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:
- Availability of grants – accelerate business growth
- 100% company ownership – full control over your company
- Ease of setting up a company – only takes 1 day to register and incorporate a business
- Talent hub – open immigration policy to attract global talents
- Strategic location – gateway to Southeast Asia and Australia
- 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.
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
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.
FAQs
Yes, you can start and operate a business in Singapore as a foreigner as long as you meet all the requirements.
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
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.
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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