Inbound investments to Singapore are a mainstay of the country’s economy. To attract such investments, Singapore is renowned for its safety, attractive tax incentives, modern infrastructure and business-friendly policies. As a result, the Singapore Permanent Residency (“PR”) is highly valued among foreigners looking to stay in Singapore for the long-term.
If you are a serious investor seeking to obtain a Singapore PR and take advantage of Singapore’s business-friendly policies for your assets and investments, the Global Investor Programme (“GIP Scheme”) is be an ideal option in acquiring PR status and securing your relocation to the city-state.
What is the GIP Scheme?
The GIP Scheme allows a foreign investor who is interested in starting a business or investing in Singapore to obtain PR status in order to drive their business and investment growth. The scheme is jointly administered by the Economic Development Board (“EDB”) and the Ministry of Manpower (“MOM”). Note that there have been some recent changes to the GIP Scheme which will come into effect in March 2020.
We summarise the key requirements and options under the GIP scheme below.
What are the requirements?
There are specific sets of criteria to be eligible for the GIP Scheme:
| Profile | Established Business Owners | Nest Generation Business Owners | Founders of Fast Growth Companies | Family Office Principals |
| To qualify: | · You should possess at least three years of business and entrepreneurial track record;
· You should currently be running a company with an annual turnover of at least SGD200 million in the year immediately preceding the application, and at least SGD200 million per annum on average for the three years immediately preceding your application; · If your company is privately-held, you should have at least 30% shareholding in the company; AND · Your company must be engaged in one or more of the industries in the Annex B industries list below.
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· Your immediate family should have at least 30% shareholding or is the largest shareholder in the company you use to qualify;
· This company’s annual turnover must be at least SGD500 million in the year immediately preceding your application, and at least SGD500 million per annum on average for the three years immediately preceding your application; · You must be part of the management team of the company (e.g. C-suite / Board of Directors); AND · Your company must be engaged in one or more of the industries in the Annex B industries list below. |
· You must be a founder and one of the largest individual shareholders of a company with a valuation of at least SGD500 million;
· Your company must be invested into by reputable Venture Capital /Private Equity firms; AND · Your company must be engaged in one or more of the industries in the list below.
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· You must possess at least five years of entrepreneurial, investment or management track record; AND
· You must have net investible assets of at least SGD200 million.
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| List of industries (‘Annex B industries’):
Aerospace Engineering, Alternative Energy/Clean Technology, Automotive, Chemicals, Consumer Business (e.g. flavours and fragrances, food ingredients, nutrition, home and personal care), Electronics, Energy, Engineering Services, Healthcare, Infocomm Products & Services, Logistics & Supply Chain Management, Marine & Offshore Engineering, Media & Entertainment, Medical Technology, Nanotechnology, Natural Resources (e.g. metals, mining, agri-commodities), Safety & Security, Space, Shipping, Pharmaceuticals & Biotechnology, Precision Engineering, Professional Services e.g. consulting, design, Arts Businesses (visual arts business/performing arts business), Sports Businesses, Family Office & Financial Services.
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| Investment Options
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Option A or B or C | Option C | ||
What are the investment options?
Depending on which profile criteria you fulfil, the following investment options will be available in the scheme:
- Option A: Invest SGD2.5 million in a new business entity or in the expansion of an existing business operation.
- Applicants who invest under this option must submit a detailed five-year business or investment plan with projected employment, expenditure and financial projections that will incur in the Option A company; and
- You should have at least 30% shareholding in the Option A company and must be part of the management team of the company, and
- The Option A company must be engaged in one of the of the industries in the list of Annex B industries as stipulated above.
- Option B: Invest SGD2.5 million in a GIP fund that invests in Singapore-based companies.
- Applicants who apply for Option B will be assessed based on their future business or investment plans in Singapore. Specific details of proposed business activities, creation of local jobs and amount of investment are among the factors considered in the assessment.
- Option C: Invest SGD2.5 million in a new or existing Singapore-based single family office having Assets-Under-Management of at least SGD 200 million.
- Applicants who invest under this option must submit a detailed five-year business or investment plan with projected employment, expenditure and financial projections. The functions of the single family office, your role in the office, the proposed investment sectors, types of assets and geographical focus are among the factors considered in the assessment of your business or investment plan.
Please note that for all the options, you will be required to make the investment within six months of receiving your Approval-in-Principle (“AIP”) PR status.
If you are eligible for the scheme and willing to invest, Bayfront Law LLC can provide services to assist you through the application process of the GIP Scheme and direct you on a clear path to getting your Singapore PR as quickly as possible.
If you have any questions or require any additional information, please contact Ryan Lin of Bayfront Law LLC at ryan.lin@bayfrontlaw.sg.
This alert is for general information only and is not a substitute for legal advice.