Top 7 Government Grants for Singapore Companies
The startups & SMEs are the powerhouses of Singapore. They employ almost two-thirds of the Singaporean workforce. The authorities really try to support these entities. There are a number of government grants for Singapore companies to help them overcome obstacles in their growth.
Besides the government, SPRING and IE Singapore work through as many as 40 Trade Association and Chambers (TACs) to implement the Local Enterprise and Association Development (LEAD) program. The purpose of the Singapore startup grants is to enable the local businesses in capability upgrading and internationalization.
Singapore Government Grants for SME & Startups
If you are planning company incorporation in Singapore or have an existing business on the verge of exploding into a phenomenal growth, it will be worth your while to go through a few of the Singapore government grants for SME & Startups.
1. ACE Startups
SPRING Singapore is a government agency. It administers the ACE Startups Scheme for the first-time entrepreneurs having an innovative idea. The scheme provides mentorship support and startup capital grant. The Accredited Mentor Partners (AMPs) select applicants. The AMP supports the startups with advice, learning programs, and networking contacts.
Eligibility: First-time entrepreneurs who are Singaporean or Permanent Residents are qualified for the scheme. The criterion for the selection is the uniqueness of business concept, business model feasibility, management team, and potential market value.
How It Works: For your every $3, you will get $7 under ACE. The startup funding amount allowed to Singapore companies under the ACE scheme is capped at $50,000.
2. Capability Development Grant
The Capability Development Grant (CDG) is a scheme for providing financial assistance to startups for building capabilities in ten business areas. They include consultancy, cost of certification, and costs of equipment, and training.
SPRING supports startups that are eager to develop new products under the CDG. They can apply for the grant of up to 70% of costs for new product design, development, and manufacturing processes.
Eligibility: Any Small & Medium Enterprise incorporated & operating in Singapore
How It Works: Startups can qualify for up to 70% of CDG. The grant is capped at $30,000.
Also Read: 5 Things Every Entrepreneur Should Know Before Company Registration Singapore
3. Early-Stage Venture Funding
The Early Stage Venture Fund (ESVF) is a Singaporean initiative to support Innovation and Enterprise. ESVF is the biggest equity scheme by the government which co-funds startups along with Venture Capital (VC) firms. The beneficiaries of this startup funding in Singapore are early-stage technology startups based in Singapore.
The National Research Foundation (NRF) invests S$10 million on a matching basis, to seed corporate venture capital (VC) funds. The VCs have the option to buy NRF’s share within five years.
Eligibility: Startups that are operating in the technology sector in Singapore.
How It Works: National Research Foundation (NRF) co-funds startups up to $10 million with approved VCs. Eligible startups can qualify for up to $3 million in this Singapore startup grants grant.
4. Productivity and Innovation Credit (PIC)
The Inland Revenue Authority of Singapore has a scheme for the Singaporean companies for investments in innovation and productivity improvements. They can enjoy Cash Payout and/or Tax Deduction and receive a PIC Bonus. The scheme covers research & development, registration, acquisition, & in-licensing of intellectual property, cost of automation equipment, training of staff, & approved design projects.
Eligibility: Singaporean companies, sole proprietors
How It Works: Under PIC scheme, businesses get 400% tax deductions on up to $400,000. Or they can opt for 40% cash payout of up to $100,000. The PIC Scheme will expire after Year of Assessment (YA) 2018.
5. Financial Sector Technology and Innovation (FSTI) Scheme
Momentary Authority of Singapore (MAS) launched FSTI scheme to support innovation. It has invested S$225 million in the scheme. The aim of this Singapore startup grant is to enable financial institutions to establish their innovation labs in Singapore & support the development of industry-wide technology infrastructure & innovation solutions.
Eligibility: Singaporean Financial Institutions (FIs) & technology or solution providers working with Singaporean FIs.
How It Works: Under FSTI-Proof of Concept (POC), MAS funds up to 50%-70% of qualifying costs, capped at $200,000, for up to 18 months.
6. Technology Enterprise Commercialization Scheme (TECS)
The TECS is a government grants Singapore to help entrepreneurs realize their technology-based ideas into promising businesses. The scheme assists them in growing their business past the seed stage and then, obtain funding from the third-parties to achieve targeted revenues and growth. The proposals for the grant are ranked solely based on the evaluation of technical idea and its commercial merits. The TECS is highly useful to the startups with strong technology Intellectual Property & business model.
Eligibility: Companies registered in Singapore for less than five years and searching for the breakthrough, IP-based, and commercially viable technological solutions.
How It Works: TECS is a two-tier startup funding Singapore grant. Proof of Concept at $250,000 & Proof of Value at $500,000.
7. ComCare Enterprise Fund
The ComCare Enterprise Fund (CEF) is relatively new government grants for startups, instituted to provide funding to the social entrepreneurs. It is instituted by the Ministry of Social and Family Development. It is aimed at seeding the Social enterprise startups. If the startup has completed two years, it can seek funds for expanding its activities.
Eligibility: Social enterprise startups that hire and train disadvantages Singaporeans.
How It Works: CEF funds up to of 80% of the capital expenditure and operating costs up to $300,000 for the first two years
Singapore knows the important role that its startups and SMEs plays in its economy. The new Singapore company incorporation implementing the innovative ideas try to reach for the future, whereas the existing SMEs act as its backbone. It is natural for the authorities to support these entities with the government grants Singapore. The Singapore government grants for SME & Startups help these entities a lot at different stages in their life-cycle. The support is available in tax exemptions, rebates, cash payouts, or tax deductions.