Singapore is rightfully called the economic powerhouse of Asia and is one of the most popular places in the world to invest capital. As such, it is no wonder why so many people are filing for the Singapore PR Application.
So, if you have an interest in investing, read this article to learn more about Global Investor Programme (GIP Scheme), often referred to as the Investor Scheme.
What is GIP?
Jointly superintended by the Economic Development Board (EDB) and the Ministry of Manpower (MOM), the Global Investor Programme (GIP Scheme) is the preferred scheme for investors to obtain a Singapore Permanent Resident status.
Under this route, you could invest your funds in a new business or you could use them to make your existing business even more successful.
Your proven entrepreneurial skills, substantial business track record, and business plans will help you prove that you’re capable of making the business flourish.
In Singapore, the government acts as a bridge to finding suitable partnership deals for both eligible global investors and local business networks.
Approved Business Sectors for GIP Scheme
If you’re looking to invest in Philip’s digital door lock (Singapore) or a training room rental, check if these industries fall under the business sectors approved for the GIP scheme.
Below is the list (as of May 2022):
(a) Aerospace Engineering
(b) Alternative Energy/ Clean Technology
(c) Automotive
(d) Chemicals
(e) Consumer Business
(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
(q) Safety & Security
(r) Space
(s) Shipping
(t) Pharmaceuticals & Biotechnology
(u) Precision Engineering
(v) Professional Services
(w) Arts Businesses
– Visual arts businesses
– Performing arts businesses
(x) Sports Businesses
(y) Family Office & Financial Services
Investment Sectors under GIP Scheme
Currently, these are the following investment options:
- Option A: Invest at least S$2.5 million in a new business startup or expansion of an existing business operation.
- Option B: Invest at least S$2.5 million in a GIP-approved fund that invests in Singapore-based companies.
- Option C: Invest S$2.5 million in a new or existing Singapore-based single-family office having Assets-Under-Management (AUM*) of at least S$200 million.
Eligibility Criteria
The Global Investor Program’s qualifying routes are:
1. Established Business Owners
A. The applicant must possess at least 3 years of entrepreneurial and successful business track record.
B. The applicant must possess at least 30% equity of a company and must provide audited financial statements of their company for the three years prior to their application.
C. The applicant must run a company with a turnover of at least SGD 200 million in the preceding 12 months and at least SGD 200 million per annum on average for the past 3 years.
D. The applicant should engage to a company in one or more industries listed in the approved business sectors.
2. Next-generation Business Owners
A. The applicant’s immediate family should have at least 30% equity or should be the largest shareholder of a company and should provide audited financial statements of their company for 3 years before the application.
B. The applicant must run a company with a turnover of at least SGD 500 million in the preceding 12 months and at least SGD 500 million per annum on average for the past 3 years.
C. The applicant must be a member of the company’s management team.
D. The applicant should engage with a company in one or more industries listed in the approved business sectors.
3. Founders of Fast-growing Companies
A. The applicant must be a founder and one of the company’s largest individual shareholders. The company should have a valuation minimum of SGD 500 million.
B. The applicant’s company must be invested in by reputable Venture Capital /Private Equity firms.
C. The applicant should engage with a company in one or more industries listed in the approved business sectors.
4. Family Office Principals
A. The applicant must have gained a minimum of 5 years of entrepreneurial, investment or management track record.
B. The applicant must possess net investible assets of at least SGD 200 million.
Application Process for GIP Scheme
1. Procure and Submit the Application Form. Applicant completes GIP Application Forms (both online and hardcopy) and submits them to EDB.
2. Interview Time. Applicant, if eligible, is invited for an interview with EDB.
3. Approval-in-Principle PR Status. Given that the assessment criteria is met, the Immigration & Checkpoints Authority (ICA) will issue an Approval-in-Principle (AIP) status to the Applicant which is valid for 6 months.
4. Invest within 6 months. Under the selected investment option, the applicant will have to invest the minimum amount of S$2.5 million within 6 months from the date of the AIP letter.
5. Provide Documentary Evidence. Applicant must provide evidence of the investments made and submit the Investment Undertaking on the Terms and Conditions of the investment made. Such proof may include a certified true copy of share certificates, bank statements and other legal documents.
6. Final Approval Letter Issuance. Once EDB has verified the documents, ICA will issue the Final Approval letter.
7. Approval of PR status: Applicant must complete the permanent residence process in Singapore within 12 months from the date of the Final Approval letter
Bottomline
If you are an entrepreneur or an investor and want to live permanently in Singapore, the ideal route to choose is through the Global Investor Programme (GIP Scheme).
But in order to qualify, the applicant must possess outstanding entrepreneurial skills and have gained a solid business track record.
You also have to check the investment options, qualifying options, and the application process. Comply with all the necessary requirements.
Once your application is approved, you may begin your new journey as a permanent resident in the country and contribute to its booming economy.