Singapore Permanent Residence – Investment (GIP) Scheme

The Singapore Economic Development Board (EDB) launched the Permanent Residence GIP Scheme to attract High Net Worth investors to make investments in Singapore. The investors need to set up a Singapore company or family offices in Singapore as part of the process, which would result in the creation of jobs and businesses for regional enterprises.

Additionally, the investors can enjoy certain benefits from establishing a company in Singapore, such as low personal and corporate taxes and no capital gains tax on any of the investments.

WHAT IS THE GLOBAL INVESTOR PROGRAM?

By investing 2.5 million SGD in a start-up company or GIP Fund, highly experienced business owners, investors, and entrepreneurs can help speed up their path to Singapore Permanent Residence under the Global Investor Program (GIP) scheme, a form of Singapore Investor Visa. 

This would also speed up the application process for Singapore Citizenship by Investment, which will take just two years from the time the GIP visa is granted.

Individuals can only become eligible for GIP by making the 2.5 million SGD investment. Along with having enough money, the applicant must also prove to authorities their entrepreneurial skills by giving them a strong track record. To obtain permanent resident status, they must submit a solid business concept and an investment strategy.

GIP QUALIFICATION CRITERIA

Applicants for the GIP must be qualified for one of the four investment groups listed below. The qualifications for each group are listed below.

For Established Business Owners

• Possess a track record of at least three years in entrepreneurship and business operations;
• Currently, be in charge of a business with a turnover of at least S$200 million in the year prior to the application and at least S$200 million on average over the three years prior to the application;
• Be involved in one or more of the qualifying industries; and Own at least 30% of the company, if it is privately held.
• Candidates may pick from the investment alternatives A, B, or C listed below.

For Next-Generation Business Owners

• Have at least 30% ownership of the company they use to qualify by immediate family members; 
• the company’s annual revenue must have been at least S$500 million in the year prior to the application and have averaged S$500 million annually for the three years prior;
• be a member of the management team of the business (such as the board of directors or C-suite); and
• Be involved in one or more of the qualifying industries;
• Candidates may pick from the investment alternatives A, B, or C listed below

For Founders of Fast Growth Companies

• Be a founder and one of the major shareholders of a business with a market value of at least S$500 million; 
• the business must operate in one or more of the qualifying industries; reputable venture capital or private equity firms must have invested in the business; and 
• the business must be owned by the applicant.
• Candidates can select from investment alternatives A, B, or C.

For Family Office Principals

• At least five years of entrepreneurial, investing, or management experience.
• Have net investable assets of at least S$200 million. They comprise all financial assets, with the exception of real estate, such as bank deposits, securities traded on the capital markets, investments in collective investment vehicles, premiums paid for life insurance policies, and other investment products.
• Candidates may only choose the C investment option.

INVESTMENT OPTIONS AND ASSESSMENT CRITERIA

Applicants that fit one of the four categories listed above can select one of three investment options in Singapore to meet eligibility requirements.

Option A

• To be eligible for this option, applicants must invest S$2.5 million in either the creation of a new business organization or the development of an existing business activity.
• The applicant must submit a thorough 5-year business or investment plan that includes estimated income, expenses, and employees. The viability of the business strategy, as well as its contribution to expanding Option A’s company, will be evaluated, as well as its ability to generate revenue and local job growth.
• The applicant must be a member of the management team and own at least 30% of the Option A company.

Option B

• The applicant must put S$2.5 million into a GIP fund that invests in Singapore-based businesses in order to be eligible for this option.
• The application will be evaluated based on the applicant’s potential for investment or business in Singapore. This could include specifics regarding the potential business ventures, the amount of investment, the number of local employment to be created, etc.

Option C

• The applicant must invest S$2.5 million in a single-family office with at least S$200 million in assets under management, whether it is new or already exists in Singapore.
• They must submit a thorough 5-year business plan that includes employment and revenue predictions. The applicant’s involvement in the single-family office, the duties of the family office, the intended investment sectors, asset types, and geographic focus will all be taken into consideration when evaluating the business plan.

APPROVED INDUSTRIES FOR THE GIP SCHEME

Under the GIP scheme, you have the option to invest in any of the following business sectors.

• Education
• Electronics
• Energy
• Environment & Water Technology
• Engineering Services
• Healthcare
• Aerospace Engineering
• Alternative Energy
• Automotive
• Chemicals
• Consumer Business
• Infocomm Products & Services
• Logistics & Supply Chain Management
• Marine & Offshore Engineering
• Space
• Pharmaceuticals & Biotechnology
• Precision Engineering
• Professional Services
• Lifestyle Products & Services (including (a) Visual Arts, e.g. art galleries, museums, auction houses, art logistics, art storage facilities, (b) Performing Arts, e.g. art theatres, production houses, (c) Sports, e.g. sports academies, headquarters of sports companies, etc.)
• Media & Entertainment
• Medical Technology
• Nanotechnology
• Natural Resources
• Safety & Security

PERMANENT RESIDENCE (PR) FOR FAMILY MEMBERS

The applicant’s immediate family members may also apply for permanent residency (their spouse and children under 21 years of age). 

The applicant must be aware that all second-generation male PRs are obligated to complete the National Service. They can request an extended social visit for their parents and kids (who are over 21) which is renewable.

APPLICATION PROCESS FOR THE GLOBAL INVESTOR PROGRAMME (GIP)

For a PR application under the GIP Scheme, the following documents are necessary:

• Form A: Investors’ Application for Permanent Residency
• Form B: Proposed Investment Plan Undertaking About the Program’s Terms & Conditions
• Form 4: Application for a Singapore Entry Permit

SUBMITTING THE APPLICATION

Before submitting application forms, a S$10,000 non-refundable fee must be paid. While giving directions to the financial institution, remember that any transaction fees are the applicant’s responsibility. The applicant will receive an invitation for an interview with The Economic Development Board after submitting the application.

APPROVAL-IN-PRINCIPLE AND INVESTMENT

The Immigration and Checkpoints Authority (ICA) will grant the applicant an Approval-in-Principle (AIP) status, which is good for six months if they pass the interview and the assessment criteria. 

Within six months of the AIP letter’s publication date, they must make the appropriate investment under the chosen investment choice. The investment must be made through a personal bank account created in the applicant’s name only at a bank with a Singapore registration.

FINAL APPROVAL

As soon as the applicant makes the investment, they must give the EDB proof of their investments (such as a certified true copy of their share certificates, bank statements, and other relevant papers) to show that the transaction was successful. 

A letter of final approval for PR status will be issued by ICA after EDB has validated the investment documentation. Within a year of the final approval letter’s date, the applicant must formally establish their status as a permanent resident.

Note that any non-English documents must be supported with formally sanctioned translated copies. 

Normally, the application procedure takes 6 to 8 months. The applicant can begin taking advantage of most of the privileges granted to Singaporeans after making investments, completing all the necessary steps, and receiving the PR identity card. 

These benefits include visa-free entry into the country, tax relief, reduced stamp duty on real estate purchases, lower medical costs, priority access to government-supported infant care facilities, government-run primary and secondary schools for your children, etc.

RE-ENTRY PERMIT VALIDITY

A re-entry permit (REP) for five years will be given to the investor once their status as permanent resident has been formally accepted. The applicant must always have a current REP in order to enter or exit Singapore. The investor is able to maintain their permanent resident status when traveling outside of Singapore.

The REP may be extended after the initial five years provided the investor meets specific requirements, subject to the selected option. Depending on whether or not certain business milestones have been reached, how much time has actually been spent in Singapore, or any combination of these, there are various REP renewal criteria at the end of the fifth year.

BENEFITS OF SINGAPOREAN RESIDENCE BY INVESTMENT

Singapore is a popular destination for residents by investment, offering numerous benefits for those who choose to invest in the country. Here are some of the key benefits of Singaporean residence by investment:

• High quality of life: Singapore is known for its high standard of living, modern infrastructure, and excellent healthcare and education systems. Residents enjoy a safe and secure environment, clean and well-maintained streets, and a diverse range of cultural and recreational activities.
• Business opportunities: Singapore is a global hub for business and finance, with a thriving economy and a supportive business environment. Investors can take advantage of Singapore’s low tax rates, strong intellectual property protection, and skilled workforce to grow their businesses.
• Easy access to Asia: Singapore’s strategic location at the crossroads of Asia makes it a gateway to the region. Residents can easily travel to other parts of Asia for business or leisure, and take advantage of Singapore’s excellent air connectivity.
• Permanent residence: Singapore offers a pathway to permanent residence through the Global Investor Program (GIP). Investors who meet the eligibility criteria can obtain permanent residence for themselves and their immediate family members.
• Citizenship: After a certain period of time as a permanent resident, investors may be eligible to apply for Singaporean citizenship. Singaporean citizens enjoy the right to vote, access to government services, and visa-free travel to many countries around the world.
• Education: Singapore has a world-class education system, with a strong emphasis on science, technology, engineering, and mathematics (STEM) subjects. Residents can take advantage of the excellent education opportunities for their children.
• Healthcare: Singapore has a high-quality healthcare system, with world-renowned hospitals and medical professionals. Residents can access affordable healthcare and enjoy a long life expectancy.

Reach out to us at Relin Consultants if you want to apply for the Permanent Residence GIP scheme or need more information.