Singapore Residency for Entrepreneurs: EntrePass, EP and Global Investor Programme

Singapore consistently ranks as one of the world's most attractive jurisdictions for entrepreneurs seeking a stable, low-tax residency base in Asia. The city-state offers three primary routes for business owners and investors: the EntrePass for startup founders, the Employment Pass for executives of established companies, and the Global Investor Programme for high-net-worth investors. Each route carries distinct requirements, processing timelines and long-term implications.

The EntrePass: For Startup Founders

The EntrePass is administered by the Ministry of Manpower (MOM) and is designed for foreign entrepreneurs who wish to start and operate a new business in Singapore. It was overhauled in September 2023 with significantly tightened criteria.

Eligibility Requirements (Post-September 2023)

Applicants must meet at least one of the following innovativeness criteria:

• Venture-backed: The company has received investment from a Singapore-based venture capital fund or business angel network that is accredited by the government.
• Incubator/accelerator-backed: The company is supported by a government-recognised incubator or accelerator (such as those under the Startup SG Accelerator programme).
• Government grant holder: The applicant holds a grant under a Singapore government scheme (e.g., Startup SG Founder, Enterprise Development Grant).
• Significant IP ownership: The company owns intellectual property registered with an approved IP office and relevant to the business.

Key Conditions

• The company must be registered with ACRA (Accounting and Corporate Regulatory Authority) as a private limited company for fewer than six months at the time of application, or not yet incorporated.
• The applicant must hold at least 30% equity in the company.
• The company's paid-up capital must be at least SGD 50,000, deposited in a Singapore corporate bank account.
• The pass is initially issued for one year, renewable for two-year periods subject to business milestones.

Renewal Milestones

At each renewal, MOM assesses whether the business has met quantitative benchmarks:

• Total business expenditure of at least SGD 100,000 in the first year
• Hiring of at least one local employee (Singapore citizen or permanent resident) in the first year
• Revenue growth trajectory aligned with the business plan submitted

Failure to meet these milestones results in non-renewal, which means loss of residency.

The Employment Pass: For Executives and Senior Professionals

The Employment Pass (EP) is Singapore's primary work visa for professionals, managers and executives. Since September 2023, the EP operates under a two-stage framework: a minimum salary threshold and the Complementarity Assessment Framework (COMPASS).

Salary Thresholds (2025)

• General applicants: SGD 5,600 per month minimum (SGD 5,000 for financial services)
• Applicants aged 45 and above: progressively higher thresholds, reaching SGD 10,700+ per month
• The salary must be a fixed monthly amount; variable components (bonuses, commissions) are excluded

COMPASS Framework

COMPASS is a points-based assessment that scores applicants across four foundational criteria and two bonus criteria:

• Salary: Benchmarked against local PMET salaries for the same sector and age band
• Qualifications: Points awarded for degrees from recognised institutions
• Diversity: Points if the applicant's nationality is underrepresented among the employer's EP holders
• Support for local employment: Points if the employer's proportion of local PMETs meets or exceeds the sector median

Applicants must score at least 40 points. The practical effect is that simply meeting the salary threshold is no longer sufficient.

Self-Employment via EP

Business owners who wish to employ themselves through their own Singapore company can apply for an EP. The company must be registered with ACRA and demonstrate genuine business activity. MOM scrutinises self-sponsored EP applications closely and will reject those that appear to be shell arrangements designed solely to obtain residency.

The Global Investor Programme (GIP): For High-Net-Worth Investors

The GIP is administered by the Economic Development Board (EDB) and is Singapore's closest equivalent to a residency-by-investment programme. It grants Singapore Permanent Residency (PR) directly, bypassing the usual multi-year EP-to-PR pathway.

Investment Options (Revised March 2023)

• Option A: Invest SGD 10,000,000 (increased from SGD 2.5M) in a new business entity or expansion of an existing business in Singapore. The business must operate in an approved industry (manufacturing, services, technology) and meet specified employment and expenditure benchmarks.
• Option B: Invest SGD 25,000,000 in a GIP-approved fund that invests in Singapore-based companies.
• Option C: Invest SGD 50,000,000 in a new or existing single-family office in Singapore with AUM of at least SGD 200,000,000. The family office must deploy at least SGD 50,000,000 in approved local investments.

Eligibility Requirements

• At least three years of entrepreneurial and business track record
• Business turnover of at least SGD 200,000,000 per year (most recent year) for applicants under Option A, or at least SGD 500,000,000 per year for applicants under Options B and C
• The business must be in an approved industry sector
• Established family offices must have AUM of at least SGD 500,000,000

Processing and Outcome

• Processing time: 6-12 months
• Successful applicants receive a Letter of Approval, conditional on completing the investment within 6 months
• PR status is granted once the investment is verified
• The PR is subject to a Re-Entry Permit (REP) that must be renewed every 3-5 years; renewal requires demonstration that the investment conditions continue to be met

Singapore Permanent Residency via the Standard Route

EP holders may apply for PR after residing in Singapore for at least two years. PR applications are assessed by the Immigration & Checkpoints Authority (ICA) on a discretionary basis. Key factors include:

• Length of residence in Singapore
• Employment stability and income level
• Tax contributions
• Family ties (Singaporean spouse, school-age children in local schools)
• Community integration

There is no guaranteed timeline, but approval rates are highest for applicants who have held an EP for 3-5 years, earn above-median salaries, and have children enrolled in Singapore schools.

Tax Implications of Singapore Residency

Singapore's personal income tax rates are progressive, reaching a maximum of 24% (increased from 22% for income exceeding SGD 1,000,000 from Year of Assessment 2024 under Budget 2023). However, several features make the regime attractive:

• Territorial taxation: Singapore taxes income on a source and remittance basis. Foreign-sourced income is taxable only when remitted to Singapore, with exemptions for foreign-sourced dividends, branch profits and service income meeting certain conditions under Section 13(8) of the Income Tax Act.
• No capital gains tax: Singapore does not impose CGT. Gains from the sale of shares, property (other than those deemed trading) and other capital assets are not taxed.
• No inheritance or estate tax: Abolished in 2008.
• Tax treaties: Singapore has over 90 comprehensive double taxation agreements.

Practical Considerations

• Banking: Singapore banks (DBS, OCBC, UOB) require substantial AML/KYC documentation. Non-resident account opening is increasingly difficult; holding an EP or PR significantly eases the process.
• Cost of living: Singapore is consistently ranked among the top five most expensive cities globally. Rental costs for a two-bedroom apartment in the central districts range from SGD 4,000-8,000 per month.
• Healthcare: Singapore operates a mixed public-private healthcare system. EP holders are not eligible for government subsidies; private health insurance is essential.
• Dependant passes: EP and EntrePass holders earning at least SGD 6,000 per month may apply for Dependant's Passes for spouse and children under 21.

Key Takeaways

• Singapore's EntrePass requires genuine innovation credentials (VC backing, incubator support, government grants, or significant IP) and is no longer accessible to conventional business owners.
• The Employment Pass now operates under COMPASS, a points-based system where salary alone is insufficient; qualifications, employer diversity and local hiring record all matter.
• The Global Investor Programme grants direct PR but requires SGD 10M-50M in investment with business turnover thresholds of SGD 200M-500M per year. It is designed for ultra-high-net-worth individuals and family offices.
• Singapore's territorial tax system, absence of capital gains tax and zero estate duty make it one of the most tax-efficient residency bases in Asia, but the cost of living is among the highest globally.
• PR renewal requires ongoing satisfaction of investment and presence conditions; it is not a one-time acquisition.
• Professional guidance on immigration category selection, COMPASS scoring optimisation and tax structuring is strongly recommended before committing to any route.