Factsheet: Global Investor Programme – Family Office 13X Enhanced Tier Scheme

Factsheet

WHAT IS A FAMILY OFFICE?

The term ‘family office’ does not have a fixed definition.

A family office typically refers to an entity which:

(a) manages assets for or on behalf of only 1 family; and

(b) is wholly owned or controlled by members of the same family.

The role of the Family Office is to oversee the day to day administration & management of assets & investments with the goal of preserving wealth and transferring it to the next generation.

Factsheet: Global Investor Programme - Family Office 13X Enhanced Tier Scheme

BENEFITS

Singapore Permanent Residence Status:

Singapore Permanent Residence (“PR”) status under this scheme shall be provided to the applicant and his immediate family (i.e. spouse and unmarried children below 21 years old). The applicant’s unmarried children 21 years of age and above and parents are not eligible to be included in the applicant’s PR application. They may apply for a Long Term Visit Pass (“LTVP”), which is renewable and tied to the validity period of the applicant’s re-entry permit (“REP”).

Tax Exemption:

Under the Tax Incentive Scheme, as long as the prescribed conditions set out are met, the investment fund will be exempted from most forms of Singapore income tax, including the gains or profits realized from the acquisition and the divestment of portfolio investment that might otherwise be taxable as trading income.

QUALIFYING CRITERIA

Applicants:

  • must possess at least 5 years of entrepreneurial, investment or management track record; and
  • must have net investible assets of at least S$200 million (excluding real estate).

net investible assets include all financial assets such as bank deposits, capital market products, collective investment schemes, premiums paid in respect of life insurance policies and other investment products, excluding real estate.

The Singapore Family Office must have a paid-up capital of S$2.5 million.

Singapore Family Office must manage at least S$200 million of which S$50 million must be transferred and held in Singapore.

  • During the interview with Economic Development Board (“EDB”), applicants must show that they have $200 million.
  • During their interview with the Monetary Authority of Singapore (“MAS”), applicants must provide a bank statement to show that S$50 million is held in their private account in Singapore.
  • S$50 million: Bankable assets include cash, securities and other financial assets.

TIME

It will take approximately 12-18 months for a GIP (EDB/MAS) Application to be processed.

RENEWAL CRITERIA

For the first five years, you must fulfill the following requirements to renew your REP:

(A) If you would like a 5 year renewal, you must fulfill all 3 conditions below:-

1. must have fulfilled the investment conditions under the GIP;

2. the company in Singapore must:

    • employ at least 10 employees;
    • employ at least 5 Singaporeans out of all the employees;
    • incurs an annual total business expenditure of at least S$2 million; AND

3. the applicant or his dependents, who obtained PR under the GIP application, must have resided in Singapore for more than half of the time.

(B) If you would like a 3 year renewal, you must fulfil two of the following conditions:

1. must have fulfilled the investment conditions under the GIP; AND

2. the company in Singapore must:

  • employ at least 10 employees;
  • employ at least 5 Singaporeans out of all the employees;
  • incurs an annual total business expenditure of at least S$2 million; OR

3. the applicant or his dependents, who obtained PR under the GIP application, must have resided in Singapore for more than half of the time.

NATIONAL SERVICE

Male children who obtained PR by virtue of being the applicant’s dependent will be liable for National Service (“NS”). Male dependents whose spouse is the main applicant may be liable to serve NS.

Should the child choose to renounce his citizenship to avoid serving NS, the Government may withhold the registration of a declaration if the declaration is made by a person subject to the Enlistment Act unless he has discharged his liability for full-time service under section 12 of that Act.

If the child renounces or loses his PR status without serving/completing full time National Service, this may adversely affect any immediate or future applications of:

  • applications to work, study or live in Singapore;
  • applications for Singapore citizenship or PR status; and
  • applications for the renewal of re-entry permits made by one’s family members or sponsors.

The information contained here is only intended to provide general information on the subject covered. Nothing in this publication should be regarded as constituting legal advice concerning any particular business, operational or other situations with which you might be faced. Further, the law may have changed since first publication and the reader is cautioned accordingly. Please seek professional advice before taking any action.

Chris Chua & Associates LLC

Chris Chua & Associates LLC is a limited liability law corporation with unique entity number: 201826324Z and regulated by the Ministry of Law, Singapore, license number: LSRA/LLC/2018/00019. Its registered office and principal place of business is at 138 Robinson Road, #10-04 Oxley Towers, Singapore 068906.

Based in Singapore, we advise both local and international clients who wish to expand and preserve their business interests and wealth. Our Firm has assisted corporations in establishing and structuring new investments and business ventures in different sectors. We think beyond obvious legal issues and come up with pragmatic solutions to challenging commercial problems.

For more information, kindly visit our website www.ccnalaw.com or contact us at +65-62227500.

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