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Company Formation In Singapore: Government Incentives And Grants You Can Take When Incorporating A Business In Singapore

Company incorporation, which simply means company formation in Singapore is a great way to establish a presence in one of the most vibrant and dynamic economies in the world. In fact, Singapore is ranked second in the ease of doing business category due to the efficiency and opportunities provided within the city-state by the World Bank’s Doing Business report 2020.

Read Also: Hong Kong Or Singapore: Which Is Better For Company Incorporation In 2023?

Government incentives and grants are available to facilitate business registration in Singapore on the right foot. As a globally renowned business hub, Singapore offers a supportive environment for businesses of all sizes and sectors, making it an attractive destination for entrepreneurs and businesses alike. The Singapore government provides various grants and incentives to help businesses get off the ground and facilitate their growth.

Breakdown of the Different Grants and Incentives Available in Singapore

Grants and incentives are an important part of the economic system as they help stimulate economic activity. Thus, having an understanding of the various grants and incentives available is essential for a successful company formation in Singapore. However, as with any policy, we understand that comprehending the extensive types of grants and incentives can be difficult. Hence, we will be discussing some of the common grants and incentives available in Singapore and how entrepreneurs can leverage them to greatly benefit their businesses.

  • Startup SG Founder

The Start-up Support Grant Fund (SSGF) Provides a unique opportunity for first-time entrepreneurs to gain access to financial aid and mentorship. Accredited Mentors provide mentorship to entrepreneurs in the early stages of business development, a critical stage for the success of any venture. With SSGF, first-time founders have the potential to benefit from startup grants and gain valuable insights from experienced mentors. These mentors are knowledgeable in the industry, providing guidance and advice on a range of topics from marketing strategies to financial management. This support can help to reduce the risk associated with starting a business and increase the chance of success. Additionally, the SSGF grants are designed to help entrepreneurs get started and provide ongoing financial assistance as the business grows.

  • SkillsFuture Enterprise Credit

The Singapore government is providing a one-time credit of S$10,000 for eligible employers to facilitate enterprise transformation and employee capability development through the SkilssFuture Enterprise Credit (SFEC) movement. This incentive is intended to support businesses in transitioning to new processes and technologies, as well as to enhance their employees’ skills and capabilities to stay competitive in the changing business landscape. The SFEC can be used to cover up to 90% of expenses related to the supported initiatives for which the employer has not previously received support from any other schemes. This credit will enable employers to access key resources at a fraction of their original cost and make their transformation efforts more cost-effective and attainable.

  • Early Stage Venture Fund

The Early Stage Venture Fund (ESVF) is part of the National Framework for Innovation and Enterprise (NFIE), a government-led initiative to promote Singapore’s economic growth and resilience. Under the NFIE, the National Research Foundation (NRF) provides seed funding to venture capital firms with the purpose of investing in innovative, Singapore-based technology start-ups in their early stages. This is part of a larger effort to create a vibrant and sustainable innovation ecosystem in Singapore, with the ultimate goal of positioning the country as a leader in the global tech industry. By leveraging the NRF’s seed funding, venture capital firms are able to provide start-ups with essential resources, such as capital, mentorship, and access to the vast network they possess.

Comparison of the Eligibility of the Different types of Grants Available

Types of grants and the respective eligibility
Startup SG FounderSkillsFuture Enterprise Credit
Applicants must be:Singaporeans and Permanent residentsFirst-time foundersAble to fully commit to the company (not engaged in studies or part-time)
The company should:

Not be receiving funding from another government bodyNot be a recipient of the SSGF grantUndergone entrepreneurship trainingHave not undergone business registration/incorporated your business in Singapore for less than 6 months

More information can be found here.
Applicants must be:
Employers that have employed at least 3 Singaporeans or Permanent Residents (PRs) every monthEmployers are first-time qualifiers for the SFEC

More information can be found here.

Read Also: How Can A Foreign Business Smoothly Undergo Company Incorporation In Singapore Within A Day?

Seek Professional Advice from Experienced Professionals to Better Understand Company Formation in Singapore

As such, forming a company in Singapore is a wise decision for entrepreneurs who want to set up a business in the country. The Singapore government provides many attractive incentives and grants which can help entrepreneurs get their businesses off the ground. Companies which take up these grants and incentives will be able to enjoy a more favourable business environment and a competitive edge in the market.

It is also important to remember that incorporating a business in Singapore requires a thorough understanding of the relevant laws and regulations, so seeking professional advice from experienced professionals is a must. PikoHANA positions itself as an expert in providing the necessary guidance and services to help aspiring Singapore entrepreneurs with company registration in Singapore. With an all-in-one concierge service that assists in all aspects of company incorporation, PikoHANA should be your best choice when choosing a company incorporation service in Singapore.

To start your journey with PikoHana today, click here.