2/21/2015 StartinganEmploymentAgencyinSingapore|RecruitmentAgency,StaffingAgency

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tartinganEmploymentAgencyinSingaporeAnemploymentagencyinSingaporeisacompanythathelpsothercompanieswiththeirrecruitmentandstaffingneeds,normallyactingasthemiddlepartybetweenemployerandpotentialemployee.Anemploymentagencycouldbeengagedinplacementoflocalaswellasforeigncandidatesstartingfromjuniorlevelpositionstotoplevelexecutives.WithSingaporeencouragingforeignersfromexecutiveandmiddlemanagementlevelstomanuallaborerstoworkinthecountry,therearenumeroussmallandbigplacementagenciesandheadhuntingfirmstohelpSingaporecompaniesmeettheirstaffingneeds.

AllemploymentagenciesinSingaporerequireanEmploymentAgencyLicense(EAL)priortostartingitsbusinessactivities.ThisisthebasiclicenserequiredforallcategoriesofrecruitmentagenciesandisgovernedbytheMinistryofManpower(MOM)ofSingapore.Employmentagencylicenseinothercountriesisoftenalsoreferredtoas:

Recruitmentagencylicense

Staffingagencylicense

Placementagencylicense

Manpoweragencylicense

Thepurposeofthisguideistoprovideinformationonhowtostartanemploymentagencyandgettherequiredlicense.Notethatanemploymentagencylicenseisnotrequiredifyouarehiringstaffunderyourcompanysdirectemployment.

WhoneedsanEmploymentAgencyLicense?AllentitiesandindividualsthatareengagedinemploymentagencyactivitiesinSingaporemustapplyfortheEmploymentAgencyLicense.ThisisirrespectiveofwhethertheagencyisbasedinSingaporeoroverseasandregardlessofwhetheritdealswithjobsinSingaporeoroverseas.Employmentagencyactivitiesconstitutethefollowing:

Communicatingwithprospectivecandidatesregardingtheirjobapplications

Collatingtheresumeofprospectivecandidateswhoareseekingemployment

SubmittingSingaporeWorkVisaapplicationstotheauthoritiesonbehalfofemployersorcandidatesand

http://www.guidemesingapore.com/contact-ushttp://www.guidemesingapore.com/taxationhttp://www.guidemesingapore.com/resourceshttp://www.guidemesingapore.com/relocation/work-pass/singapore-employment-pass-guide

2/21/2015 StartinganEmploymentAgencyinSingapore|RecruitmentAgency,StaffingAgency

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Facilitatingtheplacementofcandidateswithemployers.

AgenciesthatarenotactivelyinvolvedinplacingcandidateswithemployersorthatdonotsubstantiallyinfluencetheoutcomeofemploymenttermsandconditionsareexemptfromholdinganEmploymentAgencyLicense.Examplesofsuchentitiesinclude:

Individualswhodoadhoc,informalorcasualjobreferrals

Agenciesorcentersthatmatchtuitionteacherswithclients

Onlinejobportalsandjobbulletinboards

Courierservicesthatareusedinrecruitmentorjobplacementactivitiesand

CampusplacementdivisionsofSingaporesautonomousuniversities.

Dependingupontheprofileofcandidatesthatanemploymentagencydealswith,itcanchoosetoapplyforeitheraComprehensiveLicenseoraSelectLicense.TheSelectLicenseisdesignedforemploymentagenciesthatplacelocalorforeigncandidateswhoearnamonthlybasesalaryofmorethanS$7,000.TheComprehensiveLicenseismeantforallotheremploymentagenciesthatdonotqualifyfortheSelectlicense.

Notethatexistingemploymentagencieswhoselicenseexpiresonorafter1April2011,mustatthetimeoflicenserenewal,optforeitheraComprehensiveLicenseorSelectLicense.

EmploymentAgencySetupKeyFacts&RequirementsThefollowingkeyrequirementsapplyforsettingupanemploymentagencyinSingapore:

RegisterSingaporecompanyYoumustfirstincorporateaSingaporecompanyandselectbusinessactivitycodethatsappropriateforthetypeofrecruitmentactivitiesyouwillbeundertaking.FordetailsonhowtosetupaSingaporecompany,refertoSingaporecompanyregistrationguide.

SetupabusinessofficeThecompanymustestablishanoperatingbusinessoffice.Therearevariousofficespaceoptionsyoucanchoosefromdependinguponyourbusinessneedsandbudget.NotethatyouwillneedtoseekapprovalfromtheUrbanRedevelopmentAuthorityofSingapore(URA)ifyouplantomakeadditionsoralterationstoaconservationbuilding.PriorapprovalfromtheBuildingandConstructionAuthority(BCA)isrequiredinordertodisplaysignsonyourconservationbuilding.Ifyouplantoexecuteanyfiresafetyworks,approvalfromtheSingaporeCivilDefenceForcemustbeobtained.

ApplyforEmploymentAgencyLicense:ThecompanymustobtainEmploymentAgencyLicense,eitheraComprehensiveLicenseoraSelectLicense,issuedbySingaporeMinistryofManpower.Thelicenseisonlyissuedtolegalentitiesandnotindividualpersons.

http://www.guidemesingapore.com/incorporation/office-space/office-space-options-overviewhttp://www.guidemesingapore.com/incorporation/company/singapore-company-registration-guide

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PaysecuritydepositCompaniesthatareissuedwithaSelectLicensemustfurnishaSecurityDepositofS$20,000intheformofBankersGuaranteewhilecompaniesthatareissuedwithaComprehensiveLicensewillhavetopayasecuritydepositrangingbetweenS$20,000toS$60,000dependingontheirplacementvolumeandtrackrecord.

CertificationofemploymentagencypersonnelInordertoworkinanemploymentagencythatisissuedwithaComprehensiveLicense,allemployees(whetherpermanent,temporary,oronacontractualbasis),includingkeyappointmentholders(e.g.CEO,CFO,COO,GeneralManagers),mustbecertifiedundertheCertificateforEmploymentIntermediaries(CEI)course.Certificationisrequiredpriortoobtaininganemploymentagencylicense.Keyappointmentholderswillhavetoattendthe40hourcoursewhileotheremploymentagencypersonnelneedtoattendthe32hourcourse.Notethatcertificationofkeyappointmentholdersismandatory,irrespectiveofwhethertheyperformordonotperformemploymentagencyrelatedwork.Allotherpersonnelneedtobecertifiedonlyiftheyperformemploymentagencyrelatedwork.

Keyappointmentholdersofemploymentagenciesthatwerelicensedpriorto1April2011willbegiventimeuntil31March2012toattaincertificationwhileotherpersonnelwillbegiventimeuntil31March2014.ThecertificationdeadlinefornewemploymentagencieslicensedbetweenAprilJune2011is30September2011.ExistingCertificateforEmploymentAgencies(CEA)holdersandthosewhohadpreviouslybeenexemptedfromCEAarerequiredtoattendashorterbridgingprogramme,availablefrom1Juneto15July2011.Thosewhofailtoattendthebridgingprogrammeby15July2011willneedtoattaintheCEI.NotethatcertificationisnotrequiredforSelectLicensedagencies.

RegistrationofemploymentagencypersonnelAllemploymentagencypersonnel,includingkeyappointmentholders,whoperformemploymentagencyrelatedwork,regardlessofwhethertheyworkforComprehensivelicensedagenciesorSelectlicensedagencies,mustberegisteredwiththeSingaporeMinistryofManpowerandbeissuedwithastandardisedregistrationcard.Anemployeecanonlyworkforandberegisteredunderoneemploymentagencyatanypointintime.Anonrefundable,onetimefeeofS$160ispayableforeachregistration.Theregistrationisnottransferablefromoneemployertoanother.Iftheemployeeofoneparticularrecruitmentfirmwantstoswitchjobsandjoinanotheragency(s)hewillhavetoderegisterhimself/herselfandreapplyforregistrationunderthenewcompany.Registrationisnotrequiredforkeyappointmentholdersandotheragencypersonneliftheydonotperformemploymentagencyrelatedwork.

Thepersonnelofemploymentagenciesthatwerelicensedbefore1April2011willbegiventimeuntil30June2011toregisterthemselveswiththeMinistryofManpower.

EligibilitycriteriaforemploymentagencypersonnelEmploymentagencypersonnel,includingkeyappointmentholders,musteitherbeaSingaporecitizen,SingaporepermanentresidentoraforeignerwithavalidSingaporeworkvisa.Inaddition(s)hemustbecertified(ifapplicable).Furthermore,thepersonshouldbefreeofbankruptcyandcourtconvictions.

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Planningtosetupatravelagency?Wecanhelp.

EmploymentAgencyLicenseApplicationProcedureTheapplicationprocedureinvolvessubmittinganapplicationformtotheMinistryofManpoweralongwithalicenseapplicationfeeofS$400.

Theapplicationprocessingtimeforemploymentagencylicenseapplicationisapproximately13weeks.Youwillbenotifiedviaemailandifyourapplicationisapproved,aninprincipleapproval(IPA)letterwillbeattached.AfterreceivingtheIPAletter,youwillneedtosubmitthefollowingdocumentsinorderforthelicensetobeissued:

ObtainaSecurityBondintheformofBankersGuaranteefromabankinSingapore.InorderforthebanktoissueyouaBankersGuarantee,youneedtoopenafixeddeposit(FD)accountforthesaidamountwithbank.BankersGuaranteemustcover15monthsfromthestartdate.

InadditiontotheSecurityBond,thefollowingdocumentswillberequired:

Aclearcopy(bothsides)ofyourSingaporeID(forSingaporeCitizensandPermanentResidents)oryourEmploymentPass.

LatestcopyofyourcompanysbusinessprofilefromACRA

Arecentpassportsizephotograph

CopyofyourInPrincipleApprovalletter

CopyofapprovalletterfromtherelevantauthorityifyouwillbeoperatingundertheHomeOfficescheme

AcopyofthecertificatestatingthatyouhavepassedtheCertificateforEmploymentIntermediaries(CEI)course

Completedchecklistform

AnyadditionaldocumentsrequestedinyourInPrincipleApprovalletter.

Onceyouhavesubmittedthenecessarydocumentsandassumingalldocumentsareinorder,youshouldreceiveanemailnotificationapproximatelywithin7daysofsubmissionofthedocumentsstatingthatyourapplicationisapproved.Atthispoint,youwillneedtomakeapaymentofS$100fortheissuanceofthelicense.Thelicensewillbemailedtotheaddressasindicatedintheoriginalapplication.Thelicenseisvalidforupto3yearsfromthedateofissueandisrenewablethereafter.

EmploymentagenciesarerequiredtocomplywiththerevisedEmploymentAgencyRules.Therevisionsincludemodifyingfeecapsandintroducinganewfeerefundpolicy.Detailsofthemodificationsareasfollows:

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2/21/2015 StartinganEmploymentAgencyinSingapore|RecruitmentAgency,StaffingAgency

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EmploymentAgencyLicenseTimeline

ACTIVITY APPROXIMATETIME

Fileapplication 1day

ReceiveInPrincipleApprovalemailnotification 515days

Feecap:Employmentagenciesmaychargetheirclients(i.e.theemployeraswelltheselectedcandidate)afee,provideditiswithinthedesignatedfeecap.Therewillbenocaponthefeechargedtoemployersforservicesprovided.However,feechargedtothecandidatewhoisselectedforemploymentshouldnotbemorethanonemonthsworthofsalaryperyearforthedurationoftheapprovedworkpassoremploymentcontract,whicheverisshorter.Thisissubjecttoamaximumoftwomonthsworthofsalary.ThefeecapwillcoverallagencyfeescollectedbyemploymentagenciesinSingapore,eveniftheyarecollectedfromcandidatesviaanoverseasintermediaryemploymentagency.Notethatthefeecapdoesnotapplytoagencyfeescollectedandretainedbyoverseasintermediaryemploymentagencies.Certainitemsarenotsubjecttothefeecapsuchastrainingexpensesincurredoverseas,medicalcheckupsoverseasandtravelexpensestoSingapore.CandidatesarenotliabletopayfeesincurredinSingaporesuchastraining,medicalcheckups,etc.astheyaretobebornebytheemployeroremploymentagency.

Feerefund:Iftheemployer(thatwasaclientoftheemploymentagency)terminatesthecandidate(whowashiredbytheemployerviatheemploymentagency)within6monthsofemployment,thentheemploymentagenciesmustrefund50%oftheagencyfeesthatwascollectedfromthecandidate.Thisruledoesnotapplyifemploymentterminationiscandidateinitiated.Theemploymentagencymustrefundthefeeswithin7workingdaysofemploymentterminationorbeforetheforeignworkerisrepatriated,whicheverisearlier.

Errantandunlicensedemploymentagencieswillsoonfacetighterenforcementsandpenalties.Anumberofmeasuressuchasintroducingnewoffences,bringinginmoreenforcementoptionsandenhancingthepenaltiesforexistingoffenceswilltakeeffectfrom1April2011.

EmploymentAgencyLicenseRejectedApplicationsUndernormalcircumstances,ifyouhaveaccuratelysubmittedyouremploymentagencylicenseapplication,thereshouldntbeanyreasonforrejectionofyourapplication.Ifhoweverforsomereasonyourapplicationisrejected,notallislost.Youcansubmitanappealletterwithin30days.Yourappealwillbereviewedbyaseniorofficerandtheprocessingcouldtake12weeks.Youmaybeaskedtofurnishadditionaldocumentsinsupportofyourapplicationonacasebycasebasis.

EmploymentAgencyLicenseFAQsQ.Howlongdoesittaketoprocesstheemploymentagencylicensefromstarttofinish?

A.Apracticaltimelineconsideringallthestepsinvolvedwouldbeabout35weeksasfollows:

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Prepareandsubmitrequireddocuments(securitybond,bankersguarantee,etc.)

25days

Receiveapprovalnotification 710days

Makepaymentforlicense 1day

Licensereceivedviapostalmail(includingtimetakenbyauthoritiesandpostalservice)

57days

Q.DoIneedtorenewtheemploymentagencylicense?Ifso,whatistheprocess?

A.Employmentagencylicenseisissuedfor3yearsandisrenewablethereafter.Abouttwomonthsbeforetheexpirationdateofyourlicense,youwillreceivearenewalnoticefromauthorities.Therenewalnoticewillbesenttoyouviaemailonrecord.Ifyouremailidhaschanged,youshouldupdateitinyourlicensebyusingthesameonlinelicensemanagementportalthatyouusedtosubmityouroriginalapplication.

TheeligibilitycriteriaforrenewalofyourSingaporeemploymentagencylicenseissimpleandconsistsof:

Youragencymusthaveagoodtrackrecordi.e.youshouldnothavetoomanycomplaintsagainstyouandyoushouldnothavebrokenanylaws

Theofficersofthecompanycontinuetobecleani.e.freeofbankruptcyandcourtconvictions

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