Outline
- Every Startup’s Starter Pack, The Six Pillars of Startup SG
- Challenges Foreigners Face as Startup Founders
- The Five Stages of Singapore Startups
- 6 Methods of Funding Singapore Startups
- Shares 101: Understanding Shares and Stamp Duty in the Singapore Context for Startups and Small Businesses
- FAQs on shares and stamp duties in Singapore Startups
Singapore Startup Guide: Funding, Support, and Shares
Singapore has one of the most innovative startup ecosystems in Asia, offering a thriving community of incubators, accelerators, venture capitalists, and government programs. Entrepreneurs setting up startups in Singapore can access funding, mentorship, and growth opportunities to scale their businesses efficiently.
What can you look out for after setting up your Singapore startups?
This guide provides a clear roadmap for Startup SG programs, funding methods, share issuance, and stamp duty regulations in Singapore.
The Six Pillars of Startup SG
Startup SG provides six key pillars to support startups at various stages:
1. Startup SG Founder – Financial Support & Mentorship
Funding: Enterprise Singapore matches $3 for every $1 raised, covering up to 75% of your total capital.
Mentorship/Training: Accredited Mentor Partners (AMP) offer company-specific guidance to refine your business model and operational strategy.
2. Startup SG Tech – Tech-Focused Grants
Targeted at startups in advanced manufacturing, healthcare, biotech, robotics, and ICT, this grant co-invests with private investors. Each investor pledges a minimum of $50,000 and provides guidance to support business growth.
3. Startup SG Equity – Innovation Financing
For startups with proprietary technology:
- Proof-of-Concept (POC): Funding for businesses still at the conceptual stage.
- Proof-of-Value (POV): Funding for companies with commercializable technology.
Eligibility: The proposed technology must be innovative, commercially viable, and proprietary.
4. Startup SG Accelerator – Growth Enablers
Provides grants and resources for incubators and accelerators that mentor startups, offering capital, contacts, and strategic support.
5. Startup SG Talent – Global Talent Attraction
Helps startups attract skilled international talent:
- EntrePass: Enables foreign founders to establish and operate startups in Singapore.
- T-Up: Grants access to researchers from top-tier institutions to support R&D.
Requirements:
- Registered as a local business
- Minimum 30% local shareholding
- ≤200 employees
6. Startup SG Loan – Financing Solutions
Government-backed loans through the Enterprise Financing Scheme include:
- SME Micro Loan: Up to SGD 100,000 for companies with ≤10 employees
- SME Working Capital Loan: Up to SGD 300,000
- Equipment & Factory Loans: Up to SGD 15 million for capital expenditure
Challenges Foreign Founders Face
- Funding Restrictions: Some grants like Startup SG Founder are limited to Singapore Citizens or PRs.
- High Operational Costs: Singapore has higher business costs compared to Malaysia or Indonesia.
- Talent Shortage: Singapore is expanding as a tech hub but faces a talent crunch. Programs like Entrepreneur First can help find co-founders or key hires.
- Limited Manufacturing: Hardware startups may need to test or manufacture products abroad due to Singapore’s high operational costs.
The Five Stages of Singapore Startups
| Stage | Purpose | Funding Focus |
| Seed | First formal equity funding, often from angel investors | Initial product development |
| Series A – Development | Continued growth, reaching key milestones | Hiring, product refinement, market validation |
| Series B – Growth | Expand market reach and operations | Institutional investors, VC |
| Series C – Expansion | Launch new products, enter markets, acquire other startups | Late-stage investors, private equity |
| IPO | Public listing | Raise capital from the general public |
Funding Methods for Singapore Startups
1. Bootstrapping
Self-funding or family/friends support.
Pros: Quick, no equity dilution
Cons: High personal financial risk
2. Crowdfunding
Raise funds online via social media-driven platforms.
Pros: Large audience, unlimited potential
Cons: Requires strong marketing and brand building
3. Angel Investors
High-net-worth individuals providing capital in exchange for equity.
Pros: Funding + business expertise
Cons: Equity dilution
4. Venture Capitalists
Institutional investors supporting growth-stage startups.
Pros: Large funds, networks, mentorship
Cons: Significant equity may be required
5. Incubators & Accelerators
Programs offering mentorship, funding, and business resources.
Pros: Structured guidance
Cons: Competitive application and time-intensive
6. Government Grants
Startup SG programs provide support for R&D, talent acquisition, and market entry.
Shares 101: Understanding Shares and Stamp Duty in the Singapore Context for Startups and Small Businesses
The government has put out several initiatives to aid Singapore startups and small businesses. Scroll above to read more about the initiatives of Startup SG.
Q: Is there a minimum number of shares to be issued?
The minimum issued capital must be at least SGD$1.00, but there is no requirement for minimum paid-up capital. This means you can start a company by issuing only 1 share worth SGD$1.00. In the future, if your company wishes to issue more shares, ie. Increase paid-in capital, you can choose to do so anytime as companies are free to do so after incorporation.
Q: What is the stamp duty rate in Singapore?
Like many countries, Singapore imposes a stamp duty when buying the shares of a company. Stamp duty is a tax on dutiable documents relating to any (immovable) property in Singapore and stocks or shares. In the context of Singapore, stamp duty is 0.2% of the purchase price for share transfer documents.
Q: Methods to pay stamp duty for shares
There are numerous methods to pay stamp duty in Singapore. See below for the full list:
Stamp duty has no installment, it must be paid in full.
Q: Deadlines for Stamp Duty
Document needs to e-Stamp before signing it. No penalties will be charged if the document signed or e-Stamped within the following time frame:
An entrepreneur typically focuses on generating income through business ventures. A startup, by contrast, innovates new solutions or products, aiming to solve problems while scaling the business model.
Yes. Through Startup SG Talent, foreign investors can obtain an EntrePass, enabling work in Singapore to complement local entrepreneurial talent. The T-Up scheme grants access to researchers from top institutions, covering up to 70% of related R&D costs.
• Startup SG: Grants for novice startups, tech startups, and deep-tech companies
• Capability Development Grant & Innovation & Capability Voucher (Enterprise Singapore)
• National Research Foundation (NRF): Seed funding for venture capital investment in startups
Singapore ranks second in Asia as second best when it comes to investments in a startup because of the readily available Government Schemes, Startup Incubators, Angel Investing Networks, Venture Capital Firms, and Private Equity Firms for startups. It worth noting that these startups have excellent innovation and ideas that qualify them for the benefits.
A startup ecosystem includes entrepreneurs, team members, mentors, investors, and advisors. It also involves supporting organizations, such as incubators, service providers, universities, and funding bodies, to help startups grow from concept to market.
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