Introduction To Tech.Pass And Tech@SG
Singapore has emerged as a global hub for digital innovation and tech start-ups – ranked as the 2nd easiest country to do business in globally[1], 5th most innovative economy in the world[2], having the 8th best startup ecosystem globally in 2023[3].
With the 2nd strongest IP regime in the world[4], nationwide digitally driven initiatives, and unparalleled access to the Southeast Asian economy, Singapore is the clear destination for businesses looking to establish or expand their operations. Currently, the city is home to around 5,083 tech startups, including 18 unicorns. It has more than 247 incubators and accelerators, over 400 venture capital managers, and an estimated 1,100 family offices.
The Singapore government drives the acceleration of innovation through a range of incentives and schemes aimed at supporting enterprises, including the Tech.Pass and Tech@SG Programme which this article aims to provide a brief on.
Tech.Pass
The Tech.Pass is a visa which allows established tech entrepreneurs, leaders or experts to reside and work in Singapore. Unlike an Employment Pass (“EP”), which only allows the pass-holder to work at one sponsoring company, Tech.Pass holders can take on multiple roles concurrently.
Additionally, Tech.Pass holders can sponsor dependent visas for their spouse, unmarried children under the age of 21 or parents.
To be eligible for the pass, applicants must satisfy any two of the following conditions:
- Have a last drawn fixed monthly salary in the last year of at least S$22,500 (or the equivalent in a foreign currency).
- Have at least five cumulative years of experience in a leading role in a tech company with a valuation/market cap of at least US$500mil or at least US$30mil funding raised.
- Have at least five cumulative years of experience in a leading role (i.e. made major contributions to the design, development, or deployment), in the development of a tech product that has at least 100,000 monthly active users or at least US$100mil annual revenue.
A Tech.Pass is valid for 2 years, and can be renewed for another 2 years upon meeting renewal criteria 1 or 2 below:
- The pass holder has earned at least S$240,000 in assessable income based on the latest Notice of Assessment from the Inland Revenue Authority of Singapore (can be made up of salaries and/or business income), AND
Can demonstrate total annual business spending of at least S$100,000 and employ at least 1 local professional/manager/executive who earn a fixed monthly salary of at least S$3,900 and received CPF contributions for at least 3 months or 3 Singaporean citizens/permanent residents who earn a fixed monthly salary of at least S$1,400 and receive CPF contributions for at least 3 months.
- At the time of renewal, the pass holder is performing at least two of the following roles, at least one of which must be in Category (A), i.e. two roles in (A) or one role each in (A) and (B):
The Tech.Pass is aimed at promoting frontier and disruptive innovation – enabling those qualified to obtain visas and establish tech companies in Singapore. Alongside allowing leading individuals to come to Singapore, the city has implemented the Tech@SG programme, a parallel scheme for tech companies to build their teams in Singapore and support their expansions.
Tech@SG
Tech@SG programme is administered by two government organizations, the Economic Board of Singapore and Enterprise Singapore. It aims to help fast-growing companies establish their core teams in Singapore and bring aboard skilled foreign talent.
Under the programme, eligible companies are assisted in two aspects:
- Company-level endorsement to the Ministry of Manpower (“MOM”), which reduces rejection risk for Employment Pass (“EP”) applications to MOM; and thereafter,
- Coverage for the first renewal of each new EP obtained via Tech@SG. Each renewal will be valid for up to 3 years.
EP is a work visa which allows foreign nationals to live and work in Singapore, and Tech@SG enables fast-growing companies to support their business growth with the necessary skilled manpower. EPs are typically granted for an initial period of 1 to 2 years, and are eligible for renewal of up to another 3 years each time.
While EPs are typically granted and renewed on the discretion of MOM and assessed on the points-based Complementarity Assessment Framework (“COMPASS”), the endorsement granted through the Tech@SG programme provides lower chances of rejection for applications and renewals.
For the Tech@SG programme, all 4 criteria below must be fulfilled by the applicant company:
- It has incorporated a business entity in Singapore via the Accounting and Corporate Regulatory Authority (“ACRA”).
- It has a digital or technological offering (e.g. big data and analytics, artificial intelligence, cybersecurity etc.) as its core business / service.
- It has secured more than US$10 million (cumulative) in investment funding in the past 36 months
- It has received funding (no minimum amount) from a Tech@SG-recognized investment firm in the past 36 months.
Above requiring the applicant company to meet the its criteria, an individual intending to obtain EP via Tech@SG must also fulfil the 2 criteria below:
- Have a fixed monthly salary that meets MOM’s prevailing salary criteria. The minimum required for an EP is S$5,000, further subject to MOM’s COMPASS framework with effect from 1 September 2023.
- Be considered a core team member with the appropriate functional role (e.g. business development, human resources, finance, product developer, software engineer, data scientist etc.) and level of seniority (i.e. only manager-level and above).
The process can be divided into two portions: 1) obtaining approval of the Tech@SG application from either EDB or Enterprise Singapore, and 2) obtaining approval of each EP.
The first portion involves incorporating a Singapore company (if it has not already been established), setting up a CorpPass account, completion of the Tech@SG application form, finalizing a business plan (including but not limited to headcount and expenditure projections etc.), and providing funding proof. Review by EDB or Enterprise Singapore will take 10 to 15 days to process, notwithstanding any requests for additional information or documents and further time needed by the authorities.
The second portion includes registering an EP Online account (if it has not already been set-up), reviewing and drafting EP applications for employees. Review of each application by MOM will take an estimated 10 days, notwithstanding any requests for additional information or documents and further time needed by MOM.
While EDB and Enterprise SG’s support will end at the earlier of 2 years or after approvals/renewals of 10 EPs, the company will still have access to the authorities’ suite of services to assist with further expansion of operations in Singapore.
Our firm has a breadth of experience helping clients establish businesses in Singapore and advising on work visa applications. Should you require our assistance in navigating the Tech.Pass, Tech@SG and EP applications, please feel free to contact our Business Development team to arrange a meeting with one of our lawyers.
[1] https://data.worldbank.org/indicator/IC.BUS.EASE.XQ
[2] https://www.wipo.int/global_innovation_index/en/2023/
[3] https://startupgenome.com/article/global-startup-ecosystem-ranking-2023-top-30-plus-runners-up
[4] https://www.internationalpropertyrightsindex.org/countries