Two points catch people out:
- The common shareholder must be a company. If the two companies are linked only because you personally own shares in both, MOM says you are not eligible for the LOC.
- For an unrelated company, MOM relies on the sector government agency that regulates or promotes that industry, and grants the LOC only if the agency supports it. MOM notes that employees of MAS-licensed fund managers may take directorships of their investment vehicles, as MAS supports this.
The process runs as follows:
- The company that wants to appoint you (the secondary company) confirms that your employer has no objection to the directorship.
- The secondary company applies to MOM for the LOC, with the appointment letter and an organisation chart showing its relationship to your employer.
- MOM assesses the application; its stated processing time is within 5 weeks.
- If approved, the company lodges your appointment as director with ACRA.
- The LOC lasts until your current EP expires or is cancelled. After your EP is renewed, a new LOC must be applied for.
If you are already a director in ACRA records, MOM says you need the LOC before carrying out directorship duties, and must resign if it is refused. See our article on how MOM treats directors who are also work pass holders.
Can an EP holder start their own company?
You can incorporate a company and own its shares, but you cannot work in it on your current EP. To run it yourself you need a pass that covers that work.
The secondary directorship LOC rarely helps, as your new company will not usually share a corporate shareholder with your employer. The usual routes are:
- New EP sponsored by your company. The company applies for an EP for you as its employee. This means leaving your current job, and the usual EP criteria, including COMPASS, apply.
- EntrePass. MOM describes it as allowing eligible foreign entrepreneurs to start and operate a business in Singapore that is venture-backed or possesses innovative technologies. See our EntrePass guide.
- ONE Pass. If you qualify for the Overseas Networks & Expertise Pass, MOM lists the flexibility to concurrently start, operate and work for multiple companies at any one time, subject to your employment contract terms.
Our article on incorporating a Singapore company while on an Employment Pass covers the common traps.
Can an EP holder work remotely for an overseas employer while in Singapore?
Not as a second job. MOM’s rule that work pass holders must not take on additional jobs or earn additional income in Singapore applies wherever the paying employer is based, because the work is being done here.
MOM also says work passes are for foreigners to work for Singapore-based companies, and that Employers of Record applying for passes for foreigners based here while working for overseas companies would be committing an offence. An overseas company that wants you working from Singapore generally needs a local entity employing you on a regular work pass. Group tasks your own EP employer assigns as part of your role are a different matter.
What happens if an EP holder breaches the rules?
Both sides are exposed. The person or company engaging you without a valid work pass commits an offence, you commit an offence by working for them, and MOM can revoke your EP and bar you from future passes.
| Who | Breach | Maximum penalty (EFMA) |
|---|---|---|
| The company or person engaging you | Employing a foreign employee without a valid work pass (s 5(1)) | First conviction: fine of S$5,000 to S$30,000, up to 12 months’ jail, or both. Repeat: for an individual, S$10,000 to S$30,000 fine and 1 to 12 months’ jail; otherwise S$20,000 to S$60,000 fine (s 5(6)) |
| You, the EP holder | Being in the employment of an employer without a valid work pass (s 5(2)) | Fine up to S$20,000, jail up to 2 years, or both (s 5(7)) |
| You, if self-employed | Acting as a self-employed foreigner without a valid work pass (s 10(1)) | Fine up to S$20,000, jail up to 2 years, or both; repeat offenders face mandatory jail of 1 month to 2 years (s 10(2)) |
| An employer | Employing a foreign employee otherwise than in accordance with the pass conditions (s 5(3)) | Fine up to S$10,000 (s 5(8)) |
Separately, section 7(5) lets the Controller of Work Passes revoke or suspend a work pass and debar a person from work passes for a fixed period. Your employer must also inform MOM if it becomes aware that you have contravened your EP conditions. A side job can cost you your main job and your right to work here.
Who handles the work pass and the company filings?
Work pass applications, LOC requests and pass changes are handled by our associated MOM-licensed employment agency, Little Big Employment Agency. Raffles Corporate Services handles the company side: incorporation, register and director records, and lodging director appointments or resignations with ACRA once MOM has approved them. Our free tools help you plan costs. Primary sources: MOM on secondary directorships and multiple jobs, and the Employment of Foreign Manpower Act 1990.
Frequently asked questions
Can an EP holder take a paid weekend job if the main employer agrees?
No. Your employer’s consent does not change the law; the weekend employer would still be employing you without a valid work pass.
Does my employer need to agree before I become a director of a related company?
Yes. MOM expects the appointing company to ensure that your employer has no objection, and it must then obtain the LOC before you act as director.
How long does the secondary directorship LOC last?
Up to the expiry or cancellation date of your current EP. When the EP is renewed, a new LOC must be applied for.
Is a ONE Pass holder in a different position?
Yes. MOM lists the ability to concurrently start, operate and work for multiple companies as a ONE Pass feature, subject to your employment contract. See our ONE Pass guide.
Need help with this?
Raffles Corporate Services can handle the ACRA filings, compliance documentation and records for you, and where court proceedings or legal advice are needed, we work with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice.
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Last reviewed: 11 October 2026. The Editorial Team, Raffles Corporate Services.