Singapore Permanent Residency – Global Investor Programme (GIP)

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The Global Investor Programme (GIP) eases the way for foreign investors interested to set up and operate businesses in Singapore in obtaining their Singapore Permanent Residency (PR) status to live in Singapore.

The information below is updated as at 29th March 2016.

GENERAL

Client may apply to be a Permanent Resident under the Global Investor Programme (GIP).

Under GIP, you can choose one of the following investment options:

Option A: Invest at least S$2.5 million in a new business entity or to expand an existing business operation.

Option B: Invest at least S$2.5 million in a GIP fund that invests in Singapore-based companies.

 

ELIGIBILITY FOR GIP APPLICATION

You are eligible to apply for PR under the GIP if you have:

(a) A substantial business track record; and

(b) A successful entrepreneurial background.

 

ASSESSMENT CRITERIA FOR GIP APPLICATION

(a) You must possess at least 3 years of entrepreneurial and business track record and must produce audited financial statements of your company for the last 3 years.

  • The financial statements must be audited by an accredited audit firm. For example: – For companies incorporated in Singapore, the audit firm must be a Public Accounting Corporation (PAC) or an Accounting LLP registered under ACRA;
  • For companies incorporated in the United States of America, the audit firm must be on the list of Registered Public Accounting Firms released by the Public Company Accounting Oversight Board: http://pcaobus.org/registration/firms/documents/registered_firms.pdf
  • For companies incorporated in the People’s Republic of China, the audit firm must be one of the Top 50 audit firms ranked by China’s Institute of Certified Public Accountant (CICPA): http://www.cicpa.org.cn/news/201507/W020150715504023929610.pdf

(b) Your company must only be engaged in one or more of the industries listed in Annex A;

(c) Your company’s turnover must be at least S$50 million in the most recent year immediately preceding your application, and at least S$50 million per annum on average for the three years immediately preceding your application.

You should submit the financial statements of your company with the highest turnover. You may also consolidate your businesses to meet the minimum turnover criteria, however all of which must be in one or more of the industries listed in Annex A.

(d) If your company is privately-owned, you should have at least 30% shareholding in the company. Your role in the company, as well as the growth and profitability of your company would be taken into consideration.

 

ADDITIONAL ASSESSMENT CRITERIA FOR OPTION A APPLICANTS

You must submit a detailed 5-year business or investment plan with projected employment and annual financial projections. You are required to fulfill the third year milestones outlined in your business or investment plan, and fulfill your business plan within 5 years of Singapore Permanent Residence Final Approval.

If the business plan involves the investment into an existing Singapore-based company, the additional third year milestones that the company would be required to achieve are:

(i) hiring of at least 5 additional employees, and

(ii) an additional annual total business expenditure of at least S$1 million;

To illustrate, if the company’s annual total business expenditure as at the date of investment is S$X million, the company would be required to achieve as its third year milestone an annual total business expenditure of at least S$(X + 1) million.

Your company must be engaged in any of the industries listed in Annex A.

 

PROVISIONS FOR YOUR FAMILY

Your spouse and children (below 21 years old) are eligible to apply for PR under your GIP application. Male children who obtain PR by virtue of being your dependant will be liable for National Service. Parents and unmarried children who are 21 years old and above are not eligible to be included in your GIP application for PR status. Instead, they can apply for a 5-year Long Term Visit Pass (LTVP), which is tied to the validity of your Re-Entry Permit (REP).

 

 

VALIDITY OF RE-ENTRY PERMIT

Upon the formalisation of your PR, you will be issued a Re-Entry Permit (REP) that is valid for 5 years. The REP is a permit that allows you to maintain PR status when you are out of Singapore. Subsequent to the first 5 years, your REP would be renewed if you fulfill the following conditions:

 

For GIP Option A applicants going for a 3-year renewal:

  1. You must have fulfilled the investment conditions under Option A of the GIP; AND
  2. EITHER

(i) (A) The company that you will be investing in under GIP Option A employs in Singapore at least 5 more employees, in addition to those employed at the third year milestone, with at least 5 Singapore citizens amongst all employees, and

(B) The company that you will be investing in under GIP Option A incurs in Singapore an annual total business expenditure of at least S$1 million more than the annual total business expenditure incurred at the third year milestone;

OR

(ii) You or at least one of your dependants, who also has PR under your GIP application, must have resided in Singapore for more than half of the time.

 

For GIP Option A applicants going for a 5-year renewal:

  1. You must have fulfilled the investment conditions under Option A of the GIP;

AND

  1. (A) The company that you will be investing in under GIP Option A employs in Singapore at least 5 employees, in addition to those employed as at the third year milestone, with at least 5 Singapore citizens amongst all employees, and

(B) The company that you will be investing in under GIP Option A incurs in Singapore an annual total business expenditure of at least S$1 million more than the annual total business expenditure incurred at the third year milestone;

AND

  1. You and your dependants, who also have PR under your GIP application, must have resided in Singapore for more than half of the time.

 

For GIP Option B applicants going for a 3-year renewal:

  1. You must have fulfilled the investment conditions under Option B of the GIP;

AND

  1. EITHER

(i) You have set up a business in Singapore which employs at least 5 Singapore citizens as employees and has incurred in Singapore at least S$1 million in annual total business expenditure*; *If you have invested into an existing Singapore-based company instead of setting up a new business or company in Singapore, only incremental headcount employed and incremental annual TBE incurred by the existing company from the date of investment may be taken into consideration for the purpose of determining the fulfillment of the headcount and annual TBE conditions.

OR

(ii) You or at least one of your dependants, who also has PR under your GIP application, must have resided in Singapore for more than half of the time.

 

For GIP Option B applicants going for a 5-year renewal:

  1. You must have fulfilled the investment conditions under Option B of the GIP;

AND

  1. You have set up a business in Singapore which employs at least 5 Singapore citizens as employees and have incurred in Singapore at least S$1 million in annual total business expenditure*;

*If you have invested into an existing Singapore-based company instead of setting up a new business or company in Singapore, only incremental headcount employed and incremental annual TBE incurred by the existing company from the date of investment may be taken into consideration for the purpose of determining the fulfillment of the headcount and annual TBE conditions.

AND

3. You and your dependants, who also have PR under your GIP application, must have resided in Singapore for more than half of the time.

 

ASSESSMENT AND APPROVAL

Your application will be processed upon the receipt of all the necessary documents by Contact Singapore. An interview session will be arranged with you if you meet the qualifying criteria. If your application is approved, you will be issued an Approval-in-Principle (AIP) Permanent Residence (PR) status by the Singapore Immigration & Checkpoints Authority (ICA), which is valid for 6 months.

 

UPON OBTAINING AIP PR STATUS

You will be required to make your investment within the 6 month period of your AIP PR status. The investment quantum of S$2.5 million (according to the investment option selected) must be made from your personal bank account in only your name (sole name) opened in a Singapore-registered bank in Singapore. After making the required investment, you must submit the documentary evidence of your investment to Contact Singapore. These documents include bank statements showing that the investment was made from your personal bank account in your sole name opened in a Singapore-registered bank in Singapore, and your share certificate(s). Contact Singapore will hold these documents in custody for 5 years.

 

FORMALIZATION OF SINGAPORE PERMANENT RESIDENCE STATUS

Upon receiving the documentary evidence of your investment, you will be issued a Final Approval of your PR status by the Singapore Immigration and Checkpoints Authority (ICA). You are required to formalize your PR status within 12 months from the date of Final Approval.

 

REQUIRED DOCUMENTS AFTER FORMALIZATION OF SINGAPORE PR STATUS

If your chosen investment is in a new business entity or expansion of an existing operation under Option A, you will need to submit the audited financial statements as at the end of the 2nd, 3rd, and 4th year of your investment.

 

ANNEX A: LIST OF INDUSTRIES

(a) Aerospace Engineering

(b) Alternative Energy/ Clean Technology

(c) Automotive

(d) Chemicals

(e) Consumer Business (e.g. flavours and fragrances, food ingredients, nutrition, home and personal care)

(f) Electronics

(g) Energy

(h) Engineering Services

(i) Healthcare

(j) Infocomm Products & Services

(k) Logistics & Supply Chain Management

(l) Marine & Offshore Engineering

(m)Media & Entertainment

(n) Medical Technology

(o) Nanotechnology

(p) Natural Resources (e.g. metals, mining, agri-commodities)

(q) Safety & Security

(r) Space

(s) Shipping

(t) Pharmaceuticals & Biotechnology

(u) Precision Engineering

(v) Professional Services e.g. consulting, design

(w) Arts Businesses – Visual arts businesses, e.g. auction houses, art logistics/storage – Performing arts businesses

(x) Sports Businesses

(y) Family Office** & Financial Services

** Note that there are different requirements for those in the Family Office industry.

 

 

VALON can be your resource and business partner in Asia. Should you wish to receive more detailed information on VALON, please do not hesitate to contact us at enquiry@valoncorp.com.

How We Can Assist:

We will facilitate your application by assisting with:

  • Liaising with the local authorities
  • Evaluating your options
  • Preparing the forms and documents for application
  • Post-application follow-up
  • Assist with your relocation needs

 

Disclaimer: This publication does not provide financial, legal or tax or advice of any kind, and VALON cannot guarantee that the information is accurate, complete or up-to-date. While we intend to make every attempt to keep the information in this publication current, VALON make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained herein. Nothing on this publication should be used as a substitute for the advice of a third party. VALON assumes no responsibility to any person who relies on information contained herein and disclaim all liability in respect to such information. You should not act upon information in this publication without seeking professional advice.