Singapore has expanded its Global Investor Programme by introducing three new categories of eligible investor and a third investment option.
Introduced in 2004, the GIP offers a fast-track route to permanent residence in Singapore to wealthy individuals investing at least $2.5 million in either a new or expanding business or a GIP fund investing in companies based in Singapore.
The changes to the program, which came into force on March 1, 2020, have been introduced to help Singapore maintain its status as a key hub for high-growth tech companies and investments in the region.
The objective of these changes is to attract more high-performing businesses to the country and to bolster the country’s banking and finance sector through establishment of more single-family offices.
Existing Category of Eligible GIP Investors
Established Business Owners
- Investor must have at least three years of experience as entrepreneur or business owner.
- Company must have annual turnover of at least $200 million, increased from $50 million earlier, in the last year and average $200 million turnover in the three years prior to the application.
- At least 30% ownership in the business/company, if privately owned.
New Categories of Eligible GIP Investors
Next-Generation Business Owners
- The immediate family must own at least 30% in the company or must be its biggest shareholder.
- Last year’s annual turnover must be $500 million and the average turnover in last three preceding years too must be $500 million or higher.
- Applicant must be actively involved in the management of the company and must be a part of the management team like the company’s Board of Directors.
Founders of Fast-Growth Companies
- Applicant must be founder and one of the largest shareholders of the company.
- The company’s net worth must be at least $500 million.
- Reputed venture capital or Private Equity firms must have invested in the company.
Family Office Principals
- Have Assets-under-Management, including bank deposits, capital market investments, financial assets, and other collective investment schemes, of at least $200 million.
- Five years of experience as an entrepreneur or in investment or management.
In all four categories, the company must be engaged in business in an eligible industry.
Deployment of Investments
Eligible individuals must invest at least 2.5 million Singapore dollars in
- A new or existing business in Singapore, or
- A GIP-approved fund that invests in Singapore-based companies, or
- A new or existing Singapore-based single-family office.
The GIP Application Process
The application process commences with submission of the GIP forms to the Economic Development Board. After an interview, applicants fulfilling the eligibility criteria will receive an Approval-in-Principal (AIP) from the Immigration and Checkpoints Authority (ICA).
After approval, the applicant must deploy the investment before the six-month validity of the AIP expires. Upon verification of documentary evidence of deployment of investments, the ICA will issue the final approval letter.
The investor then has 12 months from issue of the final approval to apply for and obtain permanent residence in Singapore.