Investors interested in starting up a business or investing in Singapore may apply for the Singapore Permanent Residence status (PR) through the Global Investor Program (GIP). The Singapore government introduced the GIP to attract serious investors into the country. The GIP is administered by a division of the Economic Development Board (EDB). They advise entrepreneurs and business owners who are interested in relocating to and investing in Singapore.
An individual can obtain a Singapore Permanent Resident status if he or she fulfils the eligibility criteria and invests in business sectors approved by the GIP.
Which are the industries/ business sectors?
Singapore is the world’s best place to do business. Why?
Globally Competitive Economy – To always stay competitive, Singapore constantly maintains and adapts to changes. For example, by creating a digital-friendly environment. The government believes that one should adapt to emergent technology and embrace it. It also built and maintained high-quality infrastructure, ensuring access to high-speed connectivity, robust IP protection, political stability, and more.
Skilled Workforce – Singapore offers a highly skilled labor force. According to the year 2020 INSEAD Global Talent Competitiveness Index, Singapore ranked 1st in Asia and 3rd worldwide for the highly skilled labor force. Singapore also ranked first in its ability to enable and attract talent.
No language barrier – English is the main used language of business in Singapore. It is widely spoken and used here.
Pro-business Environment – Singapore is currently ranked 2nd in the World Bank Group’s Doing Business 2020 Report. Incorporating a Singapore company is easy because it is strongly regulated by the country’s law. It is stable and has an efficient infrastructure supporting new business set up. Financial intermediation and enforcement of contracts help boost the business owners’ confidence and reduce unnecessary risk and stress when doing business.
Strategic geographical location – Singapore is located at the heart of Southeast Asia. It provides good global connectivity. Singapore has over 20 Free Trade Agreements (FTAs) and over 80 Avoidance of Double Taxation Agreements (DTAs). Any investors will consider using Singapore as its regional or global hub. There are other advantages, which is that Singapore has a low risk of natural disasters.
Corporate Taxation Benefits – All Singapore tax-resident companies are charged a flat rate of 17 percent on their chargeable income i.e. taxable revenues less allowable expenses, and other allowances.
This tax is on profits derived in Singapore and foreign soil, which are then remitted to the country. i.e Singapore follows a progressive tax framework, based on territorial policy, the sourced income of Singapore companies remitted to the country is also taxed.
Two ways to become a Singapore Permanent Resident (PR) by relocating your business here
#1 – Incorporating a private limited Singapore Company with Employment Pass – Under the Companies Act, Chapter 50. A foreign individual can incorporate a private limited Singapore Company with Employment Pass and EntrePass. That means you can apply for your Employment Pass upon successfully registered and set up your company (but you have to nominate a local director).
#2 – Incorporating a private limited Singapore Company with EntrePass – This pass is applicable for, but not limited to, innovative technology creation and application and R&D-intensive enterprises, including the clean-tech and biotech sectors.
Do take note that you must stay in Singapore for six (6) months before applying for Singapore permanent residency (PR). If you wished to apply for Singapore Citizenship, you got to stay in Singapore for two (2) years from the date of your Final PR Approval Letter.
For more details, please read our Global Investor Program.
Eligibility & Assessment Criteria
They are as follows:
- The applicant must invest a minimum amount of S$2.5 million either directly in a Singapore company or in a GIP fund that invests in Singapore companies
- To provide an audited financial statement of the company for the last three years.
- The company must have a turnover of at least S$50 million in the year immediately preceding the application date and an average turnover of S$50 million per annum for the immediately preceding three years before the application date.
- The applicant must have a minimum shareholding of 30% in his company if it is a privately-held company.
Applying Singapore PR for your Family members
You can apply Singapore PR for your spouse and children (below the age of 21 years old) in the GIP application along with the applicant.
The applicant’s parents and unmarried children above the age of 21 cannot apply for PR in the GIP application, but they can apply for the long-term pass visit.
Read more details on our article for Long Term Pass Visit.
Singapore Government has been very supportive of foreign entrepreneurs and investors. They created a favorable business climate and implemented various schemes to assist them. Although there are many challenges doing businesses in Singapore, with all supports provided and well-balanced by a global perspective, those challenges can be overcome.
By submitting proper supporting documents such as business track record, business plan, details about the investment in Singapore. There is a high chance of getting Singapore Permanent Residency approved by the authorities. Read our article on: Why live Permanently in Singapore 2020?
Speak with our immigration consultants to get a better understanding of the GIP program. They will share with you the up-to dates changes if there are. One of our aims is to provide a one-stop service to our client. Check out our Singapore Business Relocation Service for Foreign Business Owners.
Let us assist you with a hassle-free way to relocate your business to Singapore!