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Best Grants for Businesses in Singapore

5 min read|Last Updated: August 1, 2024|

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.

Singapore Office Gif

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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A company is deemed exempt from audits in Singapore, which means these companies will not need to appoint an auditor to have their accounts audited. However, they need to qualify to be a ‘small’ company based on at least 2 of these 3 criteria:

  1. Revenue not exceeding SGD 10 million for the financial year.
  2. Total assets not exceeding SGD 10 million at the end of the financial year.
  3. Number of employees not exceeding 50.

Despite such small companies are exempt from auditing, they still need to prepare accurate financial statements that comply with the standards in Singapore.

Auditing Practices in Singapore

  1. Enhances Credibility And Trust
    By providing independent assurance of the accuracy and reliability of a company’s financial statements, auditing helps to build credibility and trust with investors, creditors, and other stakeholders. This can lead to increased confidence in the company’s financial position and ultimately support its long-term success.
  2. Improves Financial Management
    Auditing provides valuable insights into a company’s financial health, which can help your managers make better decisions and improve financial management practices. This in turn leads to improved efficiency, better use of resources, and ultimately better financial results.
  3. Ensures Compliance With Regulations
    Auditing helps to ensure that a company complies with regulatory requirements and industry standards. By ensuring compliance with regulations, your company will be able to avoid legal and financial penalties and operate in a responsible and ethical manner.
  4. Helps Detect And Prevent Fraud
    Auditors are trained to identify and investigate fraud and other irregularities, which will definitely help you avoid any fraudulent activities in a company. This is especially important for maintaining the integrity of financial reporting and ensuring that stakeholders have accurate information to make informed decisio

ACRA
ACRA is Singapore’s business regulator. It ensures a trusted business environment by overseeing companies, accountants, and corporate service providers. Its functions include registration, financial reporting, auditing, governance, and disclosure. ACRA’s online platform, BizFile+, simplifies business processes.

IRAS
IRAS is Singapore’s tax authority. It assesses, collects, and refunds taxes. IRAS also educates taxpayers and investigates non-compliance. The MyIRAS portal offers online tax services.

Auditing in Singapore
In essence, ACRA sets the rules, and IRAS enforces them. Both agencies work together to maintain the integrity of financial reporting and ensure that companies are operating within the law. This is essential for investors, lenders, and other stakeholders who rely on accurate financial information.

certified audit partner logo

Paul Hype Page provides you with strategic business expansion and business compliance services for over 2 decades, servicing the best of the South East Asia region. We make your entrepreneurial experience seamless for both locals and foreign expats.

We can issue an IRAS-approved audit report that meets both the Singapore government’s requirements and your company’s needs. The audit function of your company is in good hands with our professional Singapore-certified auditors.

Our audit services in Singapore consist of a vast variety to cater to the specific needs of your organization.

  1. Annual Financial Audit
  2. Special Purpose Audit
  3. Certification for Subsidy Claim
  4. Audit
  5. Fixed Assets Certification
  6. Claim Certification
  7. Shares Certification
  8. Personal Income Certification

Foreigners looking to incorporate a company in Singapore must appoint a nominee director (local director) as required by ACRA regulations. A nominee director acts on behalf of the business owner but does not hold ownership or management control.

For Employment Pass (EP) holders, nominee director services allow for a smooth transition of ownership once the EP is approved. Options include Short-Term Nominee Director (STND) services for 2 or 6 months, ensuring compliance while awaiting EP approval.

If you are a foreigner, you cannot be the director of the company unless you have an Employment Pass also known as an EP. This renewable work visa permits you to live and work in Singapore, whether you’re an employee, business owner, or anything in between.

It’s the most popular choice for foreigners looking to start a business or relocate to Singapore.

First, You will have to incorporate your company under the name of a local Singapore director (Nominee Director). Then, you will have to apply EPass under your company so that we can transfer the ownership to you under your Employment Pass (EP).

The estimated timeline for the Singapore EP application is between 2-4 months, depending on the case. In some instances, it could drag up to 6 months if multiple rounds of appeals are requested.

Singapore Employment Pass (EP) – Eligibility & Benefits

The Singapore Employment Pass (EP) is a work visa for foreign professionals, managers, and executives relocating to Singapore.

Eligibility Criteria

You can apply for an EP if you:
✔️ Have a job offer in a managerial, executive, or specialized role from a Singapore company
✔️ Earn a minimum fixed salary of S$5,000/month
✔️ Hold a recognized diploma or degree from a reputable university
✔️ Possess specialist skills, professional qualifications, or relevant work experience
✔️ Score at least 40 points under the COMPASS framework

Why Apply for an Employment Pass?

✅ Legally live and work in Singapore
✅ Hassle-free travel without requiring an entry visa
✅ Potential pathway to Permanent Residency
✅ Flexibility to start and manage your own business
✅ Benefit from Singapore’s low tax rates

Are you a business owner in Singapore looking to expand your operations and reach new markets? Considering entry into a new market or expanding an existing one overseas? The MRA grant offers the financial boost you need to make it happen.

The purpose of the MRA grant is to support Singapore owned businesses for business development, promotion, and set-up costs when you set up a business in oversea.

At least 30% of the company’s equity must be held directly or indirectly by Singapore Permanent Residents (PRs) or citizens, determined by ultimate individual ownership.

The grant covers up to 50% of eligible costs for Local SMEs, with specific caps for different activities and limited to a maximum of S$100,000 per new market and may include:

  • Overseas Market Promotion (capped at S$20,000)
  • Overseas Business Development (capped at S$50,000)
  • Overseas Market Set-up (capped at S$30,000)

Currently, from April 1, 2023 to March 31, 2025, the grant covers up to 50% of eligible costs, capped at S$100,000.

If you are planning to establish a business in Singapore, opening a corporate bank account is a mandatory step upon incorporation. A dedicated corporate account ensures that business transactions remain separate from personal finances, allowing for clearer cash flow management, accurate income tracking, and efficient expense monitoring.

Our focus is to demonstrate your company’s tax substance and assist in selecting a banking solution tailored to your business needs. Most importantly, you do not need to be physically present—we collaborate with our trusted banking partners to enhance your chances of a successful corporate account opening.

If you are a foreigner, you will need a nominee director (local director) to incorporate your company in Singapore.

What is a Nominee Director?

Nominee director is an individual who is appointed to act as a director of the company on behalf of another individual or entity. For all foreigners establishing businesses in Singapore, having a nominee director is essential due to regulations from the Accounting & Corporate Regulatory Authority (ACRA).

There are 2 types of Nominee Director services in Singapore.

They are:

  • Long term Nominee Director (LTND) : 12 months
  • Short Term Nominee Director (STND) : 2 months and 6 months

If you are a foreigner, you cannot be the director of the company unless you have an Employment Pass.

First, You will have to incorporate your company under the name of a local Singapore director (Nominee Director). Then, you will have to apply EPass under your company so that we can transfer the ownership to you under your Employment Pass (EP).

What is Singapore Employment Pass?

Singapore Employment Pass, often referred to as the ‘EP,’ a work visa is issued to foreign professionals, managers, executives, and experts relocating to work in Singapore.

The estimated timeline for the Singapore EP application is between 2-4 months, depending on the case. In some instances, it could drag up to 6 months if multiple rounds of appeals are requested.

Check Your Company Name through ACRA using our free tool!

The requirements for registering a company in Singapore are simple and straightforward. They are:

At least one local resident director

Both Singapore residents and foreigners can serve as directors of a Singapore company, provided there is at least one director who is a Singapore resident.

At least one shareholder

To register a company in Singapore, you need at least one shareholder who can be a person or another company. You can have up to 50 shareholders, and all of them can be foreigners.

Local company secretary

Every Singapore company must have a company secretary who lives in Singapore and is responsible for ensuring the company meets its regulatory requirements and submits necessary filings.

Minimum of $1 Paid up Capital

You can establish your Singapore company with just $1 in paid up capital and share capital. If needed, you can add more funds later and inform the company registrar.

Registered Address in Singapore

Your company needs a registered address in Singapore where all the official documents will be sent to ; a PO box isn’t acceptable.
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