Governement Grants for Restaurants

What are the Various Government Grants for Restaurants Singapore? Steps to apply for Grants.

Introduction

Strong trade and investment along with various grants from the Government attracts lots of startups to Singapore. It is the easiest place to do business.

Content

  1. Checklist to open a restaurant?
  2. Benefits of starting a business in Singapore
  3. Grants available in Singapore for Restaurants
  4. Eligibility criteria for the Grants
  5. Steps to apply for the Grants
government grants for restaurants in singapore

To open a restaurant a checklist needs to be fulfilled, the checklist is as follows

  • Incorporation of a company
  • Identifying the location
  • Planning permission for premises to be used as restaurant
  • Comply with the code of practise of environment health
  • Apply for Food shop license
  • Sign a tenancy Agreement
  • Meet the basic fire safety standards
  • Hire good staff
  • Import ingredients if necessary
  • Get other necessary certifications

Starting a business in Singapore is easy owing to the ease in operation and the flexibility in operations. The benefits of starting a business in Singapore are

  • Robust economy
  • Attractive tax system
  • Avoidance of double taxation
  • 100 percent Foreign ownership
  • Ease of incorporation and operation
  • Support for startups in the form of grants

This blog is mainly to discuss the different grants that are given by the Government to restaurants

There are 5 main grants given by the Government for Restaurants

Productivity Solutions Grant80 percent
Hawkers Productivity Grant80 percent
Enterprise Development Grant80 percent
Capability Development packsProvide SME with delivery platforms
Digital Resilience BonusUpto 10K

Eligibility Criteria for the Grants

For Productivity Solutions Grant

  • Be registered and operating in Singapore
  • Holds a minimum of 30% local share
  • Company annual sales turnover ≤ S$100 Million or ≤ 200 employees
  •  Purchased/ Leased technology solutions and equipment must be utilizing it Singapore

For      

To be eligible for HPG, hawkers must:

  • Be a registered stallholder and a valid hawker license issued by NEA/SFA
  • Possess a valid Tenancy Agreement with NEA with a remaining tendency of 1 year or more.
  • Comply with all regulations required from NEA

For Enterprise Development Grant

To qualify for the EDG, you need to:

  • Be a business entity registered and operating in Singapore
  • Have a minimum of 30% local shareholding
  • Be in a financially viable position to start and complete the project

For Capability Development packs

  • Must be registered and operating in Singapore
  • Sale of food must be consumed within premises
  • Holds a minimum of 30% local shares
  • Have the financial capabilities to see through the end of the project

For Digital Resilience Bonus

To be eligible for DRB, F&B businesses must fulfill both

(i) Paynow Corporate 

(ii) PEPPOL e-invoicing

How to apply for the Grants

There is a very self explanatory process for application of Grants. Grants are to be applied  in the Business portal using the Company Corpass/ singpass login Id and password.  Following the simple steps mentioned in the login the application needs to be submitted. The user can track the application. The IMDA or the Government authorities can raise queries which will be informed to be user via their registered email. Upon all the queries being answered the IMDA approves the Grant and sends the letter of approval over to the registered email address. The application process is explained below.

Eligibility Criteria for the Grants in Singapore

Conclusion

Though Restaurant Business is a highly competitive business, by directing your investments in the right channel you can gain back in the shortest time span in a place like Singapore.

How the Government Grants help the business in Singapore?

How the Government Grants help the business in Singapore

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.

3. PACT

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;

  1. Overseas business trips
  2. Overseas trade fairs
  3. Market surveys
  4. Investment feasibility
  5. 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.

Conclusion

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.

For more details, please visit our website: Moiboo Software

Call Us for more queries: +65 9895 1817