Best Grants for Businesses in Singapore

5 min read|Last Updated: July 4, 2024|

What’s in this article

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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. Regardless of whether you are a local or a foreigner, the Singapore government has grants that drive your business expansion directions for your company growth. Small and Medium-sized Enterprises (SMEs) can leverage these grants for businesses to defray their costs of initial setup, digital marketing promotions, market entry and market development. While there are many grants the Singapore government has initiated, there are a few key points all business owners must know before diving into the world of government funding.

Being a Business Owner in Singapore

There are several reasons why entrepreneurs are choosing Singapore as their destination for doing business. Singapore remains one of the top countries worldwide for ease of doing business, economic competitiveness, human resource capital, global connectivity and much more.

There are also multiple benefits a business owner can get in Singapore. Many of these are provided access due to the country’s developed infrastructure, supportive government, and business-friendly regulatory environment offers a fertile ground for sustainable business growth. These benefits are listed below.

Availability of Grants for Businesses

A business owner starting up or incorporating in Singapore can gain access to the plethora of government grants aimed at Singapore businesses to accelerate their business growth. The Singapore government is very supportive of getting companies to start up and expand as well as incorporate in the country. Additionally, this can drive your business growth by defraying costs, some even up to SGD$100,000 coverage per new market.

100% Company Ownership

You can gain full control over your company when setting up or incorporating your business in Singapore. Moreover, while there are several steps to follow when gaining full control of your company, you can appoint a third-party firm to manage and handle all the paperwork for you.

Ease of Setting Up a Company

Setting up or incorporating a company in Singapore is easily accessible, it only takes 1 day to register and incorporate your business into the Singapore business world. You can then start your expansion in Singapore to grow your market coverage and expand your customer base.

Talent Hub & Strategic Location

Singapore is a talent hub for global talent, and setting up your business here will open immigration policies to attract global human resources due to Singapore’s strategic economic position. In addition, you can easily hire talents within Singapore along with setting up your company.

The strategic location of the country also opens up a gateway to Southeast Asia and Australia. By incorporating your company in Singapore, you can gain access to easily expand and explore new markets that are outside of Singapore to drive your exponential business growth.

Tax-Friendly

Singapore’s corporate tax rate is also very attractive for businesses looking to expand as it is capped at 17%. This means that businesses can expand with improved cash flow, reduced costs, and enhanced profitability. Consequently, by freeing up more capital through the low corporate tax rate, businesses can divert the additional funds for business expansion purposes. Furthermore, Singapore currently ranks 2nd in the world when it comes to ease of doing business and 4th in ease of starting a business.

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

What Are The Grants for Businesses in the SME & Start-Up Sector?

SMEs in Singapore are companies that 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

Before applying, be sure to review the specific requirements of the grant you’re interested in. This will ensure you understand all the benefits and eligibility criteria.

Market Readiness Assistance Grant (MRA) – Up to 50% subsidy, capped at S$100K per new market

The MRA grant is one of many grants for businesses that are targeted at companies that are looking to expand their business overseas, covering costs for overseas market promotion, overseas business development, and overseas market set-up. Speak to us today for MRA grant consultancy.

Productivity Solutions Grant (PSG) – up to 50% subsidy

The PSG Grant helps companies kickstart their digitalisation journey through the 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 helps companies optimize land use by covering relocation costs (local or overseas), manpower expenses, and consultancy fees.

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 tracks – 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 or Incorporating Your Business in Singapore

In conclusion, the Singapore government has been a great support system for SMEs, especially in times of uncertainty and market downturn. Certainly, these initiatives and grants ease the financial burden and help to speed up the growth of these businesses. Creating an economic direction by developing an ecosystem of competitive businesses to channel economic growth in the long run.

FAQs

Are these overseas expansion grants available to companies that have operations in Singapore but are headquartered elsewhere?2024-07-02T11:05:51+08:00

No, the grants are to spur companies on to embark on overseas expansion. As such, costs incurred from activities that occur in Singapore will not be qualified for such grants.

Is a firm allowed to apply for both types of Singapore grants for overseas expansion (MRA grant and EDG)?2021-03-29T10:20:53+08:00

Yes, qualifying firms are allowed to apply for both grants to help with their overseas expansion, provided that they are not for the same field of work or services.

Is it possible to apply for these overseas expansion grants for more than one country simultaneously?2021-03-29T10:20:10+08:00

Yes, provided that it the eligibility conditions are met and the limit for the grant is not exceeded.

Is there a limit to the number of applications for such Singapore grants for overseas expansion?2021-03-29T10:11:48+08:00

No, there isn’t a limit for such applications. This is to enable firms to have their own liberty in deciding their approach into foreign markets.

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