Setting up a company in Singapore has many advantages – one of which is having government support through various types of grants for higher chances of business success. From productivity, digital transformation & business growth grants to Covid-19 specific grants, there’s a wide range of grants for Small and Medium Enterprises (SMEs) to leverage on.

Doing Business in Singapore

There are many reasons why entrepreneurs are choosing Singapore as their destination for doing business. Some of the reasons include:

  1. Availability of grants – accelerate business growth
  2. 100% company ownership – full control over your company
  3. Ease of setting up a company – only takes 1 day to register and incorporate a business
  4. Talent hub – open immigration policy to attract global talents
  5. Strategic location – gateway to Southeast Asia and Australia
  6. Tax friendly – corporate tax rate in Singapore is capped at 17%

Bringing these reasons and more together, Singapore currently ranks 2nd in the world when it comes to ease of doing business and 4th in ease of starting a business.

Angela - Chief Marketing Officer
TIP: Ready to incorporate a company in Singapore? Use our own incorporation platform, iBizFile, and in just 3 steps, you can finish the registration process – all done within 15 mins!

What Are the Government Grants for SMEs & Start-Ups

SMEs in Singapore are companies who fulfil the following main criteria:

  • Registered and running operations in Singapore
  • 30% minimum local shareholding
  • 200 workers and below OR annual sales turnover under S$100 million
Angela - Chief Marketing Officer
NOTE: To apply and be eligible for these grants as a foreign-owned company, you will need at least a Singapore citizen or Permanent Resident (PR) sharing ownership.

While these are the main criteria, it is advisable to check on the specific grant that you are interested in applying for to understand the full benefits and criteria.

Some of the business grants in Singapore are:

  • Productivity Solutions Grant (PSG) – up to 80% subsidy

    The PSG Grant helps companies to kickstart their digitalisation journey through adoption of IT solutions to improve and automate existing processes.

  • Enterprise Development Grant (EDG) – up to 80% subsidy

    The EDG grant aims to improve business efficiency by upgrading, innovating or preparing them to venture overseas.

  • Land Productivity Grant (LPG) – between 10% to 70% subsidy

    The LPG grant is designed for companies who wish to optimise land use through relocating – either locally or overseas, covering relocation, manpower, and consultancy costs.

  • Market Readiness Assistance Grant (MRA) – Up to 70% subsidy, capped at S$100K per new market

    The MRA grant is targeted at companies who are looking to expand their business overseas, covering costs for overseas market promotion, overseas business development, and overseas market set-up.

  • SkillsFuture Enterprise Credit (SFEC) – One-time S$10K credit

    The SFEC grant helps enterprises to empower their employees with upskilling initiatives to increase their capabilities.

  • Startup SG Founder – startup capital grant of S$50K

    There are 2 tracks under this grant:

    • Train track – 3-month programmes with venture builders and accredited mentor partners
    • Start track – those with business ideas in mind can reach out to the accredited mentor partners under Enterprise Singapore directly
  • Startup SG Tech

    This grant is to help accelerate the development of proprietary technology solutions while supporting the growth of startups based on these technologies.

  • SME Working Capital Loan – Up to S$1 million available for borrowing

    The SME Working Capital Loan allows startups the opportunity to have monetary funds to power their business idea at every stage of growth.

Starting A Business in Singapore

The Singapore government has been a great support system for SMEs, especially in times of uncertainty and market downturn. These initiatives and grants certainly ease the financial burden and help to speed up the growth of these businesses, with the idea of creating an ecosystem of competitive businesses to channel economic growth in the long run.

Whether you are a foreigner or local looking to start a business in Singapore, Singapore is a great place to set up your company.

Take a look at our incorporation checklist and find out more about the incorporation process here or reach out to us for a free consultation today!

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FAQs

Can a foreigner start a business in Singapore?2020-10-28T12:12:49+08:00

Yes, you can start and operate a business in Singapore as a foreigner as long as you meet all the requirements. 

What are the steps involved in the company registration in Singapore?2020-10-28T12:12:15+08:00

The 3 steps involved in the registration of the Singapore Company are as follows:

  • Choosing your business name
  • Present all the documents and meet the requirements for the company registration
  • Open a bank account for your company
What is the fastest way that I can start a business in Singapore?2020-10-28T12:11:49+08:00

The fastest way to start your business in Singapore is to get help from the service provider. If you want to quick and sure way, then work with the service provider to help you comply with the ACRA requirements is definitely a right move. 

Is the process of starting a business in Singapore complicated?2020-10-28T12:11:34+08:00

The process of starting a business in Singapore is fast and straightforward. It only takes a maximum of 3 working days to start your business in Singapore, regardless you are local or foreigner. 

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