In the realm of global investment and entrepreneurship, Singapore stands out as a beacon of opportunity and innovation. The island nation’s strategic location, pro-business policies, and robust infrastructure make it an ideal destination for investors seeking growth and stability. Among the various initiatives designed to attract foreign talent and capital, the Global Investor Program (GIP) shines as a pathway for high-net-worth individuals to contribute to Singapore’s dynamic economy while enjoying the benefits of residency and citizenship.
Understanding the GIP
The Global Investor Program (GIP) is a flagship initiative by the Singaporean government aimed at attracting experienced entrepreneurs, investors, and business leaders from around the world and providing them the Singapore Permanent Resident status (PR). Launched by the Singapore Economic Development Board (EDB), the GIP offers a structured framework for eligible individuals to establish businesses, make substantial investments, and contribute to Singapore’s economic growth story.
Key Eligibility Criteria
To qualify for the GIP, applicants must meet certain criteria, including:
For Established Business Owners:
a) Possess at least 3 years of entrepreneurial and business track record.
b) Currently running a company with an annual turnover of at least S$200 million in the year immediately preceding the application, and an average of at least S$200 million per annum for the three years immediately preceding the application.
c) If the company is privately held, have at least 30% shareholding in the company.
d) The company must be engaged in one or more of the industries listed in Annex B.
e) Investment options can be option A, B or C.
For Next-Generation Business Owners:
a) Immediate family should have at least 30% shareholding or be the largest shareholder in the qualifying company.
b) The company’s annual turnover must be at least S$500 million in the year immediately preceding the application and an average of at least S$500 million per annum for the three years immediately preceding the application.
c) Must be part of the management team of the company (e.g., C-suite/Board of Directors).
d) The company must be engaged in one or more of the industries listed in Annex B of the GIP factsheet.
e) Investment options can be option A, B or C.
For Founders of Fast Growth Companies:
a) Be a founder and one of the largest individual shareholders of a non-publicly listed company with a valuation of at least S$500 million.
b) The company must be invested in reputable Venture Capital/Private Equity firms.
c) The company must be engaged in one or more of the industries listed in Annex B.
d) Investment options can be option A, B or C.
For Family Office Principals:
a) Possess at least 5 years of entrepreneurial, investment, or management track record.
b) Have net investible assets of at least S$200 million.
c) Investment options can only be option C.
Investment Options
- Option A: Demonstrate an investment of minimally S$10 million in a new business entity or in the expansion of an existing business operation in Singapore.
- Option B: Invest S$25 million in a GIP-select fund that also invests in Singapore-based companies.
- Option C: Establish a Singapore-based Single-Family Office with Assets-Under-Management (AUM) of at least S$200 million, where minimally S$50 million must be deployed in any of the 4 investment categories of:
- (i) equities, REITS or business trusts listed on Singapore-approved exchanges;
- (ii) qualifying debt securities listed on MAS’ enquiry system;
- (iii) funds distributed by Singapore-licensed/registered managers or financial institutions; and (iv) private equity investments in non-listed, Singapore-based operating companies.
Application Process
The application process for the GIP involves several stages, including:
- Submission: Completion of the application form along with relevant supporting documents, including financial statements, business plans, and personal credentials.
- Evaluation: Assessment of the applicant’s business track record, financial standing, investment proposal, and potential contributions to Singapore’s economy.
- Approval: Review and approval by the Singapore Economic Development Board (EDB) or designated authorities.
- Permanent Residency: Upon approval, successful applicants and their immediate family members may be granted Permanent Residency (PR) status in Singapore.
Benefits of the GIP
Participants in the Global Investor Program can enjoy a host of benefits, including:
Permanent Residency (PR) Status:
Participants and their eligible family members are granted Permanent Residency (PR) status in Singapore. This status provides access to a wide range of benefits, including:
- Healthcare: Access to Singapore’s world-class healthcare system, renowned for its quality, efficiency, and accessibility.
- Education: Enrollment in Singapore’s highly regarded educational institutions, from primary schools to universities, offers a diverse range of academic and extracurricular opportunities.
- Public Services: Access to various public services and amenities, including public transportation, libraries, parks, and recreational facilities, enhancing the overall quality of life.
Business Opportunities:
Participants in the GIP have the opportunity to establish or expand businesses in Singapore, leveraging the country’s strategic location, robust infrastructure, and supportive business environment. Key advantages include:
- Strategic Location: Singapore’s position as a regional hub in Asia provides access to fast-growing markets, trade routes, and business networks across the Asia-Pacific region.
- Skilled Workforce: Access to a highly educated, multilingual, and skilled workforce, enabling businesses to recruit talent and drive innovation.
- Supportive Ecosystem: A business-friendly regulatory framework, efficient government services, and access to financing and investment opportunities facilitate business growth and expansion.
Tax Advantages:
Singapore offers a favourable corporate tax regime with various incentives and concessions for businesses and investors. Key tax advantages include:
- Low Corporate Tax Rates: Singapore maintains competitive corporate tax rates, with a maximum rate of 17%, attracting businesses seeking to optimize their tax liabilities.
- Tax Incentives: Various tax incentives and exemptions are available for specific industries, activities, and investment initiatives, encouraging entrepreneurship, innovation, and economic development.
- Double Taxation Treaties: Singapore has an extensive network of Double Taxation Treaties (DTTs) with other countries, minimizing the tax burden on international business activities and investments.
Quality of Life:
Participants in the GIP can enjoy Singapore’s high quality of life, safety, and cosmopolitan culture, making it an attractive place to live, work, and raise a family. Key aspects of Singapore’s quality of life include:
- Safety and Security: Singapore is consistently ranked as one of the safest cities in the world, with low crime rates and efficient law enforcement agencies ensuring peace of mind for residents.
- Cosmopolitan Environment: A vibrant multicultural society, diverse culinary scene, and rich cultural heritage contribute to Singapore’s dynamic and inclusive social fabric.
- Modern Infrastructure: Singapore boasts world-class infrastructure, including efficient public transportation, cutting-edge healthcare facilities, and well-planned urban spaces, enhancing convenience and connectivity for residents.
Pathway to Citizenship:
The GIP provides participants with a pathway to Singaporean citizenship, subject to fulfilling certain residency requirements and demonstrating a commitment to Singapore’s values and interests. This offers the following benefits:
- Citizenship Rights: Singaporean citizens enjoy a range of rights and privileges, including the ability to vote in elections, access to government benefits and assistance programs, and eligibility for certain public-sector employment opportunities.
- Global Mobility: Singaporean citizenship provides visa-free or visa-on-arrival access to a wide range of countries and territories, facilitating international travel and business opportunities.
- Integration and Identity: Citizenship offers a deeper sense of belonging, integration into Singaporean society, and participation in shaping the nation’s future.
Renewal and Compliance
5-year renewal of your Re-Entry Permit (REP)
The renewal of your Re-Entry Permit (REP) is contingent upon meeting specific conditions by the 5th year of your Permanent Residency (PR) status. Below are the requirements for a 5-year renewal:
For Option A Applicants:
- You must have fulfilled the investment conditions under Option A of the GIP.
- Your Option A Company in Singapore must employ a minimum of 30 employees, with at least half being Singapore Citizens, and among them, there must be at least 10 incremental employees.
- You or all your dependants who obtained PR under your GIP application must have resided in Singapore for more than half of the time.
For Option B Applicants:
- You must have fulfilled the investment conditions under Option B of the GIP.
- Maintain the S$25 million investment in a GIP-select fund.
- You or all your dependants who obtained PR under your GIP application must have resided in Singapore for more than half of the time.
For Option C Applicants:
- You must have fulfilled the investment conditions under Option C of the GIP.
- The Single-Family Office in Singapore that you establish must employ at least 5 incremental Family Office professionals, with at least 3 being Singapore Citizens, and maintain the S$50 million Assets Under Management (AUM) across any of the 4 investment categories.
- You or all your dependants who obtained PR under your GIP application must have resided in Singapore for more than half of the time.
3-year renewal of your Re-Entry Permit (REP)
For a 3-year renewal of your Re-Entry Permit (REP) under the Global Investor Program (GIP) in Singapore, specific conditions must be met. Here are the requirements based on the three options:
For Option A Applicants:
- Fulfil the investment conditions outlined under Option A of the GIP.
- EITHER:
- Your Option A Company in Singapore must employ a minimum of 30 individuals, with at least half being Singapore Citizens, including at least 10 incremental employees; OR
- You and all dependents who obtained PR through your GIP application must have resided in Singapore for more than half of the time.
- EITHER:
- Maintain the investment of at least S$25 million in a GIP-select fund; OR
- You and all dependents who received PR status under your GIP application must have resided in Singapore for more than half of the time.
For Option B Applicants:
- Satisfy the investment conditions specified under Option B of the GIP.
- Meet one of the following:
- Maintain the investment of at least S$25 million in a GIP-select fund; OR
- You and all dependents who acquired PR through your GIP application must have resided in Singapore for more than half of the time.
For Option C Applicants:
- Meet the investment requirements outlined under Option C of the GIP.
- Choose one of the following:
- Establish a Single-Family Office in Singapore employing at least 5 incremental Family Office professionals, with at least 3 being Singapore Citizens, and maintain a minimum of S$50 million Assets Under Management (AUM) across any of the 4 investment categories; OR
- You and all dependents who received PR status under your GIP application must have resided in Singapore for more than half of the time.
Contributions to Singapore
Beyond the individual benefits, the GIP plays a vital role in driving Singapore’s economic development and competitiveness on the global stage. By attracting experienced entrepreneurs, investors, and business leaders, the program stimulates innovation, creates jobs, and fosters collaboration across various industries, ultimately contributing to Singapore’s status as a leading hub for business and investment in the Asia-Pacific region.
Conclusion
In summary, the Global Investor Program (GIP) in Singapore offers a unique opportunity for high-net-worth individuals to forge a meaningful connection with one of the world’s most dynamic economies. Through strategic investments, entrepreneurial endeavours, and a commitment to excellence, participants in the GIP can not only achieve their personal and professional goals but also contribute to the continued success and prosperity of Singapore. As a gateway to new possibilities and unparalleled growth, the GIP stands as a testament to Singapore’s vision of innovation, inclusivity, and global leadership in the 21st century.
Moreover, navigating the intricacies of the GIP and establishing a business presence in Singapore can be a complex process. This is where corporate service providers in Singapore play a crucial role. These professionals specialize in assisting foreign investors with company incorporation, compliance with local regulations, tax planning, and other essential services. By leveraging their expertise and extensive network, corporate service providers can streamline the GIP application process, facilitate business setup, and ensure ongoing compliance, allowing investors to focus on their core objectives and maximise their impact in Singapore’s vibrant economy. With the support of these trusted partners, participants in the GIP can navigate the path to success with confidence and efficiency.
