If you think about Singapore, it is one of the beautiful places for tourism. It is estimated that nearly 18 million tourists visited Singapore in 2018. Additionally, there is one more specialty of Singapore.
YES! Starting a business in Singapore. Singapore stands second (after New Zealand) best country to start the business. Apart from this there are also various Business grants available in Singapore to help businesses.
Here are the reasons for it
1. Business-Friendly Place for Startups: We all know that Singapore is located in South-East Asia. The country is located close to India and China trade markets that pave the way for traders to start a company in this location. The second significant reason for businesses to start their business in Singapore would be the Changi Airport. YES, this International airport is connected with nearly 300 cities. This will undoubtedly assist the traders in developing their trade in many locations.
2. Supporting Legal System: Singapore has strong and stable corporate laws that support the business in the country. The Singapore Companies Act is strongly regulating the company’s formation, shareholder policies, rights and also the company’s structure. Companies can rely on these corporate laws that incorporate the employment act; data protect act, and competition act.
3. Grants Available in Singapore: This is considered as one of the niche benefits for businesses to start a trade in the country. Seeing this point in detail will help the budding companies to handle their trade in Singapore. Read further to know about the bunch of grants that are available in Singapore. And how the business can get benefited via the same.
Some of the Start-up Grants in Singapore:
Before getting into the details, one must know that all the startup grants in Singapore are covered under one roof named “Startup SG.” Now we can look into those schemes one after the other.
– Startup SG Founder: If the business owner comes with a really creative and unique business idea, then they can benefit from this grant. If the trade idea has the potential to withstand the market competition, then mentorship costs and the capital amount will be provided to the entrepreneurs. The startup SG fund will be given in two settlements within one year of the business. Moreover, mentorship assistance and networking support is also provided during that period for the business to reach the milestone. However, one must carefully check the eligibility criteria to apply for getting this startup SG fund in Singapore. The candidate applying for this fund must be a Singapore citizen or must have the residential address in Singapore. Secondly, the applicant must not have applied for any other fund from any other government. The predominant functional operations of the startup company must be held in Singapore.
Startup SG Tech: As per the name, the main aim of this scheme is to develop the technology-based business. The grant offered for SG tech is to bring technologies into business modules. Here, the scheme is divided into two segments, namely – POC (Proof of Concept) and POV (Proof of Value). In the first stage (POC), the entrepreneurs must develop innovative technology to develop a strong business. One cannot apply for this scheme only with baseless ideas or fundamental research. The technical idea must be in-depth and also the details about how the innovative technology is going to help the business. In the second phase (POV), the technical protocol must be developed for the working environment.
– Startup SG Equity: This is one of the co-investment schemes launched by the Singapore government for the startup companies. There are different eligibility criteria for startups and investors to apply for startup SG equity grants in Singapore. The startup must not be under joint venture or any subsidiary to apply for this grant. Secondly, the business must not get involved in law violations. That is, the investors must not involve anything that troubles the public interest (like gambling etc.).
– Startup SG Talent: Technically talented people must be involved in business for betterment. Right? And this grant insists on the same. If you are skilful and have talent, and are trying to start a business in Singapore, you can apply for a startup SG talent grant in Singapore. The three pillars of this grant are EntrePass, T-Up and STP (SME Talent Programme). The first pillar that is EntrePass supports the talents you are awaiting to start a trade-in in Singapore. The second pillar (T-UP) can be utilized to handle research and development for business projects. The time duration is for two years. The grant includes several business areas to explore, including microelectronics, data storage, info-communications, medical technology etc. The STP stage of the grant involves the young generation to get internships with the startups.
– Startup SG Loan: The government offers loans to start the business, the capital amount required for buying the equipment and also for running the trade. There are two pillars, which include SME Microloan and SME Venture loans. The company must have less than 10 employees. And the company must be operating in Singapore. The businesses must repay the amount within 4 years of time.
Recently many small & medium enterprises are emerging in Singapore. Below given are some of the grants available in Singapore for SMEs.
Enterprise Development Grant:
Every business has goals to expand their trade overseas by developing multiple branches across the globe. For this, the traders must understand the market, tips to build their trade according to the market trend and in-depth knowledge about the technologies. The EDG (Enterprise Development Grant) supports the traders in multiple ways. Companies in Singapore can utilize the EDG and grow effortlessly.
There are three EDG pillars that assist in expanding your trade – market access, creativeness & development and the core strength. If you are planning to expand the business roots overseas, then you can tap the help from EDG market access. Secondly, via innovation, the companies in Singapore can gain knowledge about the specific areas of business development. And also, best possible ways to increase the production drastically. Finally, apart from basic business functionalities, the trade must improve its core ability. By improvising the core capabilities via the EDG grants available in Singapore, the business can excel in various aspects.
PSG (Productivity Solutions Grant):
Technology plays a vital role in developing trade. It drives the business on the right path and also paves the way for success. The productivity solutions grant of Singapore is one such miracle that supports the businesses to expand their technical knowledge and lead them to production enhancement. PSG in Singapore is available for various sectors that include construction, food, retail industry etc. And looking into the industry-specific PSG – it is available in multiple streamlines like data and financial management, customer support solutions, inventory etc.
The productivity solutions grant of Singapore is controlled by the government companies, including NEA (National Environmental Agency), STB (Singapore Tourism Board) and Enterprise Singapore. Below are the eligibility criteria for adopting the PSG, given by Enterprise Singapore.
– If you have registered your trade in Singapore.
– You must hold a minimum of 30% shares in Singapore.
– Companies turnover and the number of employees working in the company is also given in the eligibility criteria. The total number of employees must be within 200. And the yearly turnover must not exceed S$100 million.
Here we have mentioned how to apply PSG in Singapore.
MRA Grant in Singapore:
If you are looking for opportunities to expand your SME overseas, then this MRA grant is the right choice. Similar to other grants, MRA also has a set of eligibility criteria. The business must be registered, or it must be incorporated in Singapore. The rest of the criteria are similar to other grants of Singapore. Additionally, the business must be new to develop its trade globally.
Now you may have a query whether your trade matches the qualities for overseas trade development. Let us look into that. If your trade has an annual turnover of S$100,000 (or below) for the past three years, then your business is eligible for a market readiness assistance grant in Singapore.
LPG (Land Productivity Grant in Singapore):
The land productivity grant is specifically for trades that want relocation domestically. Via this grant, the company can get upto 70% of the money support that is required for relocating the business. The LPG grant supports the traders by giving the costs that are required to shift the equipment or the machinery to the new location. However, this does NOT include the taxes and the land buying costs. The LPG grant also covers the costs for market and location study.
There are many other grants in Singapore that support the business growth of social enterprises, like the VFG (Venture for Good) grant. And BIF (Business Improvement Fund) for developing the trade related to tourism.
As bottom-line, if you are applying for any of the grants in Singapore, know about the eligibility criteria. If your trade matches those criteria, then proceed further. Moreover, you must have the appropriate documents required for submitting for grant approval. After the approval, the company must take initiatives to develop the trade as per the grant terms. Getting legal consultation from lawyers will also help you to start a firm that abides by the lawsuit.