Successful case study: Low investment threshold. Analysis of Singapore’s most popular way of immigration: self-employed EP immigration
From setting up your own company in Singapore, appling for an Employment Pass (EP) as a director, to applying for permanent residence in Singapore through your EP status. This is the hottest way of Singapore immigration – the self-employed EP immigration.
In contrast to GIP immigration, which the high net worth individuals and families can only obtain. Self-employed EP immigration, although it cannot be achieved in a singular phase, has a small investment amount, low threshold and high approval rate, thus becoming the best choice for most people to immigrate to Singapore. It is through this project that Mr. X successfully obtained the EP.
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The venturing story of Mr. X
Mr. X majored in financial management in a domestic financial university, and later studied abroad for a master’s degree. After graduation, he returned to China and work in Shanghai. With the accumulation of work experience and the increase of wealth, Mr. X yearns for a larger career platform. He sets his eyes on Singapore, the world trade and financial center.
After learning about Mr. X’s situation and needs, Go Global Gem has provided a tailored-made overseas immigration plans for him. He chose the most suitable way of immigration – self-employed EP immigration. It only took 5 working days for his EP to be approved.
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An analysis of the Singapore self-employed EP
1. What is the Employment Pass?
The Singapore Self-employed Employment Pass is a special visa for elite foreigners who come to Singapore to set-up and work in companies. The applicant comes to Singapore to set up a new company and take up an executive position in a Singapore company in the form of self-employment. Legally, in this form of entrepreneurial self-employment, the applicant can obtain the Singapore Self-employed EP.
2. Investment requirement
Companies registered in Singapore need to have an office address and employees, as well as a balance of income in line with the scope of business (there is no rigid requirement on the company’s profits).
3. Application conditions
Based on our practical experience and successful cases, applicants who meet the following basic requirements will have the opportunity to apply for Singapore self-employed EP.
- The applicant is working for or holding a company (not limited to Chinese companies) which has been established for at least 3 years and employs not less than three (3) local Singaporeans.
- The applicant having a college degree or above, a certified and verified part-time degree or a college degree or below through the China Higher Education Information and Career Center, and have investment experience or special achievements;
- Applicant has been a senior management/shareholder for at least one (1) year in the company (not limited to Chinese companies) he/she serves or holds which has an annual turnover of 5 million.
Note: For newly registered companies in Singapore, the applicant can hold 100% shares; The scope of operation of the Singapore company is related to the parent company.
4. Application process
- Sign the service contract with Go Global Gem;
- Complete the registration of the company and bank account opening;
- Complete the leasing of office space;
- Submit the EP application;
- Obtain the approval letter IPA in principle;
- Apply for a EP card in Singapore.
Note: The whole application period is about 2 to 3 months
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Advantages of setting up a company in Singapore
1. Lower taxes and many tax deductions
Companies in Singapore only have to file corporate income tax once a year, which is levied on profits at a rate of just 17%; There is no capital gains tax, shareholders of Singapore companies are allowed to enjoy a number of tax advantages, such as dividend income exemption, making Singapore an ideal base for companies to expand in the Asian market.
2. Free trade with ASEAN advantages
As a member of ASEAN, Singapore has zero tariff free trade among the 10 ASEAN member states, making it easier for its products or services to enter the markets of China, ASEAN and the United States, effectively breaking through international trade barriers.
3. Exemption from double taxation
The Singapore Government has signed more than 40 Investment Guarantee Agreements (IGAs) to protect Singapore-incorporated companies from non-commercial risks in other countries and regions.
Data source: Singapore Economic Development Board
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Advantages of the Singapore Self-employed EP
There are many mainstream ways to immigrate to Singapore, including the Global Investor Program, Family Office program, Overseas Art Talent Immigration, employer-sponsored immigration and others. Compared with them, the advantages of self-employment EP project are as follows:
Low cost. No age, industry, schedule, language, source of funds and other requirements;
Singapore passport is highly valuable and can visit 192 countries and regions visa-free;
No immigration supervision:
There is no residence restriction. EP holders can enter and exit at any time. It is more convenient to enter and exit Singapore with a Singapore identity;
Short application period:
EP process is relatively simple, with a short application period and high approval rate;
Naturalization is simple:
You can apply for naturalization after two and a half years of residence in Singapore within five years of obtaining permanent residence.
Rich educational resources, bilingual teaching, IB program scores ranked among the top in the world;
Your spouse and children can apply for a Dependant’s Pass, and your parents can apply for a Long Term Visit Pass.
Convenient and worry free:
We provide a full range of company operation solutions and you won’t worry a bit;
Strong sense of belonging:
The majority of Singaporeans are Chinese (74.3% as of 2021), and English is the official lingua franca.
There is no requirement on the turnover and profit of the Singapore company, as long as the company operates normally;
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Who the self-employed EP is for
1. People who expand overseas trade and domestic business at the same time
Singapore has an excellent geographical location, with the largest free trade network in Asia, radiating Southeast Asia, Europe and even the world, which is very suitable for business. Singapore is the best springboard for business people who yearn to expand abroad.
2. People looking for a simple tax system
Singapore has a simple and low tax system for regional taxation. Corporate income tax tops at 17 percent, and individual income tax tops at 22 percent. No tax on foreign income, no estate tax, no capital gains tax, no shareholder dividend tax, and zero tariffs on most goods! Many High-Net-Worth Individuals choose to immigrate to Singapore with their whole family. At the same time, they will relocate their assets to Singapore to reduce the operating costs of enterprises.
3. People with frequent travel needs
Singapore citizenship requirements are simple. You can apply for citizenship after two years of permanent residence status, without any immigration supervision! Singapore passport caters to provide visa-free access to 192 countries and regions, including Europe, America, Japan, Korea, China and so on.
Upon successful approval of the Singapore EP, you can stay in Singapore indefinitely within the validity period of your EP, including your family members. When entering and leaving the country, you can take the electronic channel with your EP and Chinese passport. This means that you are able to use the self-service customs clearance without needing to queue with the immigration officer
4. People who cannot meet the requirements of immigration supervision in major countries
Many entrepreneurs whose businesses are based mainly at home cannot meet the requirements of immigration supervision in major countries. However, there is no immigration supervision in Singapore and no legal residence requirement for either EP or permanent residence through EP. We would generally advise EP or permanent resident holders to maintain a certain amount of work or study in Singapore as a foundation and those who set up companies in Singapore to manage their time in their Singapore companies.
5. People who value their children’s education
Singapore implements bilingual education combining Mother Tongue and English, which enables children to immerse themselves in a pure English learning environment at an early age without giving up their mother tongue. Singapore institutions adopt the Anglo-Cambridge system of education. Children receive education in line with international standards at a young age and can easily apply to British and American famous schools.
6. People who are not good at foreign languages and yearn for a stress-free living environment
Most of Singapore’s population is Chinese, so there is no problem with Chinese exclusion. The primary language of communication is still Chinese, and there is no language barrier.
7. People who wish to move to Singapore quickly
The overall application period for EP is no more than three months. You can apply for a Long-term Visit Pass for your spouse, children and your parents at the same time, so that your whole family can settle in Singapore quickly. EP holders may further apply for Singapore Green Card after meeting certain conditions.
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Since the epidemic’s long-term impact in the past three years, Singapore suffered a severe loss of foreign population. The fertility rate of local residents continued to decline, resulting in a sharp decline in the total population. In May this year, Singapore phased out its entry control and entered the “recruitment mode,” significantly letting go of the time and approval rate of the EP application. In our EP cases, most EP applications were approved in only 3 working days.
At the same time, Singapore is also optimizing the EP distribution criteria. From September 1, 2023, all EP applications submitted must pass the Complementarity Assessment Framework (COMPASS). The policy will likely exclude applicants with a college degree or less. Now EP application is at a critical point. Please seize the opportunity to do identity planning as soon as possible.