One of the many reasons that entrepreneurs and business owners alike are attracted to Singapore is because of its favorable business environment and conditions. The government bodies, institutions, and foundations in Singapore have been introducing a wide range of policies in an effort to grow and nurture the nation-state’s business landscape, and this support often comes in the form of government grants and various support schemes.
Types of Incentive Programs
Grants
Grants are offered by different Singapore government entities, organizations, and charitable foundations and can serve as valuable resources to upgrade, innovate, and expand your business among other things. While some grants are given to companies in advance, others are given as reimbursements once a certain project has successfully been completed.
Regardless, grants don’t require any form of repayment and are simply given to provide additional financial support for businesses. The following are some examples of grants given to Singaporean companies.
Startup SG Tech
This incentive program provides local Singaporean tech companies and startups with early-stage financial support to accelerate the development, production, and commercialization of technological innovations.
Under this grant, companies will receive funding for the following projects:
- Proof of Concept: Aimed to test that the new technology being developed is technically and scientifically sound. These projects can receive funding of at most SGD 250,000 depending on the stage of development of the technology.
- Proof of Viability: Aimed to test the commercial feasibility of a newly developed and approved technology. These projects can receive funding of at most SGD 500,000 depending on the stage of development of the technology.
Market Readiness Assistance Grant
The Market Readiness Assistance Grant is meant to help small and medium enterprises that are looking to expand their operations to overseas markets for the first time. With this grant, companies can receive funding to compensate up to 70% of their total spending for the launch, with a limit of SGD 100,000. This financial support can be broken down into the following categories:
- Overseas market promotion (SGD 20,000): Activities that aim to enhance the company’s brand visibility and awareness within the target market.
- Overseas business development (SGD 50,000): Activities that help the company secure new business opportunities in the target market.
- Overseas market setup (SGD 30,000): Activities that help the company establish a presence in the target market.
Companies that are interested in applying should keep the following factors in mind:
- Each grant application is only limited to one activity overseas
- Companies don’t have to choose from a pre-approved list of vendors and are free to explore their options regarding this
- Companies that have submitted applications need to undergo an audit by an auditor from EnterpriseSG’s panel, and this may entail additional costs and requirements
Tax Credits
This incentive program includes tax deductions and tax allowances, with the former lowering the taxable income and the latter allowing the company to earn more income that isn’t subject to income tax. This incentive scheme is granted to companies that are involved in certain activities that contribute to the public benefit. The following is an example of grants given under this program.
Pioneer Certificate Incentive and Development and Expansion Incentive
This incentive aims to encourage companies to expand their capabilities by conducting new or existing activities within Singapore. Approved companies will be eligible for a 5% corporate tax exemption or a concessionary tax rate of 10% on income from qualifying activities. This incentive period can only last for at most five years, but extensions may be considered depending on the company’s commitment to further expand its plans.
Loans
Loans are often offered by Singapore banks or other financial institutions for different purposes such as the development of new capabilities and products or the expansion of a business overseas. This program offers much more appealing conditions compared to normal loans such as higher loan amounts, lower interest rates, and longer repayment periods.
Enterprise Financing Scheme
This incentive helps companies and businesses acquire loans for a wide range of business needs, with these companies standing to borrow up to SGD 50 million depending on the type of loan they choose to avail. The types of loans offered include the following:
- Green: Finances projects that support green growth
- Trade Loan: Finances trade requirements
- SME Working Capital: Financially supports daily operations
- Project Loan: Finances any activity that aims to fulfill secured projects overseas
- Mergers and Acquisitions Loan: Finances the acquisition of enterprises
- SME Fixed Assets Loan: Finances the purchasing of fixed assets within Singapore or overseas
- Venture Debt: Finances innovative enterprises with venture debt and warrants
Equity Participation
This incentive program refers to the investment of capital into your company by either the government or other private organizations, allowing these bodies to have a stake and share in your business. This program is open to startups that deal with innovative technologies that align with Singapore’s national priorities, as well as companies that aim to produce plant-based products or reduce plastic, waste, water, pollution, and more.
Startup SG Equity
Under this program, the government and other private investment partners will invest in startups that need higher funding and more time to become available to the general public. Here’s what you can expect:
- Startups improving existing technologies: The government will cover over 70% of the initial investment amounting to SGD 250,000. Afterward, the government will match every dollar that the private partners invest, so long as it stays within an SGD 2 million limit.
- Deep tech startups: The government will cover over 70% of the initial SGD 500,000 investment. Afterward, the government will match every dollar that the private partners invest, so long as it stays within an SGD 4 million limit. Should this exceed this limit, the government will co-invest up to SGD 8 million in a 3:7 ratio.
Generation Food Fund
This is a private fund launched by Big Idea Ventures that aims to support and accelerate technology companies that are developing capabilities to reduce plastic waste, water use, and carbon emissions involved in the food industry. This fund offers startups and companies up to SGD 750,000 in co-investments.
New Protein Fund
This fund aims to support companies that are developing plant-based snacks and substitutes for meat, seafood, and dairy products. This support is given to companies that are in the early stages of growth, with eligible startups standing to earn up to SGD 750,000 in co-investments.
Effortless Incorporation with WealthBridge
These are only some examples of the various grants and support schemes in place to support companies and startups, but most of these are only available to businesses that have been incorporated in Singapore. The process of registering a company in Singapore involves many stages and steps that can seem confusing, but WealthBridge is here to help you along the way.
Our professional team has years of experience incorporating businesses across different industries in Singapore. Let WealthBridge handle all the paperwork so that you can continue focusing on growing your dream.
Click to learn more about our incorporation services today!