The Singapore government has offered a wide range of startup schemes and grants to promote the growth and expansion of businesses in Singapore. In fact, to get ahead of the fierce competition, the Government of Singapore recently rolled out Startup SG in March 2017. The aim of this launch was to provide an enhanced and innovative business environment to gather fresh startup talent from all the corners of the world. Such measures taken by the government are proving beneficial in propelling the country towards a thriving start-up ecosystem.
Why Does Singapore Appeal to Global Entrepreneurs?
The primary factors that contribute to the flourishing state of Singapore’s microbusiness ecosystem are its political and macroeconomic stability. In addition to these, a strong judicial system, corruption-free bureaucracy, and robust regulatory institutions have provided a thriving business environment in the nation. Other factors include state-of-the-art infrastructure, financing schemes and cash grants by the government, and tax incentives, among others.
Startup SG in Singapore
Startup SG is an umbrella branding that brings together all the support schemes for startups in Singapore. It is basically a launch pad for all the global entrepreneurs that offers them a platform to connect with the global entrepreneurial network and also gain access to the local support initiatives.
The six pillars of support include the following:
This scheme was developed for new entrepreneurs with an innovative business. It provides up to $30,000 by matching $3 to every $1 raised by the entrepreneur. Along with the funding, mentorship and business guidance will also be provided to such entrepreneurs from Singapore-based incubators. This scheme can be applied only through an Accredited Mentor Partner (AMP).
The grant offers project funding to local Singapore companies to develop a breakthrough technology. With this grant, such companies will receive funding for POC (Proof-of-Concept) and POV (Proof-of-Viability) projects. POC projects are designed to test the technical and scientific viability of a new technology. POV projects are designed to test the commercial viability of a lab proven technology. POC projects can receive funding up to S$250,000 whereas POV projects can receive up to S$500,000.
Startup SG Equity is an investment fund managed by SPRING Seeds Capital and SGInnovate for funding startups that require higher capital expenditure and take longer to become commercially viable.
The eligibility criteria for the startups include the following:
- The company must be a private limited company incorporated in Singapore having a paid-up capital of S$50,000 minimum.
- The company must not be a joint venture or a subsidiary.
- The company must not have been in existence for more than 5 years.
- The core activities of the company must be carried out in Singapore.
- A third party investor ready to invest in the company must be identified by it.
- The company must have high growth prospects and international scalability.
- The company must demonstrate that its applications have substantial intellectual content and are highly innovative.
Startup SG Accelerator provides funding for incubators that assist in developing and mentoring new startups in high growth industries. Some of the sectors in the list of accelerators and incubators include the following:
- Cybersecurity
- Smart Logistics
- FinTech
- MedTech
- Robotics
- Data Analytics
- Artificial Intelligence
- Internet of Things
These are government-backed loans that are offered through Participating Financial Institutions which can provide startups with the much-needed working capital. Trade financing and equipment/factory financing are also covered by such loans. Startup SG Loans include SME Micro Loans that are applicable for companies with less than 10 employees to support their day-to-day business needs with financing up to S$100,000.
This pillar includes schemes such as the EntrePass, T-UP and SME Talen Programme (STP) for startups. EntrePass is a work pass scheme that eases the entry and the stay of global entrepreneurs in Singapore so they can contribute their skills to the local skill-sets and make for a more vibrant start-up ecosystem.
If you are looking for company registration in Singapore, get in touch with us. We can assist you with Immigration and Visa services and also offer taxation services once your company has been established.
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IMC Group