We are optimistic that the enhanced GIP, coupled with the AITD, will attract bigger players who are committed to growing Singapore-based businesses and are keen to see them through.
Singapore (PRWEB) April 18, 2012
In spite of doubts surrounding the newly-enhanced Global Investor Program (GIP), Singapore company registration specialist, Rikvin, is optimistic that the Program’s higher eligibility requirements will attract committed investors who will in turn benefit businesses that have opted to form a Singapore company.
As discussed in our previous press release, the Global Investor Program (GIP) will be the sole scheme for foreign entrepreneurs and investors to attain Singapore permanent residency with effect of 1 May 2012.
Just recently, Contact Singapore, a collaboration between the Singapore Economic Development Board (EDB) and the Ministry of Manpower (MOM), has announced tighter requirements for foreign entrepreneurs to apply for the Singapore permanent resident status via the GIP.
In gist, the requirements include 1) higher revenue thresholds for all sectors and 2) tighter residency requirements, in case of renewals.
The appended table (Annex A) illustrates the differences between the requirements for an application under the GIP before and after it was enhanced.
Analysis by Rikvin shows that in spite of the higher requirements, the Global Investor Program will attract candidates who are keen on taking part in Asia’s growth story, are committed to catalyzing Singapore company setup as well as stimulating economic growth in Asia’s business epicenter.
Further analysis by Rikvin shows that the higher requirements do not come without “respite.” Singapore also offers tax incentives to eligible GIP candidates via the Angel Investors Tax Deduction (AITD) scheme. According to SPRING Singapore, AITD grants an approved angel tax deduction that is worth 50% of the invested amount after a 2-year holding period.
Mr. Satish Bakhda, Head of Rikvin’s Operations, said, “It is often during the IRS or IRAS tax deadline periods that entrepreneurs and key decision makers think of ways to reduce their tax payments for the following year.
“We are optimistic that the enhanced GIP, coupled with the AITD, will attract bigger players who are committed to growing Singapore-based businesses and are keen to see them through.”
“Additionally, we are optimistic that this will, over the long term, inspire more entrepreneurs to consider Singapore company formation and take advantage of the increased access to capital,” affirmed Mr. Bakhda.
For fourteen years, Rikvin has partnered with foreign investors, entrepreneurs and professionals in their pursuit to access the limitless opportunities Singapore has to offer. Rikvin’s areas of expertise include Singapore company incorporation, offshore company setup, accounting, taxation and other related corporate services. Rikvin also provides Singapore employment pass and immigration services for foreign professionals wishing to relocate to Singapore.
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
(65) 6320 1888