Singapore, a leading financial epicenter in Southeast Asia, persistently strives to draw the world's most competent professionals and astute entrepreneurs. While it provides the traditional path to residency through investment via the Global Investor Program, this approach, with a substantial minimum investment requirement of around US$7.4 million, is often unattainable for many. The Entrepass Program, another method, is geared explicitly towards innovative start-ups procuring funding from government-recognized venture capital or angel investors.

An often neglected, yet simpler avenue for entrepreneurial residency is via the Singaporean Employment Pass (EP) Visa, which allows residency by employment in one's own company. This work visa has been a common tool for business owners to acquire residency in Singapore. The only prerequisites are to register a company in Singapore and then be employed by it, which subsequently allows the entrepreneur to apply for an EP that offers a two-year residency permit.

The EP route presents an exceptional opportunity for entrepreneurs to tap into Singapore's low tax regime and world-class talent pool, making it an attractive and steady source of talent influx for the city-state.

In recent years, the Singaporean government has revised the EP qualification criteria to further fine-tune the talent it attracts. Last year, the government escalated the minimum salary requirement for EP issuance and introduced a new points-based scheme, the Complementary Assessment (Compass) Framework. This system, which will come into effect on September 1, 2023, constitutes four distinct criteria.

To understand how entrepreneurs can continue to qualify through this system, let's delve into the four Compass factors set by the government:

Compass Factor One - High Salaries

An entrepreneur can fulfill this criterion by assigning themselves a high salary through their own company, thereby easily gaining the maximum number of points under this category.

Compass Factor Two - Qualification

This criterion is contingent on academic achievements. Entrepreneurs with a "Degree Equivalent Qualification" can garner ten points, while credentials from "First Tier Institutions" can earn up to 20 points. Those lacking a relevant degree can enroll in a local Singaporean university to gain additional points.

Compass Factor Three - Diversity

This factor encourages diversity in hiring practices. By employing staff of varied ethnicities and nationalities, entrepreneurs can accumulate more points. The greater the diversity in a company, the higher the points earned, with a maximum of 20.

Compass Factor Four - Local Employment

The Singaporean government encourages foreign investment that stimulates local employment. Accordingly, the more local staff a firm hires, the more points it earns, with a cap of 20 points.

Additional "bonus points" are offered to entrepreneurs operating within the government's key industry (shortage) list, including Public-Private Partnerships (PPPs) engaged in ambitious investments, innovation, internationalization, or business and workforce transformation activities.

The four Compass factors are relatively straightforward, and entrepreneurs should be able to accumulate the necessary points to meet the minimum requirement. By ensuring a high salary and hiring diverse staff, they can gain points from two different Compass factors.

A strong academic background is desirable, but not compulsory. Entrepreneurs can make up for this by earning points in other categories, especially if their business operates in one of the key shortage areas.

Singapore offers a unique opportunity for those seeking to conduct global business from one of the world's most dynamic economic hubs. The EP Compass scheme has facilitated this process, making the application much more straightforward than anticipated.

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