Formal requirements
Global Investor Programme
An investor who is interested in starting a business or investing in Singapore, may apply for the Singapore Permanent Residence (“PR”) status through the Global Investor Programme (“GIP”).
An investor will have to fit in at least one of the following profiles:
a. Established Business Owners
i. the investor must possess at least 3 years of entrepreneurial and business track record;
ii. the investor should currently be running a company with an annual turnover of at least S$200 million in the year immediately preceding the application, and at least S$200 million per annum on average for the three years immediately preceding the application;
iii. if the company is privately held, the investor should have at least 30% shareholding in the company; and
iv. the company must be engaged in one or more of the industries listed in Annex B of the GIP factsheet (as attached below).
b. Next Generation Business Owners
i. the investor’s immediate family should have at least 30% shareholding or is the largest shareholder in the company the investor uses to qualify;
ii. the company’s annual turnover must be at least S$500 million in the year immediately preceding the application, and at least S$500 million per annum on average for the three years immediately preceding the application;
iii. the investor must be part of the management team of the company (ie. C-suite/Board of Directors); and
iv. the company must be engaged in one or more of the industries listed in Annex B of the GIP factsheet.
c. Founders of Fast Growth Companies
i. the investor must 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;
ii. the company must be invested into by reputable Venture Capital/Private Equity firms; and
iii. the company must be engaged in one or more of the industries listed in Annex B of the GIP factsheet.
d. Family Office Principals
i. the investor must possess at least 5 years of entrepreneurial, investment or management track record; and
ii. the investor must have a net investible assets of at least S$200 million.
The investment options are as follows:
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:
i. equities, REITs or business trusts listed on Singapore-approved exchanges;
ii. qualifying debt securities listed on the Monetary Authority of Singapore’s enquiry system;
iii. funds distributed by Singapore-licensed managers or financial institutions; or
iv. private equity investments in non-listed, Singapore-based operating companies.
Except for Family Office Principals who must take Option C, the other profiles will be able to select any of the above listed options.
Other investment opportunities
Singapore offers a variety of other investment options for individuals and businesses looking to establish a presence in the region.
A popular approach is to set up a private limited company and invest capital into it. With the company, investors can apply for an Employment Pass (“EP”) with the Ministry of Manpower, which allows them to work and reside in Singapore.
Another option is to establish a single-family office (“SFO”), a private wealth structure dedicated to managing the investments and wealth of a single family. Setting up an SFO in Singapore allows families to take advantage of attractive tax incentives under Sections 13O or 13U of the Income Tax Act 1947, while also enabling key personnels to obtain EPs. An SFO not only serves as a strategic platform for wealth preservation and succession planning but also provides access to Singapore’s financial ecosystem and extensive network of investment opportunities.
Document link for further information.
https://www.edb.gov.sg/content/dam/edb-en/how-we-help/global-investor-programme/GIP%20Factsheet.pdf