Global Investor Program (GIP) in Singapore
- Posted by admin
- 16 January 2018
Entrepreneurs and business owners can invest in Singapore or start up a business through the Global Investor Program (GIP). The GIP program also allows investors to apply for Singapore Permanent Residence status.
GIP is the brainchild of the Economic Development Board (EDB), and its goal is to encourage those interested in PR status to investment in Singapore. Permanent Residence status will allow investors to remain in the country while tending to their businesses.
What Investment Options are Available?
GIP offers two investment options:
- Option A: Invest a minimum of S$2.5 million in a new business, or the expansion of an existing business.
- Option B: Invest a minimum of S$2.5 million in a GIP fund that will invest in Singapore-based companies.
Who is Eligible for the Global Investor Program?
Along with having the capital to invest, applicants must also meet certain requirements put forth by the Economic Development Board.
Investors may be eligible for GIP and to apply for PR if they have:
- A successful entrepreneurial background; and
- A substantial business track record.
In order to be considered, a GIP application must meet the following assessment criteria:
At Least 3 Years of Entrepreneurial and Business Experience
Applicants must have at least three years of business success under their belts, and must be able to produce audited financial statements of their companies for the last three years.
Financial statements must be audited by an accredited firm.
Be Engaged in the Right Industry and Have a High Turnover
The company must be engaged in at least one of the industries listed in Annex A.
Additionally, the company's turnover must have been at least S$50 million in the year preceding the application. The company must have earned a minimum of S$50 million on average for the three years prior to the application.
Investors may consolidate their businesses, which all must be engaged in industries listed in Annex A, to meet the minimum turnover requirement.
Must Hold 30% Share of the Company
Investors with privately-held companies should have at least 30% shareholding in the company. The applicant's role in the company as well as its profitability and growth will be taken into consideration.
Detailed 5-Year Investment or Business Plan
Along with the above requirements, applicants must provide a 5-year investment or business plan that includes annual financial projections and projected employment.
Investors will be required to meet the third-year milestones outlined in the plan and complete the business plan within five years of being granted PR final approval.
If investing in an existing company, the plan must also include the following third-year milestones:
- Annual total business expenditure of S$1 million or more
- The hiring of at least 5 additional employees
PR Status and Re-Entry Permit
GIP allows investors to apply for Permanent Residence status. Spouses and unmarried children under 21 years of age at the date of the application may also apply for PR under the GIP application.
Men who obtain PR status will be liable for National Service.
Parents of GIP applicants cannot apply for PR, but can apply for a Long Term Visit Pass, which lasts five years.
Once an applicant's PR is finalized, a Re-Entry Permit will be issued, which is valid for five years. The REP allows the applicant to maintain PR status when traveling outside of Singapore.
The REP permit will be renewed if the investor can meet the following requirements:
For Option A Applicants
For a three-year renewal:
- Fulfilled investment conditions under Option A, and
- The business being invested in incurs – in Singapore – at least S$1 million more in expenditures per year than the total business expenditure in the third-year milestone; and
- The company being invested in employs at least five more employees in Singapore, in addition to the employment requirements in the third-year milestone.
- You or at least one of your dependents under PR resided in Singapore for more than half of the time.
For a five-year renewal, investors must meet all of the above requirements.
For Option B Applicants
For three-year renewal:
- Must meet all investment conditions under Option B; and
- Establish a business in Singapore that employs a minimum of 5 Singapore citizens and has incurred a minimum of S$1 million in total business expenditure in Singapore.
- The applicant or one of the applicant's dependents lived in Singapore at least half of the time.
For the five-year renewal, applicant must meet all of the above requirements.
The Application Process
Applying for GIP is a multi-step process that starts with a non-refundable application fee of S$7,000. The fee must be sent as a single transaction, and must be for the full amount.
The transfer must include the applicant's name and date of birth.
The next step is to download the application forms – three in total:
- Form A
- Form B
- Form C
All forms can be submitted to https://application.sgip.gov.sg/public after completion. Several supporting documents must also be submitted.
If the documentation checks out, an interview will be arranged. If the application is approved, AIP (Approved-in-Principle) Permanent Residence status will be granted by the Singapore Immigration and Checkpoints Authority (ICA). The AIP PR is valid for six months.
In order to obtain PR status, the investment of S$2.5 million must be made within six months of obtaining AIP PR status. The payment must be made using a personal bank account in the applicant's name, and the bank must be a Singapore-registered institution.
After submitting the investment, hard copies of the following documents must be provided:
- Original signed copy of the "The Investment Undertaking."
- A Share certificate, or certified copy of investment documents.
- Bank statements proving that the investment was made from the applicant's personal bank account at a Singapore-registered institution.
Once the documentary evidence of the investment has been received as well as the signed Investment Undertaking, applicants will be issued a Final Approval of your PR status by the ICA. Applicants must formalize their PR status within 12 months of the final approval.
Those who choose Option A for investment will be required to meet other criteria after formalizing PR status.