Singapore, the focal point of business in Asia, has been at the forefront of economic innovation. The country continues to be one of the most preferred places for doing business and attracts international investors through its structured pathways. One of the strategic approaches taken by the country to draw global investors is to offer them residency facilities.
Now, founders who establish a business in the city-state and contribute to the economy of Singapore can enjoy residency rights in the country. The stable economy, transparent legal system, and strategic access to global markets are some of the factors appealing to international investors.
The Singapore Global Investor Program allows foreign nationals to apply for permanent residence status. This initiative targets entrepreneurs and investors keen on making significant financial contributions to Singapore. Its primary goal is to attract affluent individuals looking to establish their homes in Singapore.
The EntrePass & Global Investor Program
- The EntrePass
- The Global Investor Program
The EntrePass
- Applicants must register with ACRA as a Private Limited Company in Singapore (Pass holder must hold at least 30% of the registered company)
- Venture-backed or owns innovative technologies
A company qualifies as venture-backed or possessing innovative technologies if it meets the following criteria:
- Secured investment from entities such as government funding sources, venture capitalists, corporations, family offices, or angel investors.
- Created, produced, or brought to market technology-based products, services, or platforms.
- Obtained patents through an accredited national intellectual property authority.
- Engages in active research collaborations with a research institution.
Typically, this process takes 8-12 weeks and involves multiple levels of evaluation.
The Global Investor Program
On the other hand, the government has designed the Global Investor Program(GIP) for seasoned investors and business leaders. For qualification, applicants need to demonstrate a strong track record of entrepreneurship and robust finances.
The Favorable Business Environment in Singapore
Singapore is currently placed in the top five countries in terms of ease of doing business. The low corporate tax rate of 17%, minimal restrictions, and streamlined regulations make it the perfect place for setting up an organisation.
In Singapore, startups benefit from generous tax exemptions during their first three years. Moreover, Under the Economic Expansion Incentives (Relief from Income Tax) Act (“EEIA”), the Minister for Trade and Industry has the authority to designate qualifying companies as pioneer enterprises or pioneer service companies. Once approved, these companies can benefit from a tax relief period that lasts up to 15 years, during which any income generated from the pioneer trade will be exempt from taxation.
Singapore invests significantly in R&D, with expenditure accounting for approximately 1.9% of its GDP as of 2021.
This encourages innovation in high-growth sectors like clean energy, biotech, and fintech. This environment also creates a favorable environment for startups.
Strategic Access to Different Markets
Innovation for Business
Establishing a business in Singapore is a streamlined process, particularly for global organisations.
Choosing the Right Business Structure: Many foreign companies prefer to establish a Private Limited Company in Singapore. This organisational model provides limited liability protection and enables the subsidiary to function as a distinct legal entity, separate from its parent company.
Next, the organisation needs to register with the Accounting and Corporate Regulatory Authority (ACRA). This process includes:
- Approving the company name
- Submitting the documents
- Licensing specific to sectors like finance or healthcare
The third step involves opening a corporate bank account, which involves formal paperwork. Organisations need to obtain the incorporation certificate, provide the details of the shareholders, and present the business plan.
Professional Support for Setting up a Business in Singapore
Singapore stands out as a compelling destination for global investors and professionals, thanks to its vibrant business landscape and strategic geographic location. As of June 2024, the nation’s population has grown to 6.04 million, with non-residents—including expatriates, foreign workers, and international students—making up about 30.8% of this figure.
The country’s strong residency programs enable easy travel across Asia, creating numerous opportunities for regional projects and collaborations. This ease of access significantly bolsters Singapore’s status as a prime hub for multinational enterprises.
Naturally, global investors are looking to establish their presence in Singapore. Professional consultancy experts like the IMC Group provide comprehensive support during company formation in Singapore, streamlining the process for entrepreneurs and foreign organisations. For startups and established businesses, this professional assistance is crucial to gain legal clarity and ensure compliance while setting up a business in Singapore.
