Global Investor Programme Helps Foreigners Set Up Businesses In Singapore
Singapore’s Global Investor Programme or GIP aims to provide potential investors with the right avenues to set up shop in one of Asia’s most successful economies.
In a nutshell, GIP links interested entrepreneurs with business networks in Singapore to facilitate their transition. Apart from this, the GIP also allows foreigners to conveniently process their immigration documentary requirements to ensure smooth settling in Singapore.
The programme works through Contact Singapore, an alliance of the Ministry of Manpower (MOM) and the Singapore Economic Development Board (EDB). For potential investors, the GIP provides two investment options: one is to invest at least S$2.5 million in a new business entity, or else expand a business that is already in existence. The other option is to invest at least the same amount in a GIP fund that invests in companies based in Singapore.
To do any of these, an investor needs to apply for Permanent Residency status (PR) in Singapore. A substantial business track record and a successful entrepreneurial background are needed for the successful application of PR status under the GIP.
Applicants are assessed according to the following: first, one must have a minimum of 3 years of entrepreneurial and business track record. Along with this, one must be able to produce audited financial documents of his or her company for the last 3 years.
Second, one’s company must have a turnover of at least S$200 million in the most recent year, or an average minimum of S$200 million per annum for the last three years, if the company belongs to the construction or real estate industries. Companies belonging to other sectors, meanwhile, need to have a turnover of at least S$50 million in the most recent year, or a yearly minimum average of the same amount for the last 3 years. All financial statements reflecting these figures must be submitted.
Third, privately owned companies must possess at least 30 percent of shares in the whole company. One’s role in the company, as well as the company’s growth and profitability, will also be taken into account.
In addition to these three basic criteria, a potential investor must also submit a three-year detailed business or investment plan, which details employment expectations and annual financial projections. Further, one must be able to fulfill the projections outlined in this plan within a period of three years following the start of the investment.