Detailed Explanation of Why Singapore PIC Self-Employment Immigration is Unreliable

Singapore PIC (Private Investment Company) is a concept that has evolved in the immigration industry to address the issue of some Self-Employed EP applicants lacking clear business operation plans, commonly known as a "small family office." While many people are interested in PIC, in reality, it is not a formal immigration pathway and has no official policy support. As the Singapore government strengthens its management of Self-Employed EP, the PIC model is facing increasing problems and risks.

1. The Nature of Singapore PIC

1. Non-official concept: First, it needs to be clear that Singapore PIC is not an official immigration policy. The Singapore government has never issued any official statement regarding PIC. This concept evolved within the immigration industry, mainly to help Self-Employed EP applicants who lack clear business plans.
2. A variant of Self-Employed EP: The essence of PIC is Self-Employed EP. It was initially established to help Self-Employed EP applicants who had no business operation ideas. These applicants deposit funds into a company and conduct investment management in the company's name to replace traditional business operation requirements.
3. Investment management replacing business: The core idea of PIC is to deposit funds in a private investment company and conduct investment management through the company rather than engaging in actual business operations. This model aims to bypass the business operation requirements of Singapore Self-Employed EP.

2. Risks of the Singapore PIC Model

1. Lack of business operation support: The PIC model does not require companies to conduct actual business, which means they usually cannot provide documents required for business activities, such as customer contracts, invoices, bank statements, or office lease agreements. This lack of actual business operations means that PIC companies are unlikely to be considered actively operating companies by the Ministry of Manpower (MOM).
2. Enhanced scrutiny by MOM: Since early 2024, the Ministry of Manpower (MOM) has increased spot checks on approved Self-Employed EP companies, requiring proof that the company has begun actual operations. For PIC companies, this means they will struggle to pass the review as they lack supporting materials for actual business. Therefore, PIC Self-Employed EP holders face the risk of having their EP cancelled.
3. Tax issues with investment returns: The logic of PIC is to place funds in a company and invest in the company's name. However, since Singapore has no capital gains tax, even if profits are generated through investment, no tax needs to be paid. While this may seem like an advantage, it actually increases the risk of PIC not being considered a valid business. Companies without tax records are usually considered to have no actual operations, which will adversely affect EP renewal and future PR applications.
4. Unfavorable for renewal and PR applications: Since the PIC model pays no taxes and employs no staff, when renewing EP or applying for Singapore Permanent Resident (PR) status, such companies typically cannot meet the Singapore government's requirements for business stability and socio-economic contribution. Renewal becomes difficult, with risks of EP cancellation; and during the PR application process, stable business and contribution to the local economy are key factors, so PIC applicants have extremely low PR application success rates.

3. Current Status and Prospects of Singapore PIC Model

1. Increased risks in 2024: In early 2024, the Ministry of Manpower (MOM) began increasing spot checks on Self-Employed EP companies, especially targeting those without actual operations. For Self-Employed EP holders relying on the PIC model, this means greater risk. If companies cannot provide valid operational proof, such as customer contracts, invoices, or other business documents, the EP may be cancelled.
2. Changing attitudes of local service providers: Due to significantly increased risks, local service providers in Singapore have gradually stopped recommending PIC services since early 2024. This model is now widely considered unreliable and even poses significant legal and immigration risks. However, some agencies in China, due to delayed information, are still recommending this business model, which misleads potential applicants.

4. Summary of Why Singapore PIC is Unreliable

In summary, Singapore PIC immigration is not reliable. Although it once provided a way for some Self-Employed EP applicants to bypass business operation requirements, with the Singapore government's enhanced scrutiny, the tax-free nature of investment returns, and the lack of long-term business operations, PIC faces increasing risks. Especially in 2024, as the Ministry of Manpower (MOM) has strengthened inspections of Self-Employed EP holders, many PIC companies cannot provide evidence of actual operations and face the risk of EP cancellation.

For those considering immigrating to Singapore through Self-Employed EP, choosing to actually operate a business and conduct legitimate commercial operations is obviously a more prudent approach. Through formal, sustainable business operations, applicants can not only smoothly renew their EP but also increase their PR application success rate. Therefore, the Singapore PIC model is no longer a reliable immigration pathway, and potential applicants should choose carefully.