Singapore is a business-friendly system due to the grants and incentives are available for the companies to grow their business.
There are six major grants and incentives that the companies can opt for;
1. Productivity Solutions Grant
Productivity Solutions Grant came into effect in April 2018. The PSG grant funds up to 70% of the cost for qualifying activities under the retail, food, logistics, Engineering, wholesale, Construction, Landscaping etc.
It is used by businesses to support the use of solutions in financial management, inventory tracking, customer management, data analytics etc.
The PSG grant supports small businesses by making funds available to them for upgrading their business.
2. Enterprise Development Grant
- This grant supports the Singapore business in the areas of
- Market and business development
- Innovation and productivity
- Core functions and capability
To qualify the business must be a local company registered in Singapore having at least 30% of the local shareholding and having an annual turnover of $100 Million or having at least 200 employees.
The Grant offers up to 70% of funding support. This grant helps new business explore innovative production. It helps in making the business a profitable venture, it helps the business enjoy higher savings during the first few years of its establishment.
This Grant aims at enhancing collaboration between large multinationals and local companies. This grant encourages small and medium-sized businesses to partner with each other to facilitate business innovation and growth. The grant funds 70% for SME and 50% for non-SME.
The companies need not restrict themselves. The small businesses can benefit from the networking and experience of the larger companies.
The larger companies that act as the lead companies need to be registered in Singapore and the smaller companies can be either local or foreign companies.
4. Double tax deduction for Internationalization
It encourages businesses to move towards international expansion and internationalization. The businesses are entitled to a 200% tax deduction up to $150,000 on expenses for these activities.
The activities are limited to the following;
- Overseas business trips
- Overseas trade fairs
- Market surveys
- Investment feasibility
- Expenses of Singaporean staff.
This grant helps to reduce the tax burden of the companies and make the businesses have more money in their hands.
5. Market Readiness Assistance Grant
This Grant was established to access overseas opportunities. The Grant provides 70% support.
It helps in the following areas;
- Market set up overseas.
- Identifying partners, licenses, agents etc.
- Market promotion
The headquarters of the company should be in Singapore with an annual turnover of 100 million or 200 employees.
IT helps the business to expand internationally.
6. Venture Debt Programme
This government grants help the companies to access loans up to $5million for project financing, asset financing and acquisition purposes. This grant helps the business to set up and expand their business. This grant was initiated for small Singaporean businesses to be eligible for a loan. The requirement is 30% local ownership and less than 200 employees.
The grants and incentives provided by the Government make Singapore a business-friendly regime. The new grants are targeted towards specific needs of Singapore business.
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