- NEWSLETTER,OMAN
- August 11, 2022
With an accelerating economic growth rate indicated by data relating to the major financial indicators of 2021 and till May 2022 published by the Ministry of Finance, Oman is rapidly transforming into a vibrant economy under the leadership of His Majesty Sultan Haitham bin Tarik and opening up floodgates of business opportunities for investors in multiple sectors, highlighted Qais Al Yousef, Minister of Commerce, Industry & Investment Promotion in an exclusive interview with Times of Oman.
The Minister noted, “We are too an important centre for industrial innovation and hi-tech start-ups as well as home to established brands that are enjoyed the world over though perhaps not so familiar to consumers at home.”
“Combine all this with excellent transport links, world-class industrial estates, free zones, deep-water ports, awarding-winning airports and globally ranked broadband and internet infrastructure and I think you begin to have a clear picture of why Oman has a distinct competitive advantage,” he said.
Al Yousef also emphasized that today’s Oman is not only known for its energy sector as it has made steady progress in other areas too. The country’s business-friendly environment can offer great opportunities to investors in multiple sectors including tourism, agriculture, logistics, manufacturing, fisheries, healthcare, education, mining and clean energy sectors, the Minister claimed.
He further added, “Having said that, it is not just the business side of Oman that separates us from other destinations. Our cosmopolitan, vibrant community is reflected in Numbeo’s 2022 Quality of Life Index, which ranked Muscat the number two city in Asia and the Middle East for quality of life and 2nd for safety and security.”
During his interview, Al Yousef stressed the importance of quality of life as one of the most important factors for deciding on investment locations and attracting and retaining talents. He said that his government is well aware of this fact and committed to focusing on quality housing, schools, recreational and cultural amenities and healthcare along with the cost of living, transportation, crime and safety and climate.
The Minister also referred to numbeo, the world’s largest cost of living database and described Oman as one of the most hospitable, transparent and attractive places to live in and carry out businesses. He also said that doing business in Oman is easy and simple.
Al Yousef cited the main purpose of the Ministry of Commerce, Industry & Investment Promotion as attracting the global investment and business community towards the huge opportunities offered by Oman in many sectors including manufacturing, tourism, fisheries, mining, logistics and IT.
The minister also highlighted that Climate Change is on the top of the agenda of Vision 2040 and accordingly the National Energy Strategy is being directed toward renewable energy projects focusing on generating 30% of Oman’s electricity demand through carbon-free clean energy by 2030.
The Minister said, “We also know that when investors look at Oman’s potential they consider our economy, connectivity, infrastructure, access to markets, talent pool and lifestyle offer. But experience has shown us that the deciding factor in investment decisions is how agile and business-friendly we are, and how we turn investor aspirations into reality. So our agility in responding to the new demands of a post-COVID-19 world, removing layers of bureaucracy, for example, will be critical to our continuing and future success.”
“And I am pleased to report the new policies that have been put in place are beginning to pay dividends,” the Minister affirmed.
The Minister also explained how Invest Easy, the online platform managed by his Ministry has helped digitize the registration process for company formation in Oman drastically reducing the time for investor transactions.
- NEWSLETTER, QATAR
- August 11, 2022
Qatar is one of the fastest growing economies in the world and attracts high overseas investments in infrastructure, healthcare, education, tourism, and financial services sectors. The FDI inflow rose by 8.2 million USD during the September quarter of 2021.
The World Bank’s 2020 Doing Business Report ranked Qatar as the 3rd best globally with a tax regime offering one of the lowest corporate tax rates,10% in the world with no personal income tax.
Qatar also offers good infrastructure facilities, a lower cost of energy and a cheaper labour force. On the eve of the FIFA World Cup 2022, the Qatar government has also come up with various incentives for local and foreign investors. Qatar remains politically stable with one of the highest per capita incomes in the world. An investment-friendly business ecosystem, full foreign ownership in all sectors, presence of extensive economic zones with a complete tax exemption and repatriation benefits of both capital and profit and stable currency also favour foreign investors in doing business in Qatar.
The increased FDI inflows are largely contributed by the US, Japan, South Korea and Singapore and primarily through foreign company formation in Qatar in the oil and gas, construction, public works and financial services sectors.
As Qatar aims higher in terms of business and foreign investment growth, the government brings in several landmark reforms to facilitate the same. The year 2018 witnessed the government allowing non-Qatari investors to own 100% capital in all sectors and many listed companies on Qatar Stock Exchange increased their foreign ownership limit to 49%.
The government plays a pivotal role in Qatar’s economy by encouraging economic diversification and private investment in many non-oil sectors. The government has also embraced reforms to encourage foreign investment in the economy as part of its National Vision 2030.
Qatar Ministry of Economy and Finance also rolled out a new Public Finance Law (Law No. 2/2015) for optimizing the use of public funds and implementing international best practices and standards in the country’s financial framework. Recent reforms also include the implementation of a regulatory regime to eliminate corruption and anti-competitive practices in the country’s financial system.
Qatar has two free zones namely Ras Bufontas free zone and Umm AlHoul free zone and Qatar Free Zones Authority (QFZA) is responsible for providing foreign investors with business opportunities and benefits. The country also has Qatar Financial Centre and Qatar Science and Technology Park as business facilitation centres and entered into more than 49 bilateral trade and investment agreements.
“Qatar has put tremendous emphasis on developing a sustainable investment ecosystem,” noted Nasser Ali Al-Kaabi, Investor Relations Officer at the Investment Promotion Agency of Qatar (IPA Qatar) during the US Qatar Business Council meeting on June 29.
He also highlighted, “The country has put a large emphasis on developing top notch infrastructure and incentives to ensure foreign investors have what they need to take advantage of the strong domestic market and wider region as well.”
- NEWSLETTER, INDIA
- August 11, 2022
Over the past 3 years, India has witnessed a proliferation of Family Offices with a five-fold jump in the numbers crossing over 200 from a meagre 40.
Family offices are privately held wealth management advisory firms responsible for managing, growing and preserving the wealth of an ultra-rich family and transferring family assets across generations. While a single-family office manages the wealth of one family, a multi-family office handles the wealth of multiple wealthy families. Today, family offices are the fastest-growing investment vehicles across the world and are playing a crucial role in the revival of a country’s economy.
Not so long ago, the majority of Indian family offices preferred to invest in start-ups indirectly by investing their money in venture capital (VC) or private equity (PE) funds or through a limited partnership. However, there has been a visible shift in this trend since 2019 when family offices, grown professionally with higher skills and expertise, are increasingly seen investing in startups via direct stake holding or co-investing with VC/PE funds.
The emerging trend of Indian family offices with soaring participation in direct private investments in the market can be attributed to several reasons including high returns, exposure to innovation and technology, diversification, involvement of younger family members, and value additions. It also made sense for family offices to acquire smaller businesses that can be scaled up more easily without much interference from the founders.
While choosing startups for direct private investments, Indian family offices are mainly focused on professional management, high growth and consistent compounding opportunities and the presence of a strong business moat.
A portfolio survey of family offices revealed that almost half of their investments are made through direct startup and the remaining through VC/PE and debt fund routes. Survey also showed that Indian family offices mostly chose to invest in a startup either during the early seed stage or just before the IPO issuance.
With new tech-savvy members joining Indian family offices, startups are seen as lucrative and viable asset classes offering myriad business opportunities with high-risk adjusted returns. The huge returns recently accrued through startup investments during 2021 also raised the confidence of family offices.
India today has the world’s third largest startup community just after the USA and China and the Indian startups are now exploring fundraising opportunities through Indian family offices.
Though investment in startups involves high risk, it also offers incredibly high returns on investments that can never be realized through the traditional investment classes. The fast-evolving Indian startup ecosystem is attracting more and more family office investment and seeing some famous and large names including Narayana Murthy’s Catamaran Ventures, Ratan Tata’s RNT Associates, Azim Premji’s Premji Invest amongst many others.
In a recent forecast on family office funding in Indian startups, nearly 30% of the total USD 100 billion of startup funding by the year 2025 has been predicted.
Fundraising through family offices can offer an added advantage to the Indian startups compared to VC funding as investments made by family offices, as opposed to VC investments, are not done for any fixed investment cycle and can greatly relieve startup founders of any undue financial stress. Secondly, the investment made by VC involves public knowledge whereas family office investments offer confidentiality and discretion.
There are also several other benefits of being associated with family offices including access to the network of wealthy and high-net-worth individuals, industry expertise and knowledge that are vital and often decide the success and failure of a new business startup.
- NEWSLETTER,U.A.E
- August 11, 2022
As the UAE and Kenya plan to remove trade and investment barriers on a wide range of goods and services to promote non-oil bilateral trade, an agreement has recently been reached between the two nations to launch a Comprehensive Economic Partnership Agreement (CEPA), the first of its kind between the Gulf and an African country.
The UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi and Betty Maina, Cabinet Secretary, Ministry of Industrialisation, Trade and Enterprise Development of Kenya announced CEPA after signing a Joint Statement in Nairobi. The negotiations will begin soon in the coming months.
The economic integration between the two nations will open up huge business opportunities to the importers and exporters in both countries and while the Kenyan companies can benefit from the strategic geographic and logistical position of the United Arab Emirates, the UAE companies can leverage the vast agricultural and other natural resources of Kenya.
The UAE-Kenya non-oil bilateral trade grew to USD 2.3 billion in 2021 and the signing of this CEPA will further enhance the value of trade and investment between Africa and the Middle East. While oil is Kenya’s main import from the UAE; intermediate products, stones and glass, vegetables, consumer goods, and raw materials are the main products that the UAE imports from Kenya. There are many Kenyan entrepreneurs eagerly looking to establish a business base in Dubai and can hire services of a reputed business set up consultants in Dubai to do so.
Kenya is the largest economy in east Africa with a GDP growth forecast of 5.5% in 2022. While agriculture and tourism are the two most dominant and flourishing sectors in the country, financial services and competitive manufacturing sectors do also look promising. Adoption and development of green technology are also high on the agenda of the Kenyan economy.
Dr Thani Al Zeyoudi added, “There is a tremendous opportunity for closer economic integration between our two nations, especially in agriculture, tourism, infrastructure, technology and renewable energy. Announcing our intention to begin negotiations on the UAE-Kenya CEPA reflects our shared commitment to achieving greater economic progress through trade and investment. Our efforts to establish strategic economic partnerships worldwide through our CEPAs will fast-track our growth and prosperity for the next 50 years.”
Before commencing the high-level CEPA negotiations with Kenya, the UAE recently completed three CEPAs this year, namely with India, Israel and Indonesia under the ‘Projects of the 50’ initiative to help grow the national economy by 2.6% by 2030 as noted by Dr Thani earlier.
As highlighted by the Minister of Economy Abdulla bin Touq, the UAE plans to sign a total of 27 similar trade deals for enhancing trade and foreign direct investment into the country and attracting foreign investors for company formation in Dubai UAE.
UAE featured among the top 20 recipients of foreign direct investment during 2021 as FDI inflows increased 4% yearly to USD 20.7 billion.
Kenya is among the 8 countries that the UAE wants to deepen and strengthen ties with. Dubai chamber considers the Kenyan market as a strategic one both for Dubai and the chamber.
- NEWSLETTER,U.A.E
- August 11, 2022
The millionaire community across the globe are increasingly recognizing Dubai as the most preferred place to relocate as the city strives to elevate its status to a global destination for real estate investment.
On July 19 2022, Sheikh Mohammed bin Rashid Al-Maktoum, the Vice President of the UAE and the Ruler of Dubai introduced a new law to promote the growth of real estate investment funds in Dubai and granted certain privileges to these funds under this new law. The privileges set out in this new law will act as incentives for attracting more funds into the emirate, Dubai Media Office revealed.
A real estate fund is one type of mutual fund that mainly invests in securities floated by public real estate companies. A real estate investment trust, however, invests directly in income-generating real estate and is traded like a stock.
All real estate investment funds licensed and regulated in the Emirate of Dubai by government authorities, private development zones and free zones, including Dubai International Financial Center (DIFC) come under this new law. Properties which are located within the premises of the DIFC are excluded from this law.
The new law makes a provision for the establishment of a register, called the Real Estate Investment Funds Register, for registering the details of all qualifying property funds that are to benefit from the privileges outlined in the new decree-law. Dubai Land Department will be the custodian of this investment funds register.
Real estate funds to be eligible for inclusion in the Register, must own not less than AED 180 million (USD 49 million) of real estate assets and should not be suspended from trading in the Dubai Financial market at the time of submission of the application to register. Payment of a fee of AED 10,000 to the Dubai Land Department must be made during the application for such registration. The regulators including Securities and Commodities Authority, and Dubai Financial Services Authority must also issue licenses for these funds.
The property funds registered in the register will be authorized to acquire properties which are located in the designated areas for foreign ownership in the Emirate of Dubai.
The new law mandates the establishment of a Committee for Property Investment Funds which will be responsible for identifying areas and properties that funds are permitted to invest in. The committee grants full ownership and usufruct rights to the registered property funds. These funds may also opt for long-term lease rights, up to 99 years in certain non-designated areas specified by the committee formed under this new law.
Registered property funds will be levied a land transfer fee of 2% based on the market value of the property payable equally by both the buyer and the seller.
As per the new law, the Governor of the DIFC can roll out other privileges in favour of property funds operating within the boundaries of the financial centre.
The founders of a property fund are permitted to make property contributions in-kind if a fee of AED 50,000 is made while transferring ownership from the founders to the property fund.
Dubai Land Department will engage a valuator recognized by the Real Estate Regulatory Agency during property valuation who shall carry out such a valuation as per the guidelines specified by the land department.
The new law came into force on 22 July 2022, the date it was published in the official gazette.
- NEWSLETTER,U.A.E
- August 9, 2022
What is DIFC?
Dubai International Financial Centre (DIFC) is the leading sector-specific commercial business hub and special economic zone in the MEASA region and presently offers services to entrepreneurs and start-ups including technology companies.
The DIFC is the most important international financial centre in the UAE for business, financial technology and lifestyle. The centre was founded in 2004 and over the years has become one of the top 10 financial centres in the world.
Entrepreneurs looking for a technology business setup in Dubai free zone can now explore DIFC financial free zone as it enables tech companies to source better talents and access premium service providers within the centre. DIFC is globally recognized and regarded ranking among the top 8 onshore financial centres across the world. The centre has a diverse ecosystem with a high population of multinational firms, banks, investment funds, wealth management firms and NBFCs.
A Venture Capital Fund Manager regime has been launched by the centre focusing on the co-existence of VC funds and technology companies so that it becomes easier for tech startups in the DIFC to access funding.
What is DIFC Innovation License?
The DIFC innovation license is a tech startup license with several incentives and acts as a launching pad for the innovative and cutting-edges technology startups and entrepreneurs encompassing fintech, edutech, regtech, and all other technology-based companies willing to do business in the MEASA region.
The DIFC Innovation license offers highly subsidized commercial licensing fees and high-quality co-working spaces at attractive rates. The license provides an opportunity to explore the technological innovations across the MEASA region and become a part of this innovation ecosystem and diversified communities of service providers, banks, financial institutions, angel investors and venture capitalists in the region. The license helps innovative technology companies willing for a DIFC company formation to establish, grow and expand their businesses and access the lucrative Middle Eastern, African and South Asian markets.
All businesses that are technology driven and have the potential to grow and contribute to the economic development of Dubai and the UAE, can apply for this license.
How to Obtain a DIFC Innovation License?
Obtaining a DIFC innovation license is pretty straightforward and involves the below-mentioned process steps.
- Submission of request with DIFC authority for accessing DIFC portal
- Tendering application along with a detailed business plan
- Submission of KYC
- Issuance of in-principle approval after pre-screening
- Registration of the business structure with the Registrar of Companies
- Issuance of innovation license
- Issuance of establishment card for processing visa
The entire process is done electronically and takes around 10 working days.
What are the Benefits Offered Under DIFC Innovation License?
The key benefits that are offered under this license are
- One-time registration fee of USD 100 only
- Subsidized licence fee of USD 1,500 per year only
- Data protection fee of only USD 250
- Access to co-working space (flexible desk) spaces for only USD 500 per month per flex desk plus VAT
- Waiver of minimum share capital requirement of USD 50,000
- Permit to obtain up to 4 visas on the co-working desk space and 50% subsidy on additional visas
The Takeaway
DIFC innovation license shows the commitment and dedication of the Dubai government to innovation and creativity as it plans to attract small and medium-sized technology startups and support them with networking and business growth opportunities.
The business setup process, however, can be complicated at times without the expertise of Company formation specialists in Dubai who can help the entrepreneurs in deciding whether the DIFC innovation licence is appropriate for their tech startups and even guide them through the application process.
- NEWSLETTER,SAUDI ARABIA
- August 1, 2022
On 4th July 2022, the Saudi Arabia Council of Ministers issued the new Companies’ Law which will replace the previous Companies Law of 2015 as well as the Professional Companies Law of 2019.
The new law which is in line with the Kingdom’s 2030 vision, brings in a number of significant changes to modernise the Saudi corporate law framework and enhance the flexibility and ease of doing business in Saudi Arabia for existing businesses as well as attract foreign investments in the country thus creating greater diversity in the market.
The new Companies’ Law is considered to be instrumental in further stimulating and developing the Kingdom’s commercial system. It aims to empower the private sector, enhance the sustainability of companies, support investment in small and medium enterprises through facilitating procedures and regulatory requirements, boost entrepreneurship and promote investment.
With the new law, the government is trying to stay shoulder to shoulder with the best international practices to address the existing concerns and challenges of the business sector and safeguard their interest.
New Companies’ Law 2022
The new Companies law will regulate all provisions related to companies, whether commercial, non-profit or professional.
It enables the following types of company formation in Saudi Arabia.
- Joint Liability Company
- Limited Partnership Company
- Joint Stock Company
- Simple Joint Stock Company
- Limited Liability Company
Key Amendments and New Provisions Introduced by New Companies Law
- The new law has introduced and regulated a new form of company – a Simple Joint Stock Company, which aims to meet the needs of entrepreneurs and attract venture capital. It is a flexible corporate entity, which can be established by one or more persons, managed by one or more managers or board of directors and issue several classes of shares. It can also serve as an investment arm for non-profit companies enabling them to enter the private sector and generate returns and finance non-profit projects.
- The new law has introduced and regulated non-profit professional companies.
- The law allows for the introduction of binding joint venture agreements and family charter in the company’s articles of association to regulate ownership, governance, administration policy, work policy, management, relatives employment, and dividends distribution in family owned companies.
- It creates more sophisticated vehicles for entrepreneurs, venture capitalists and private equity.
- Limited liability companies are granted the right to issue negotiable debt instruments or financing instruments.
- Removal of partnership companies from the category of companies.
- Sole proprietorship owners are allowed to transfer their assets to any form of company.
- Several restrictions on the company’s incorporation, business conduct, company name, and exit from the market have been removed.
- Small and micro companies are exempted from audit requirements.
- It allows companies to split into two or more companies.
- Introduction of more developed and elaborate re-structuring and merger provisions.
- The law provides for shares to be divided or split into shares of lower nominal value, or merging them to result in shares with a higher nominal value.
- It allows the distribution of interim and annual dividends to the partners and shareholders.
- The law simplifies the liquidation procedures in line with the KSA Bankruptcy Law.
- Introduction of alternative methods for dispute resolution.
- It facilitates automation of processes by enabling attendance at general assembly meetings through electronic means, facilitating virtual voting using technology tools and automating establishment requests.
- Extends a helping hand to companies to attract and motivate talent by allowing the issuance of different classes of shares with different rights, privileges or restrictions to employees.
- The law offers increased flexibility to small and micro companies by easing their statutory requirements, incorporation procedures and offering extra flexibility in forming and setting out the company’s articles of association or bylaws.
- The new law empowers the majority shareholders by offering greater control over the company in the event of planned sale or other material corporate transactions. The law allows the shareholders owning 90% or more of the total voting shares to force the owners of the remaining 10% to sell their shares for a fair value.
Stay tuned to know more about the Saudi Arabia New Companies’ Law 2022.
For any queries related to the New Companies’ Law, please contact IMC Group’s corporate law team.
- Article, Singapore
- July 25, 2022
There is a reason why Singapore is popularly known as ‘Asia’s emerging Silicon Valley’. The city-state is host to an exceptional network of over 4,000 tech-enabled start-ups in 2021 alone. This is significant growth from about 1,000 tech-enabled start-ups in 2014.
Singapore has evidently become the tech start-up epicentre of South East Asia by raising $8.3 billion in the first nine months of 2021, nearly two-and-a-half times the $3.5 billion raised in the same period last year, according to Enterprise Singapore. This is close to 50% of the total funding for start-ups in South East Asia.
Investments in deep tech start-ups have surged from $324 million in the nine months ended Sept 30, 2020 to $861 million in the nine months ended Sept 30, 2021.
Tech Start-Up Landscape in Singapore
“Singapore is a nation where we can create possibilities for ourselves beyond what we imagined possible.” – Prime Minister Lee Hsien Loong
Singapore is ranked at 14th position in 2019 by Start-up Genome for its vibrant tech start-up ecosystem and was valued at US$25 billion.
Owing to its progressive information and technology infrastructure, friendly business ecosystem, stable political environment, conducive business policies, attractive tax laws, strategic location advantage, skilled workforce, friendly digital trade, and encouraging government schemes, technology start-ups in Singapore are amongst the fastest-growing industries in the entire Asia Pacific region.
The country boasts of its state-of-art technology that offers economic, environmental, and technological solutions to its entrepreneurs and global investors. It is why new-age entrepreneurs think of company formation in Singapore.
Singapore: The Smart Choice for Your New Business
According to a report, Singapore has birthed at least 22 unicorns, surpassing the combined total of the last eight years. Some of the industry-leading tech start-ups that have emerged as unicorns in the nation’s technology ecosystem are Carro, PatSnap, Nium, Cove, Trax, Grab, Acronis, Zilingo, Circles Life and Carousell, among others.
Furthermore, there is a huge concentration of investors coupled with the vast availability of funds in Singapore which further boosts the growth of the Singapore ecosystem. The local ecosystem benefits from over 600 accelerators, incubators and investors.
These are some of the major reasons why a lot of home-grown start-ups as well as overseas start-ups have relocated their base in Singapore. To name a few, Grab, Konigle, Interviewer.ai and Privyr are some of the tech start-ups that have relocated to Singapore.
In 2022, the economic output of the technology sector is anticipated to cross $5.3 trillion. The tech-savvy companies and entrepreneurs are leaving no stone unturned to leverage this opportunity.
The above mentioned facts and data very much prove that this is the right time for you to register your tech start-up in Singapore.
Singapore is Shaping the Future of Technology Start-Ups
Singapore has always been at the forefront of preparing for the digital future. The setting up of Punggol Digital District ( PDD) is a testament to Singapore’s reputation as the region’s digital innovation hub. It depicts Singapore’s efforts toward Smart Nation and digital economy plans.
Opening in 2024, the district will serve as a living hub for companies, students and the public to test digital and smart living solutions.
Some of the top global companies like Delta Electronics Int’l (smart living solutions), Boston Dynamics (robotics design solutions), Group-IB (cyber security services provider) and Wanxiang (blockchain solutions) along with a network of tech associations have already confirmed plans to set up their bases in Punggol Digital District.
In one of the PDDevents, Singapore Minister for Trade and Industry Minister Gan Kim Yong said, “The ecosystem will be further strengthened by the Cyber Security Agency of Singapore (CSA), Government Technology Agency (GovTech) and a network of tech associations. Together, we hope to create a vibrant ecosystem that promotes opportunities for collaboration in the digital technology space.”
His statement gives more power to Singapore’s first smart business district and promises an even better future for the technology sector in Singapore.
Guide to Incorporating Your Business in Singapore: Essential Checklist
Why Choose Singapore for Tech Start-Up
Strong IP Protection Laws
Conducive Testbed for Innovation and New Technologies
Vibrant and Thriving Technology Ecosystem
‘Smart Nation’ Initiative
Under the ‘Smart Nation’ initiative, the Singapore government has launched Digital Economy Framework to transform itself into a digital-based society. It is becoming a tech hub for future technologies. Some of the strategies followed by the government that supports the initiative include:
- Establishment of a high tech ecosystem to boost the number of local tech start-ups.
- Digitalisation of existing domestic businesses to spur economic growth.
- Tax Exemption Scheme for local companies incorporated in Singapore for the first three years. They can claim corporate tax exemption of up to 75% on their first S$100,000 taxable income and up to 50% on their next S$200,000 taxable income.
Ease of Doing Business
Funding Support from Government
The government in Singapore offers various attractive grants, incentives and funding schemes that assist entrepreneurs and start-ups to launch and expand their operations from Singapore. Enterprise Singapore is a government agency supporting the growth of Singapore enterprises. Action Community for Entrepreneurship (ACE) is responsible for driving entrepreneurship and innovation in Singapore. The organisation helps Enterprise Singapore to offer grants to start-ups.
Minister for Trade and Industry, Gan Kim Yong said, “The Government is committed to supporting research and innovation. Under the Research, Innovation and Enterprise 2025 masterplan, or RIE2025, the Government will invest S$25 billion to anchor Singapore’s positioning as a Global-Asia node of technology, innovation and enterprise.”
A Complete Guide for Doing Business in Singapore
Substantial Grants and Incentives for Tech Businesses in Singapore
Startup SG
Startup SG Tech
Start-up SG Tech scheme acts as a platform for entrepreneurs to access local support schemes. The scheme is specifically targeted at tech start-ups. It provides early-stage funding to local Singapore companies for commercialising proprietary technology ideas.
The scheme aims to offer funds for Proof-of-Concept (POC) and Proof-of-Value (POV) projects. POC projects can avail grants up to S$250,000 if the project is designed for testing the technical and scientific viability of new technology. Whereas, POV projects can avail grants up to S$500,000 if the project is designed for testing the commercial viability of a lab-proven technology.
Start-ups that meet the below-mentioned criteria are only eligible for Start-up SG Tech scheme.
- Core R&D activities to be carried out in Singapore
- The company should be incorporated within the last 10 years at the time of grant application
- Company is not a subsidiary of a corporate entity at point of incorporation
- Group annual sales of the company is not more than S$100 million or the group employment size is not more than 200 people
- The local shareholding of the company should be minimum 30%
Startup SG Equity
Startup SG Equity scheme aims to stimulate private sector investments in innovative Singapore-based technology startups. The scheme is specifically targeted at general tech start-ups and deep tech start-ups. While general tech start-ups are companies that use existing technologies to provide an online solution for an offline problem, deep tech start-ups are companies that deal with high level issues and bring advanced solutions to complex challenges affecting humanity.
The scheme aims to assist start-ups engaged in technology innovation to access funding from private investors. It is a co-investment scheme in which the Singapore government will co-invest with private investors in start-ups that require significant capital expenditure and time to be commercially viable.
Singapore government will co-invest in a 7:3 ratio i.e., the government will offer 70% funding in an initial investment round of S$250k to the start-ups that are improving existing technologies. At a later stage, the government will co-invest in a 1:1 ratio i.e., it will invest S$1 for every S$1 invested by private investors up to a maximum of S$2 million.
For deep tech start-ups, the government will co-invest in a 7:3 ratio i.e., the government will offer 70% funding in an initial investment round of S$500k. At a later stage, it will co-invest in a 1:1 ratio i.e., the government will invest S$1 for every S$1 invested by private investors up to a maximum of S$4 million. In the last stage, it will co-invest in a 3:7 ratio i.e., the government will invest S$3 for every S$7 invested by private investors up to a maximum of S$8 million.
Start-ups that meet the below-mentioned criteria are only eligible for Startup SG Equity scheme.
- The company should be Singapore based and the core operations must be carried out in Singapore
- The company should have been incorporated as a private limited company for less than 10 years
- The company should prove that its products or services and applications offer substantial innovative and intellectual property
- The company should have the potential for high growth and show its ability to scale in the international market
- The company should not be a subsidiary or a joint venture
- The company should have a paid-up capital of minimum S$50,000
- The company should not be involved in illegal acts or acts that are against the public interest such as gambling, tobacco-related products etc.
- The company should have identified an independent third-party investor
Incorporate your Tech Company in Singapore with IMC Group
How to Incorporate Tech Startup in Singapore - FAQ
1) How do tech start-ups get funding in Singapore?
Tech start-ups in Singapore get funding via the following methods:
- Cash grants
- Government funding
- Tax incentives
- Angel investors
- Venture capitalists
- Incubators
- Accelerators
2) How do tech start-ups benefit from start-up schemes and grants?
- Quick access to funds
- Eases cashflow
- Provides the capital needed to perform key business activities like conducting market research and Research & Development
3) What are the different business structures for tech start-up registration in Singapore?
- Private Limited Company
- Limited Liability Partnership
- Limited Partnership
- Partnership
- Sole Proprietorship
4) Which is the ideal business structure for tech start-up registration in Singapore?
5) What are some of the key considerations for starting a technology company in Singapore?
When you have decided to launch your tech company in Singapore, a few questions that you might need to ask yourself are:
- What are the associated risks? Does the technology have clearly defined applications and a definable market?
- Is it going to be a disruptive technological innovation? If not, which category will it fit into?
- Who will own the intellectual property rights?
- When can the product hit the market?
- Will you be the sole founder or group of founders?
- What will be the role of founders?
- Whether it will be a small sustainable business or grow as a company or go for public listing or position itself for acquisition?
- What will be the initial valuation of the company? Will there be a need for private investments for long term growth?
- Do you want to limit your liability?
6) How long does it take to incorporate a technology start-up in Singapore?
7) Is it mandatory to have a local director for a Singapore Tech Company?
8) How much share capital is required to incorporate a tech company in Singapore?
9) What are the minimum requirements to incorporate a technology company in Singapore?
10) How many directors are required for private limited company formation in Singapore?
- Article, Singapore
- July 19, 2022
While the COVID-19 pandemic has significantly disrupted the economies around the world, there is a section of the society that has seen a record rise in their wealth during this time. We are talking about the super-rich segment of the population whose wealth has increased exponentially during this period.
According to The Wealth Report 2022 by Knight Frank, the global population of Ultra High Net Worth Individuals (UHNWIs) increased by 9.3% in 2021. These are the individuals having net assets of US $ 30 million (SG $ 40.7 million) or more.
In Singapore alone, the population of ultra high net worth individuals grew by 8.6% to 4206 in 2021 which is up from 3874 in the year 2020.
Another report by Knight Frank indicates that Singapore’s population of ultra high net worth individuals is expected to increase by almost 300% by 2026.
In fact, this has also been affirmed by Forbes List of Singapore’s Richest in 2021 which states that the consolidated net worth of Singapore’s 50 most affluent individuals rose to the US $ 208 billion in 2021 which is a whopping 25% increase compared to last year.
Not just Singapore, entire Asia is seeing a hike in the ultra-wealthy population. In 2021, Asia witnessed a 7.2% hike in ultra-wealthy population. Furthermore, Asia is anticipated to surpass Europe as the second-largest wealth hub by 2026.
HNWI Migration Trends in 2022
The 2022 Henley Global Citizens Report, which tracks global private wealth and investment migration trends states that Asia’s prime hub of affluence – Singapore continues to attract millionaires from other parts of Asia and across the globe with an expected net inflow of 2800 HNWIs this year. This is close to an 87% increase compared to 2019’s figure of 1500.
At present, among the top 10 countries with the highest inflow of high net worth individuals, Singapore ranks at 3rd position, after the UAE and Australia.
It is anticipated that Singapore’s high net worth population can grow by 3.4% in 2022. This also means, that nearly a quarter of the Singapore population will be represented by wealthy individuals.
It is highly likely that Singapore being the biggest wealth management centre in Asia, it will continue to attract many more ultra wealthy individuals to relocate to the island nation in the near future.
Why are Rich Migrating to Singapore?
The top drawing factors for ultra rich individuals to migrate to Singapore are political stability, economic stability, a plethora of business-friendly incentives, tax efficiencies, modern infrastructure, a pro-business environment, a strong legal system, a higher standard of living and an advanced healthcare system, among others.
Besides, Singapore’s strategic geographical location acts as the gateway to cities in the Asia-Pacific making it an even more attractive destination for many. This has also led to a concentration of wealth and a growing ultra rich population in Singapore.
As a result, more and more people are keen to explore the abundant opportunities present in this island country.
Singapore is also the first preference for several HNIs in other parts of Asia as they provide a reliable infrastructure for wealth preservation. Furthermore, Singapore is a preferred choice for digital entrepreneurs and family offices owing to its easy access to world-class financial advisors.
How Will This Impact Businesses?
With a high concentration of HNWIs in Singapore, there will be strong growth in the overall economy.
Some of the fastest growing sectors in Singapore in 2022 include banking & finance, Software & Technology, Healthcare, manufacturing, Artificial Intelligence, Data Science & Analytics, Biomedical & Biotechnology, Mental health, Tourism & Hospitality, and Digital & Internet Marketing.
Owing to the tremendous growth, company formation in Singapore is on a rise.
Thinking how to register a company in Singapore? Reach out to us for a free consultation on Singapore company formation or to start your own single family office in Singapore.
- NEWSLETTER,U.A.E
- July 13, 2022
Overview
International finance and industry experts are upbeat about the economic future of Dubai as the latest Dubai FDI Monitor data ranks this emirate first in the GCC and third worldwide in FDI attraction.
“Dubai is now among the world’s most attractive FDI locations. Global investors have placed their confidence in our business ecosystem,” highlights H.H.Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.
It is high time to forget the picture of the old desert city of Dubai as the new Dubai wears the hats of AI, Blockchain, Crypto, Startups, Fintech and other emerging technologies. Even the developed worlds, the US and Europe are shifting their blockchain platforms to Dubai.
As Dubai rapidly transforms into a sustainable and resilient economy offering myriad growth opportunities, waves of new investments are pouring in and paving the way for new businesses who like to put their footprint in the city through a business setup in Dubai. The emirate today grows into a hotbed for international start-ups looking for unlimited business prospects and opportunities.
“Dubai is well-positioned from a geographical perspective. It’s a hub and has a lot of connections with the rest of the globe. Dubai is multinational in nature, which makes it a vibrant environment, where there is a mix of cultures, and this is also used to check if the idea of a start-up can work from different perspectives,” comments a top management executive from Accenture, Middle East.
The government of Dubai has long been acclaimed for its proactive and fast decision-making process as well as effective policy implementation. Innovation and creativity are always on the top of the agenda of the government authorities who are inclined on enhancing new-age futuristic technologies.
Why are Indian Entrepreneurs Moving to Dubai?
A friendly business landscape, low tax environment, high global connectivity and an opportunity to engage skilled global talents are driving Indian entrepreneurs to turn their heads to Dubai for relocating their businesses.
The new Visa rule offering the golden Visa scheme has been another major catalyst for Indian businesses to consider Dubai as the most ideal destination for setting up their business. Being a long-term residence visa allowing foreign entrepreneurs, startups and talents to live, carry out businesses, work, or study in the UAE for up to 10 years is luring many Indians to explore Dubai for a bright and glorious business journey.
Fast and easy business setup, robust infrastructure, lower taxes on starting and running a business, and a friendlier policy environment are some of the key features under the Golden Visa scheme that are attracting increasingly more Indians to Dubai.
There are also many reputable firms of Indian origin and cross-border presence offering PRO services in Dubai and facilitating hassle-free, easy and fast company set-ups in the emirate that acts as an additional stimulus for Indian businesses to shift base.
With increasing regional economic competitiveness, Dubai is getting ready to become the crypto capital of the world with a regulatory environment conducive to the growth of this sector. Sheikh Mohammed Bin Rashid, the ruler of Dubai, recently rolled out the first legislation governing virtual assets and assigned an independent regulator to promote Dubai as a regional and global cryptocurrency trading hub.
Indian exchanges are expressing their willingness to capitalize on this opportunity.
The negative stance on cryptocurrencies in India is discouraging the crypto businesses and more recently an imposition of a flat 30% tax on all crypto gains has become a huge negative for this sector.
Two founders of the Indian cryptocurrency exchange, WazirX, recently shifted base to Dubai and raised speculations about other crypto and Web3 startups including their management shifting to Dubai.
A few crypto exchanges from India have plans to capitalize on the favourable crypto ecosystem of Dubai and may shift their base.
Recent Web 3.0 events held in Dubai in March 2022 also witnessed a highest-ever surge in Indian attendees to almost 75%.
Intelak is a technology and innovation hub based in Dubai that supports start-ups, both in early and late stages with mentorship, business tools and resources to set up businesses and give shape to their perceptions and thoughts.
Intelak hub facilitates collaboration with big companies, brands, and industry leaders. Just having a great idea doesn’t take anyone far unless appropriate funding, backing and support are made available to turn a dream business idea into reality through the support from Intelak.
Important to note that the Indian startup population is almost 30% of the total startup population in Dubai which hosts a large network of incubators offering help to the start-ups to make any good business idea to fruition.
Incubators create conducive environments for small and medium emerging businesses by offering early funding, providing co-working spaces, imparting training and workshops, networking events, and providing access to investors. The city presently boasts several enabling platforms for entrepreneurs and start-ups including TechStars Dubai, Turn8, In5, FinTech Hive, Astrolabs, and many more.
The Fineprint
Besides the benefits of the recently revised Visa administration offering Golden Visa, the other most important reason that is driving Indian startup founders to shift their base to Dubai is significantly less taxation for business set up and operation. Outsourcing PRO services in Dubai is often recommended for Dubai business aspirants as it can help companies to avoid many pitfalls and unpleasant future surprises.
Indian investors have placed their unfailing trust in the business ecosystem of Dubai, making it among the most tempting overseas locations in the gulf. The emirate, with business-friendly initiatives, continues demonstrating its commitment to the needs of investing communities.
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