Singapore Archives - Page 2 of 12

Article, Singapore

Buy Back Scenario: India vs Singapore

September 4, 2024

India

With the effect from October 2024 there will be significant changes in the tax regime for buy back of shares.

The new rule will shift the tax burden from companies to shareholders. Current tax rate of 20% paid by the company will be eliminated.

Moving forward, the proceeds from buy back will treated in the same fashion as of dividend and will be taxed in their individual’s respective slab rates.

The resident shareholders will end in increased tax burden particularly in higher tax brackets.

Non-resident shareholders tend to benefit from the new tax regime under tax treaties for dividend income with option to claim credit for Indian taxes & their home jurisdiction.

Singapore

As per Singapore tax laws, buy back of shares are treated as capital expense in nature. The SG entity is liable to pay stamp duty of 0.2% on value of shares or purchase price at the time of buy back of shares.

In the hands of the shareholder, proceeds received from buyback would be considered as capital gain.

Any gain or loss from sale of share are generally viewed as personal investments and stands exempted in the hands of the shareholder.

NEWSLETTER, INDIA, Singapore

Strategic Collaborations between India and Singapore to Shape Global Transformation

August 13, 2024

India and Singapore are well-poised to drive a new era of global transformation. With increased sustainability, equity, and opportunity, the two Asian countries offer tremendous business potential to rapidly expanding firms. Singapore President Tharman Shanmugaratnam pointed out this lucrative commercial prospect during his speech at the 20th anniversary of the ISAS (Institute of South Asian Studies) at the National University of Singapore. He stated that although there’s a global trend of re-emerging industrial policies among major economies, both India and Singapore have the agency and capability to shape a stable and prosperous future.

Naturally, forward-thinking businesses will be looking for company formation in India and Singapore to capitalize on the growth potential.

A Shift in Global Economic Policies

Shanmugaratnam pointed out a significant resurgence of industrial policies like subsidies and tax breaks strengthened specific domestic industries. These policies resemble the ones formulated in the 1960s and 70s, and are making a comeback at a significant rate. The IMF states that in 2023, there were as many as 2,500 such interventions. Among these, two-thirds were designed to domestic interests over foreign competition.

However, such actions were not necessarily based on fresh evidence or a comprehensively evaluated reassessment of economic prosperity. Rather, they were based on competitive and reactive impulses among nations.

India and Southeast Asia: Strategic Middle Powers

Shanmugaratnam also pointed out that India and Southeast Asia are responsible middle powers. They have the potential to collaborate with nations sharing a similar mentality to reinforce multilateralism. Although multilateralism isn’t free from flaws, it has been crucial in restoring global stability. It has benefitted countries across various economic spectrums for decades.

President Shanmugaratnam also outlined how neither India nor Singapore is entangled in the major geopolitical conflicts, which gives a unique advantage to both the nations. He highlighted that the majority of the populations in these regions are optimistic about their future. This is a rare sentiment in today’s world. With over a quarter of the global population and 15% of the world’s GDP, India and Southeast Asia are also the fastest-growing regions globally. This positions them as crucial players in the upcoming decade.

Strategic Recommendations for the Future

Shanmugaratnam offered three key recommendations to help businesses explore the global landscape and capitalize on emerging opportunities.

Focusing on domestic capabilities: Rather than engaging in protectionist policies, he stated that countries should invest in developing their own capacities. Innovation, driven by a competitive environment, continues to be the fundamental driver of long-term economic growth.
Collaboration across sectors: Organizations often find developing individual potential and upgrading skills to be a complex task. It requires close cooperation between governments, businesses, unions, community organizations, and educational institutions. Therefore, these efforts should be supported by inclusivity to maintain political consensus for open and fair economic policies.
Building global coalitions: India and Southeast Asia need to work with other responsible partners to tackle global challenges. For instance, the transition to sustainable energy calls for collective efforts. In this way, the region can shape a more stable and prosperous global future.

Strengthening Bilateral Relations

Shanmugaratnam expressed optimism about the future of bilateral relations between Singapore and India. He appreciated the leadership of the Indian Prime Minister Narendra Modi, stating that his recent electoral victory reflects the positive impact of his policies on the lives of millions of Indians. As India continues to grow under the same leadership, it will strengthen and deepen the bilateral ties between Singapore and India.

Professional Assistance to Form a Company in Singapore

At a time when the world is witnessing economic uncertainty with shifting global policies, India and Southeast Asia have the potential to lead by example. These two countries need to focus on innovation, collaboration, and strategic partnerships to secure their own national interests as well as contribute to a more equitable and sustainable global business ecosystem.

Emerging brands looking to expand overseas are seeking professional advisory services from the IMC Group during their company formation in Singapore. With experts guiding these entities on the right track, businesses can quickly capitalize on the tremendous commercial potential in Singapore.

Newsletter, Singapore

Family Offices in Singapore Shift Focus: Direct Investments in Private Companies

July 11, 2024

With the mission to deliver higher monetary returns to their clients, family offices in Singapore are shifting their focus and investment strategies. A large number of family offices are opting to invest directly in private companies rather than through traditional channels. This shift marks a significant trend in investment tactics, driven by their unique competencies and the objective to grow long-term capital. The success of a single family office in Singapore defines its popularity among wealthy families and individuals.

The Rise of Direct Investments

A survey reveals that as much as 62% of family offices have made at least six direct investments in private companies last year. This approach involves purchasing stakes in companies or providing direct lending, bypassing traditional investment vehicles.

In 2024, 71% of family offices have decided to increase their direct investments or maintain their existing levels. This trend explains the role of family offices in private markets. These organizations have been potentially reshaping the dynamics of private equity, besides fostering innovation in investment strategies.

Benefits and Challenges

Direct investments allow family offices to leverage their entrepreneurial expertise and management skills that they gained while running private companies. As they invest in a long-term horizon that traditional financial institutions often fail to match, they offer patient capital. However, direct investments pose challenges like specialization in the industry and carrying out thorough due diligence. This explains why many family offices are turning to wealth management firms and investment consultants like the IMC Group for expertise. With professional assistance, they can manage potential investments and mitigate risks.

Co-investing and Strategic Partnerships

Family offices are increasingly co-investing alongside traditional private equity firms. This is a collaborative approach that reduces fees and enhances the potential for higher returns by sharing interests and diversifying portfolios.

Direct investments in private companies capture the illiquidity premium. This strategy falls in line with the long-term wealth preservation goals of family offices, thereby ensuring stability and sustainability across generations.

As family offices continue to evolve into formidable players in private markets, their strategic investments and partnerships are set to influence the future landscape of global investments.

The IMC Group continues to be a trusted partner for family offices investing. With dedicated assistance from experts, a professional consultation can put the investments in the right avenues.

NEWSLETTER, INDIA, Singapore

Strengthening Indo-Singapore Bilateral Relations to Boost Trade

March 12, 2024

Singapore continues to be one of the sought-after international business destinations, attracting investments from all around the globe. In this edition, let’s take a look into the recent stride towards fostering robust trade ties and investments between the Indian government and Singapore. Led by the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), Rajesh Kumar Singh, the delegation was involved in a series of discussions and strategic engagements to strengthen bilateral cooperation. The visit, which commenced on Monday, witnessed key government officials from India engaging in high-level dialogues with their Singaporean counterparts. This established the groundwork for better collaboration and investment inflows. The delegation was actively involved in investor roundtables, showcasing the vibrant economic landscape of India along with investment avenues across various industry verticals. India-Singapore Trade Roundtable was one of the noteworthy events, focussing on the Food and Machinery Sector. It was jointly organized by the High Commission of India in Singapore and the Federation of Indian Chambers of Commerce & Industry (FICCI) in collaboration with the Singapore Business Federation. Besides facilitating dialogue, the involved parties discussed scopes of joint ventures, strategic partnerships between businesses in India and Singapore, and the transfer of technologies. The primary objective of the delegation was to cordially invite investors and motivate them to explore the extensive investment potential in India. This is likely to mature into stronger trade relations between the two nations. Discussions between Rajesh Kumar Singh and Beh Swan Gim, Singapore’s Trade and Industry Ministry Permanent Secretary revealed the mutual commitment to deepen cooperation across different sectors, thereby demonstrating the importance of bilateral ties. The delegation also actively participated in Investors roundtable discussions focusing on Renewable Energy and Electronics and Semiconductors that were organized by Enterprise Singapore and Invest India. A session of constructive dialogues followed between the leaders representing both countries as they explored viable avenues to intensify investment collaborations. Thus, the potential for strategic ventures between Singapore and India is on the cards. Currently, Singapore stands in the 8^th position among the largest trade partners of India. In 2022-23, bilateral trade between these two countries reached a mammoth $35.59 billion. This marked a commendable growth of 18% over the previous fiscal year, as pointed out by the Indian High Commission in Singapore. The positive growth trajectory highlights the strong potential for further expansion and deepening of economic engagements between the two Asian countries. With these developments, Singaporean entities would be looking for company formation in India and capitalize on the opportunities. The IMC Group continues to be a trusted partner for company formation for global businesses expanding across borders, offering professional counselling and assistance.

India, Newsletter, Singapore

India and Singapore Strengthen Economic Partnership: An Examination of Trade and Investment Trends

May 15, 2023

India and Singapore are consistently strengthening their Strategic Partnership, with Singapore contributing to a quarter of India’s trade with Southeast Asia during FY 2021-22. Furthermore, Singapore has emerged as India’s leading foreign direct investment (FDI) source, and its prominent FDI firms are actively engaging in company formation in India for urban planning and infrastructure projects across the nation. This growing economic cooperation demonstrates the significant role Singapore plays in India’s trade and investment landscape.

Economic Ties Secured by the Comprehensive Economic Cooperation Agreement (CECA)

CECA serves as an essential platform for economic cooperation between India and Singapore, initiated in 2005. Since then, bilateral trade has expanded from US$6.7 billion in FY 2005 to US$30.11 billion by FY 2022. Singapore has become India’s sixth-largest trade partner, while India ranks 12th for Singapore.

Since 1990, Singaporean firms have become one of the primary sources of FDI into India, contributing nearly 23% of total inflows, totalling approximately US$140.98 billion over that time frame. Singaporean firms play a critical role in urban planning and infrastructure development in India.

India and Singapore enjoy an expansive bilateral relationship that spans political, defense, economic, technological, and cultural ties. Both countries actively participate in various international fora and have signed various agreements to facilitate collaboration. These agreements include the Double Taxation Avoidance Agreement and Defense Cooperation Agreement, which further facilitate cooperation.

India-Singapore Ministerial Roundtable

The inaugural India-Singapore Ministerial Roundtable took place in New Delhi in September 2022. It provided a platform to explore existing and emerging areas of cooperation such as digital connectivity, fintech, green economy/green hydrogen production/use, skill development, and food security. At this event, the Monetary Authority of Singapore (MAS) signed an Agreement on Fintech Cooperation between them and the International Financial Services Centers Authority (IFSCA) of Gujarat state.

Bilateral trade between India and Singapore reached US$14.75 billion during FY 2023 (April to August 2022), a 24.7% rise over its prior-year totals. This increase is attributable to both CECA’s success and the strengthening of the Strategic Partnership between both nations.

Conclusion

India and Singapore share a robust economic partnership, reinforced by the Strategic Partnership and CECA agreements. These agreements have led to significant growth in trade and investment between the two nations. As collaboration on a variety of issues continues to expand, the future holds immense potential for even greater economic cooperation. If you are considering company formation in Singapore or India, let IMC Group assist you in navigating this promising landscape. IMC Group can guide you through the process of company formation, ensuring a seamless experience.

Newsletter, Singapore

Singapore will Play the Leading Role in Attracting Foreign Investment into The South Asian Region in 2023

December 6, 2022

Singapore is the dream destination for investors, entrepreneurs, and expatriates alike including all businesses looking for Singapore company incorporation to expand into Asia. Companies prefer Singapore for their businesses as it has grown and developed into a financial hub, conducive for trade having world-class infrastructure, and a stable, transparent, and progressive legal and regulatory framework.

The government’s policies, for long, have positioned this city-state as a business-friendly and open-to-trade nation, attracting foreign direct investment inflows and welcoming overseas businesses to set up shop on its shores following a simple and transparent Singapore company registration process.

Many multinational corporations are already establishing their presence in Singapore, which is the fourth largest financial center globally, home to the biggest foreign exchange in Asia-Pacific, and often known as the financial capital of the South Asian region.

There has been a continuous and consistent inflow of foreign investments in Singapore from different parts of the world and especially from China. The country has a geostrategic location as the heart of the ASEAN free trade bloc enjoying free trade agreements with both China and India.

Many Chinese investors in Singapore are aggressively pursuing businesses in digital economies and are poised to build Singapore up as an Asian nodal point in new technology. Huge Chinese investments are flowing into Singapore and in tech-based ventures including AI, Crypto & Blockchain, Fintech, etc. These Chinese-backed tech ventures are also bringing in huge monetary rewards to Chinese investors at the time of IPOs.

Chinese belt and road initiatives are playing an important role in attracting FDI inflow into Singapore as they include plans to connect Singapore to many ASEAN nations and develop several free trade zones on outlying islands. Singapore is thus all set to play a leading and competitive role in FDI inflow into the South Asian region.

Singapore is a member of both ASEAN and Regional Comprehensive Economic Partnership (RCEP) agreements and witnessing significant investments in manufacturing and digitization, infrastructure, and technology including digital financial services, digital payment token services for crypto exchange, developing autonomous driving platforms, and technology with connected smart transportation services.

Cybersecurity, robotics, cloud technology, digital industrial platform development, industrial metaverse, data center development as digital infrastructure, and cross-border connectivity are also areas attracting huge foreign investments in Singapore.

Singapore’s GDP forecast for the H2 of 2022 is up 4.8% year-on-year, after growth of four percent in H1 of 2022. The nation registered a GDP growth of 7.6 percent in 2021 when the economy bounced from the impact of the COVID-19 pandemic. Singapore witnessed growth in manufacturing output by 13.8% year on year in May 2022. The World Bank ranks Singapore as a high-income economy with a gross national income of USD 72,794 per capita in 2021.

There is no surprise that Singapore’s political stability, openness to global investment, and economic strength make it an ideal destination for investors including foreign business owners seeking to invest in Singapore. It is evident from the fact that the majority of the assets under management (AUM) in Singapore originate overseas.

The most alluring for foreign investors is the quality of life the city-state offers and the most relieving is the presence of professional Business Consulting firms who can guide how to setup a local company in Singapore in the quickest possible time.

Newsletter, Singapore

Singapore: Adding Value as a Talent, Technology and Trade Hub Globally and In Southeast Asia

September 13, 2022

The ‘Google for Singapore’ event was celebrated for the first time in Singapore on 23 August, Tuesday marking the 15th anniversary of this company. A large number of industry and government leaders, including Singapore’s Deputy Prime Minister and Minister for Finance Lawrence Wong (DPM Wong), attended this memorable event.

In Google’s 15th anniversary event, the search engine giant deliberated its plan towards empowering Singaporeans to further elevate the city state’s outstanding status as a regional and global technology innovation hub encompassing four principal pillars including investments, online safety, economic opportunities and sustainability.

DPM Wong, attending this event said, “In fact, Singapore will enhance its value as a hub for trade, technology and talent flow even as economic uncertainties prevail amid an increasingly divisive world.”

The Deputy Prime Minister, at this event, also adored Google saying that the tech giant has remained Singapore’s strong and steadfast partner since it set up its footprint in this country 15 years ago.

Drawing particular reference to the Covid 19 pandemic over the last two and half years, DPM Wong noted the praiseworthy work Google has been doing in close association with the Singapore government to help residents bridge the digital gap between studying and working from home and get connected.

DPM Wong forecasted trade and investments 15 years down the line and noted that friendship between nations will dictate and matter more in the present circumstances than in the past trade and investments.

“Increasingly, there is a new logic at work: Let us be friends first before we do business,” he highlighted, narrating the world at a turning point.

“Geo-politics is increasingly driving trade and investments. And if this trend were to continue, and it looks likely, then we are heading to a more bifurcated and decoupled world,” he said.

200 event attendees at Google’s Mapletree Business City II office on Pasir Panjang road were also reminded by DPM Wong that such challenges are not new to the Singaporeans who have dealt with such challenges since the country’s independence in 1965.

He also appraised the event attendees on investment and trade opportunities in Southeast Asia and Singapore, leading this continent in such matters.

“The digital economy in South-east Asia is only just getting started – fuelled by a huge, untapped but fast-growing digital consumer market,” he emphasized.

In light of increasing Asian wealth, a rising number of high net-worth families are consolidating their wealth in the city-state through formal structures and incorporating a Single Family Office in Singapore. This is how enhanced value creation is happening in Singapore as a trade and investment hub and as echoed by DPM Wong.

The Deputy PM also affirmed, “For its part, the Singapore Government will do everything it can to enhance its position as a hub for trade, technology and talent flow.”

Singapore is also striving hard to strike digital economy agreements with other countries to enhance trusted cross-border data flow to bring value through digital trade and innovation.

Singapore has recently entered into a Digital Economy Agreement with the UK. It also has similar pacts with Australia, Chile, New Zealand and South Korea. This new kind of trade agreement to boost digital trade is expected to attract more FDI through company formation in Singapore.

DPM Wong also stressed the importance of digitization in driving industrial growth and adding value as a tech hub. He added, “Of course, to be an effective hub, we also have to work with companies like Google to strengthen our tech ecosystem.”

Google officially launched its 3rd data centre in Singapore on Tuesday, Aug 23 and raised the company’s total investment in data and cloud facilities in the country to USD 850 million equivalent to SGD1.19 billion. Around 2.5 billion South Asian people will be able to access the services of this data centre.

Earlier an Oxford Economics report released by Google revealed that the company’s data centres in Singapore have contributed significantly to the country’s economy and generated around USD 216 million worth of economic activity in 2020.

Google Cloud and the Smart Nation and Digital Government Group (SNDGG) have secured a partnership deal to co-create innovative AI solutions for improving the work and lives of Singaporeans. The National AI Office of SNDGG has, for the first time, plans to enter into a public-private AI partnership with a renowned global technology company.

Google is also in the process of making a partnership with the IMDA and the Media Literacy Council for supporting the Digital for Life movement. This partnership will also ensure that 50,000 parents and children are trained on online safety. Be Internet Awesome (BIA) is a curriculum designed by the American tech giant to train primary school students which in turn will enhance the value of Singapore as a talent hub.

Article, Singapore

Why Should You Consider Incorporating Your Tech Start-up in 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.

The government is also making every effort to develop Singapore into the world’s first truly ‘Smart Nation’. The Infocomm Development Authority of Singapore (IDA) which looks after the technological sector is on a mission to build an innovation driven economy where technology start-ups have a crucial role to play in bringing innovation and vibrancy into the tech ecosystem.

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 14^thposition 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

Singapore has successfully positioned itself as a ‘global IP hub in Asia’, with a range of programmes to accelerate the patenting process to match up to the demands for IP rights worldwide. Singapore company incorporation enables you to protect your innovative tech ideas through strict IP laws.

Conducive Testbed for Innovation and New Technologies

With a population of around 6 million, Singapore is considered a perfect test bed for new technologies and for testing your innovative tech ideas. It is also seen as a gateway to access the broader Southeast Asia market opportunity. This is one of the prime reasons that attract creative and innovative entrepreneurs to locate their start-ups in Singapore.

Vibrant and Thriving Technology Ecosystem

Singapore’s ecosystem of open innovation enables technology businesses to thrive in a digital economy. Leading tech companies like Facebook (now META), Amazon, Apple, Netflix and Google have their bases in Singapore. This gives an opportunity to start-ups to draw on cutting-edge research and also connect with thought leaders in their respective industries.

‘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

The start-up culture in Singapore is supported by the forward-looking government that ensures ease of doing business. Singapore has consistently been recognized as the easiest place in the world to conduct business. In fact, as per the ‘World Bank Annual Ratings 2022’, Singapore is ranked at 2nd position among 190 economies across the world in the ease of doing business. Also, as per the Economist Intelligence Unit’s ‘Business Environment Rankings, 2022’, Singapore ranks 1st in the Asia Pacific and the world for having the best business environment.

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

Some of the grants offered by the government agencies to tech start-ups in Singapore to accelerate their development and fund their operations include:

Startup SG

Startup SG is a SPRING Singapore-led programme that unifies an array of start-up support grants and schemes under an umbrella initiative. The programme has six unique pillars that deal with the various aspects of a start-up ecosystem. Let us take you through each pillar of the Startup SG programme in detail so that you can tap on these schemes to avail financial, talent and capability support if you plan on starting a new company in Singapore.

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%

Start-up SG Tech offers grants to companies in the sectors such as advanced manufacturing and robotics, biomedical sciences and healthcare, food science and technology, agritech, information and communications technologies, precision engineering, transport engineering and clean technology.

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

With easy and efficient access to IP protection laws, testbeds, grants and resources, Singapore is the most ideal destination to incorporate your tech company and establish your presence in Asia. If you need help with your technology company formation in Singapore, get in touch with IMC Group and find out more about our company incorporation services.

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?

Tech start-ups benefit from start-up schemes and grants in the following ways:

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?

You can register your tech start-up in Singapore with any of the below-mentioned business structures:

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?

The most ideal business structure for tech start-up registration in Singapore is a private limited company. It is dynamic and scalable. Moreover, a private limited company also limits your liability to your share capital.

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?

If all the documents are in order, incorporation of a technology start-up in Singapore takes only 1 to 3 days.

7) Is it mandatory to have a local director for a Singapore Tech Company?

Yes, it is mandatory to have at least 1 local director who is either a natural resident of Singapore or a permanent resident or holder of an Employment Pass, Entre Pass or a Dependant’s pass.

8) How much share capital is required to incorporate a tech company in Singapore?

As per provisions of the Companies Act in Singapore, you can incorporate a tech company in Singapore with just S$1 share capital. You can increase the share capital in the future as per your choice.

9) What are the minimum requirements to incorporate a technology company in Singapore?

You can incorporate a tech company in Singapore with a minimum of one share, S$1 paid-up capital, one shareholder, one local resident director, and a local registered address.

10) How many directors are required for private limited company formation in Singapore?

Private limited company formation in Singapore requires at least 1 local director who is either an ordinarily resident in Singapore or a Singapore citizen or permanent resident in Singapore or holder of an Employment Pass or Entrepreneur Pass. The person should be 18 years of age or above.

Article, Singapore

Millionaires are on the Move to Singapore – The Country Ranks 3rd in Attracting High Net Worth Individuals

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 3^rd 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.

Article, Singapore

Why It’s Better to Outsource Company Secretarial Services

May 23, 2022

There is no doubting that corporate secretary is another of the crucial posts that should not be left unfilled in the smooth operation of a business. Even though professional corporate secretary doesn’t really make decisions, they guarantee that every decision made has been reported to the appropriate individual. Actually, their functions and responsibilities are extensive, and they play a critical part in the firm’s efficient running.

When you have taken the decision to export your business’s secretarial responsibilities, you must make an intelligent decision. You don’t want to employ a firm just to come to repent your decision later. In this post, we will discuss the blunders you should avoid while outsourcing business secretarial services.

Some Mistakes You Should Avoid When Employing Company Secretary Services Singapore

Below are a couple of things to keep in mind when you are exporting your firm’s corporate secretarial responsibilities.

Putting Your Trust in any Inexperienced Agency:

Many managers are prone to depending on the very initial corporate secretarial firm they come across simply because people are in the rush. When you have been performing this, it is indeed time to changing company secretary in Singapore plan. Corporate secretarial firms are not all made equal, and thus the grade of services provided may differ from company to company. Utilise the assistance of an expert corporate secretarial firm to obtain a greater return upon your investment.

Choosing the Most Cost-Effective Service:

With many more service suppliers to pick from, it may be difficult for anyone to select the finest one. Some businesses charge cheap rates to entice naïve customers. Even if you are having financial difficulties, you shouldn’t ever focus your search just on price.

This is usually a great idea to investigate several agencies and see what they want to provide. Rather of choosing a service supplier just on pricing, spend a bit of time researching essential factors such as expertise, services offered, and reputation, to name a few. Your research should not end there because you have to choose an agency which best fits with the aspirations and goals of your organisation.

The Value of Singapore secretarial compliances for a private limited company

Every firm has secretarial chores which should be performed by competent employees to achieve optimal business efficiency. Yet, keeping up with these responsibilities may be difficult when you are operating a complete firm on your own.

For example, the Corporations Act requires companies to produce certain paperwork by specified timeframes, which would be the job of corporate secretaries. Businessmen may easily fix this problem by outsourcing corporate secretarial solutions that will free up their time to concentrate on other important company activities.

Accurateness:

Running a business is a difficult endeavour wherein the efficiency and correctness of the overall process are important. Companies can benefit from correct and timely management of vital business tasks by exporting secretarial solutions. As a consequence, any possible legal difficulties are avoided because all legal procedures are completed on time. Therefore, you didn’t have to think about handling the filing of finance or taxes reports because experienced corporate secretarial compliances in Singapore may simply manage it.

Experience and knowledge:

While running a business, particularly a new one, you need every expert assistance you can obtain. It is obvious that every organisation may now engage skilled personnel with experience in addressing various administrative concerns. However, this is very viable to outsource secretarial services since you would be working with a certified, skilled, and experienced corporate secretary.

Conclusion

Exporting corporate secretarial responsibilities is another of the finest moves you would ever make throughout your quest for business success. You must take caution while selecting a service supplier, just like you would with anything else. You will never repent your decision if you take this move.

Business Admin & Finance

Organizational Support

Ongoing Support

Accounts

Financial Insights

Tax Solutions

Corporate Complaince

Outsourcing

Blog