An employment agency needs a licence to operate in Singapore. Before covering the key steps to set one up, it’s worth clarifying who needs an employment agency licence in the first place.
Who Needs an Employment Agency Licence
According to the Ministry of Manpower (MOM), organisations and individuals who place job seekers with employers must hold an employment agency licence to operate in Singapore, unless otherwise stated. A licence is needed if an organisation or individual does any of the following:
- Communicates with any job seeker for the purpose of processing an employment-related application by that job seeker.
- Collates the biodata or resume of any job seeker for the purpose of helping the job seeker establish an employer-employee relationship.
- Submits any work pass application on behalf of an employer or job seeker.
- Helps place any job seeker with an employer.
The licence is not required when recruiting persons solely to employ them for one’s own company or business, or when outsourcing the company’s own staff to a customer’s premises or offices.
Activities That Don’t Require a Licence
MOM’s website lists activities that do not require an employment agency licence, including:
- Wholly web-based job portals.
- Organisations and individuals who maintain and operate a job bulletin board and do not otherwise carry out any matching or placement.
- Organisations who submit work pass applications and do not otherwise carry out any matching or placement.
- Recognised universities or educational institutions.
- Community Development Councils.
- Employment and Employability Institute Pte Ltd.
- Workforce Singapore and SkillsFuture Singapore.
Key Steps to Set Up an Employment Agency
1. Register the Business
Register the business with one of the following principal activities with ACRA:
- Maid agencies (SSIC 78103).
- Employment agencies, excluding maid agencies (SSIC 78104).
- Executive search agencies (SSIC 78105).
Several business structures are available — sole proprietorship, partnership, private limited company, limited liability partnership, or limited partnership. The popular option is to incorporate a private limited company.
2. Choose the Right Office Space
The traditional agency model of a high-street shopfront is still a valid option, but home offices and co-sharing office units are also available depending on budget. A home office is subject to prior approval from HDB (for public housing) or URA (for a condominium unit). Read more about registered office addresses here.
3. Apply for the Employment Agency Licence
Submit the licence application to MOM and arrange the security bond and/or banker’s guarantee documents. All new employment agencies are required to furnish a security deposit ranging from S$20,000 to S$60,000. Employment agencies operating under any of the Comprehensive Licences, along with their key appointment holders and personnel, must obtain the Certificate of Employment Intermediaries.
4. Register Employment Agency Personnel
Employment agencies must register all their key appointment holders and other personnel. Agencies under a Comprehensive Licence (All), Comprehensive Licence (Local), or Comprehensive Licence (non-FDW) must also have each candidate certified as registered. Those successfully registered receive a registration number and have their information uploaded to MOM’s EA directory.
For further information, refer to MOM’s FAQ page.