How to Cooperate When Your Singapore EP is Audited by MOM After Approval

In recent years, as the number of Singapore Employment Pass (EP) holders continues to rise, particularly with the surge in Self-Employment EP applications, the Ministry of Manpower (MOM) has also begun to strengthen audits of approved EPs to ensure all EP holders and their companies are genuinely operating and complying with regulations.

So, if you've already obtained an EP and are suddenly notified of an audit, how should you cooperate? Will your EP be cancelled? This article provides detailed answers.

1. Why Are Audits Conducted?

According to recent trends, MOM's audits of EP holders are becoming more frequent, with self-employed EP holders particularly likely to be included in audit scopes. The main reasons include:

• Many EP recipients don't actually conduct company business, merely living in Singapore with their EP status
• This behavior contradicts the original intent of the EP system — to attract foreign professionals with actual skills and economic contributions
• Singapore wants to ensure all EP holders are genuinely employed by companies and make real contributions to the local economy and employment

Therefore, to prevent "shell companies" and "nominal positions," MOM has strengthened its post-approval verification mechanisms.

2. What Are the Common Audit Requirements?

Once an EP is audited, you're typically required to provide the following materials within a specified time (usually for the past three months):

1. Company Contracts and Invoices
   • Client contracts, service agreements, payment invoices
   • To prove the company has genuine business dealings and revenue
2. Company Bank Account Statements
   • Showing actual company transactions
   • Whether there's stable income, whether salaries are paid, etc.
3. Employee List and Salary Information
   • Names, positions, responsibilities, and monthly salaries of all employees
   • Whether local employees are hired, whether there's an actual operating team
4. Office Lease Agreement and Office Photos
   • Contract for actual office space rental
   • Photos must prove the office environment genuinely exists and is used for work

✅ MOM's goal is to determine: Is this company operating normally?
❌ If the company has no income, no employees, no office premises, it's likely to be deemed a "nominal company."

3. Are There Fixed Audit Standards?

No. MOM doesn't publicly disclose its audit criteria and won't notify you in advance "why you're being audited." Possible triggers include:

• Self-employed EP, especially companies with no obvious external exposure/tax records
• Company registered for a long time but with weak business data
• Employers who have submitted inconsistent information
• EP holders absent from Singapore for extended periods (or with no activity records)

But more often it's random or sample checking, mainly depending on whether the results can "convince the auditor."

4. The Right Way to Cooperate with Audits

Once you receive an MOM audit notice, we recommend the following cooperation steps:

1. Organize complete materials as soon as possible, don't delay submission
2. Keep materials authentic and logically consistent, never falsify
3. If materials are insufficient, attach explanatory documents (e.g., project just started, revenue not yet received, etc.)
4. If uncertain about how to prepare certain content, seek professional guidance to avoid inadvertently "exposing risks"

⚠ Note: If materials are incomplete or cannot prove operational substance, MOM has the right to cancel the EP or refuse renewal.

5. What If There Are Problems with the Assessment?

If you're already aware that your company's operating situation has major issues (such as long-term lack of clients, no employees, insufficient funds), we suggest not blindly submitting materials, but instead:

• First conduct an internal self-check and professional assessment
• Clarify whether you can currently construct a "reasonable business logic chain"
• If you truly lack operational capability, consider other long-term status options or readjust your company's direction

6. Summary

EP approval is just the first step. To successfully maintain EP status in Singapore, what's more important is that the company genuinely operates, complies with tax regulations, and has a reasonable employment structure. MOM's recent audit trends clearly indicate: they don't want EPs to become "empty status tools," but rather to genuinely attract high-quality talent and businesses.

If you already hold an EP, we recommend preparing audit materials in advance and optimizing your company structure and financial arrangements to avoid being caught off guard during an audit, or even facing the risk of EP cancellation.

📌 Want to prepare an EP operational status self-assessment report?
📌 Being audited and unsure how to prepare materials?
📌 Feel free to contact professional consultants. We can assist you with complete preparation for the entire process.