Tuesday, April 30, 2013

Company Formation In Singapore: The GIP

By Eri San


Foreign companies are attracted to Singapore due to its business-friendly government and its strategic position in Asia and Southeast Asia. For those looking into increasing their brand, Singapore provides endless opportunities with its competitive business landscape.

For foreigners thinking about starting businesses in Singapore, the numerous programmes the government is implementing are worth noting. One of these is the Global Investor Programme or GIP, which was crafted to make putting up a business a breeze for foreigners.

Contact Singapore, an alliance between the Ministry of Manpower and the Singapore Economic Development Board, is behind the implementation of the Global Investor Programme. The GIPs major purpose is to link foreign investors interested in Singapore to reputable business networks, making company formation in Singapore more straightforward. Apart from this, the initiative also makes it possible for foreign nationals to arrange for their immigration requirements.

Investors have two possible options: the first one entails investing a minimum of S$2.5 million into a brand-new business endeavour, or else to an existent one. The other option, meanwhile, entails an investment of the same amount to a GIP fund, which will in turn invest in one of the existing companies in the country.

One must note that if one opts for the GIP, one must secure approval for the programme prior to undergoing other processes like company incorporation. If application to GIP is successful, and an investor goes for the first investment option, then company incorporation Singapore will follow suit relatively smoothly.

Foreigners must first secure a Permanent Residency status in Singapore as a part of the GIP application, as well as submit requirements as proofs of substantial business track record and entrepreneurial knowledge. A business record of at least three years is a must for all applicants, as well as financial documents for the last 3 years. A minimum of S$200 million as average annual turnover is needed for those belonging to the construction and real estate industries, while S$50 million for the rest.




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