Eligible Business Owners
A DP holder wishing to operate a Singapore business may apply for LOC. The ACRA-registered business owner must be a sole proprietor, partner, company director with at least 30% shareholding, or a member of a Company Limited by Guarantee.
Renewal Requirements
At renewal, the DP must have at least three months remaining. The business must employ at least one Singapore citizen or permanent resident earning the prevailing Local Qualifying Salary and receiving CPF contributions for at least three consecutive months before submission.
Duration and Invalidity
An initial LOC lasts one year from issuance or until DP expiry, whichever is shorter. Subsequent renewals run up to DP expiry. LOC becomes invalid if the DP expires or is cancelled, or if the business is no longer active. Business inactivity still requires LOC cancellation.
Plan the Local Hire Evidence for Renewal
Separate first-time business-owner eligibility from the additional employment evidence needed at renewal. A business registration by itself does not demonstrate that the renewal hiring condition has been met. For preparation, identify the qualifying Singapore citizen or permanent resident employee, the salary paid and the three consecutive months of CPF contributions immediately preceding submission. This is a way to organise the evidence behind MOM's condition, not a new prescribed record format.
The current Local Qualifying Salary is S$1,800, with the official LQS page updated on 1 July 2026. Do not substitute the S$900 half-count band used in Work Permit and S Pass quota calculations for the business-owner LOC renewal salary condition. LQS wage compliance also distinguishes part-time hourly pay, full-time pay and overtime, and requires applicable Progressive Wage Model wages. Check the actual employment arrangement against that guidance rather than relying only on a quota calculator.
Coordinate the renewal with the DP expiry date so that at least three months of DP validity remain when applying. If the business ceases activity or the underlying DP expires or is cancelled, the LOC stops being valid; the cancellation action is still required. Keep that end-of-validity check separate from assembling the local employee's payroll and CPF history.
Sources: Local Qualifying Salary
Official Source
Written independently from official MOM source material.