What are the benefits of startup schemes and grants?

There are a few benefits of obtaining these grants: Eases cashflow Provides the capital needed to perform key business activities like conducting market research and R&D Quick access to funds

How do startups get funding in Singapore?

Here are some of the main funding methods: Cash grants Government funding Tax incentives Angel investors Venture capitalists Incubators Accelerators

What are the most popular startup grants and schemes?

While there are different options to choose from, the more popular ones are those with fewer eligibility requirements and processes. Some popular ones are the PSG and EDG grants. Of course, you also need to consider the type of grant and whether it is specific to the industry your business operates in.

13 Startup Schemes and Grants in Singapore

Singapore has everything a startup desires, including business-incubating infrastructure, tax incentives, cash grants, and financing schemes.

In fact, the government rolled out several initiatives over the years to propel the nation towards a thriving startup ecosystem.

To get ahead of the fierce global competition for talented entrepreneurs, Minister of State for Trade and Industry Mr Koh Poh Koon announced the launch of Startup SG back in March 2017.

Startup SG is the umbrella branding unifying all the support schemes for startups in Singapore.

It is a launchpad for entrepreneurs by providing them a platform to access local support initiatives and connect to the global entrepreneurial network.

It acts as a comprehensive source for loans, grants, funding, and capability enhancement.

Over the last 2 decades, the number of startups in Singapore has increased tremendously.

The number was 48,000 in 2015, as compared to 22,000 in 2003. And while no exact figure was provided for 2021, local startups raised S$11.2 billion in the first 9 months of the year, more than twice the figure in 2020.

So, if you have decided to be a part of the city-state’s vibrant startup ecosystem and incorporate a company in Singapore, below is a list of 13 governmental schemes and grants you can receive here.

1. Startup SG

The platform caters to every possible variation of a startup ecosystem and is categorised under 9 different pillars:

Startup SG Founder

This option provides mentorship and startup capital grants to first-time entrepreneurs with innovative business ideas.

The improved Startup SG Founder scheme consists of these 2 pathways:

The Startup SG Founder “Train” track
The Startup SG Founder “Start” track

Enterprise Singapore chose Venture Builder and Accredited Mentor Partners (‘VB-AMPs’) to provide 3-month Venture Building (VB) programmes to Singaporeans for the “Train” track.

It supports the search for innovation, turning these innovative ideas into scaleable companies, sourcing for capital, and obtaining product or solution validation from consumers.

On the other hand, the “Start” track allows groups of entrepreneurs to connect with any Enterprise Singapore-appointed Accredited Mentor Partners (AMPs) with their unique business plans.

These AMPs determine and propose applicants who are eligible for funding support based on these factors:

Uniqueness of business idea
Doability of business model
Potential market value
Ability of management team

Startup SG Tech

Startup SG Tech was improved back in 2017 to offer successful applicants better cashflow ease.

This initiative gives companies early-stage funding for the commercialisation of proprietary technology.

It includes both Proof-of-Concept (POC) and Proof-of-Value (POV) grants depending on the technology’s developmental stage.

Do note that this is a competitive grant, which tech startups can use to fast-track the development of their proprietary solutions and generate a scalable business model.

Related Read: How to Apply for Startup SG Tech »

Startup SG Talent

Startup SG Talent helps to bolster a conducive environment for international talents to establish innovative firms in Singapore.

This pillar includes schemes such as:

EntrePass
T-UP
Global Ready Talent Programme (GRT)
Tech@SG Programme
Global Tech Talent Alliance (GTTA)
Innovation & Enterprise Fellowship Programme (IFP)

Startup SG Network

This online portal helps startups to link with players in the local startup ecosystem, like:

Accelerators
Incubators
Investors

This network allows startups and multipliers in 30 technology industries profile themselves, find possible collaborations, and deal flows.

Startup SG Accelerator

This scheme provides funding and non-financial support to incubators and accelerators working in strategic growth industries.

Its purpose is to further enhance programs and expertise in nurturing successful startups. The funding support includes:

Fees for developing programmes that help startups create new products and services and more
Partial operating expenses as determined by Enterprise Singapore, like employee salaries
Costs of hiring mentors and professionals to give guidance

Startup SG Infrastructure

Startup SG Infrastructure gives startups the spaces they require for development, experimentation, and growth.

Here are the current projects:

LaunchPad @ one-north
LaunchPad @ Jurong Innovation District
Singapore Water Exchange

Startup SG Loan

This pillar focuses on government-backed loans that consider young businesses to generate growth opportunities.

The Enterprise Financing Scheme (EFS) under this was launched in 2019 to enhance support and simplify current financing schemes.

Here are the 6 financing areas covered:

SME Working Capital
SME Fixed Assets
Venture Debt
Trade Loan
Project Loan
Mergers and Acquisitions (M&As)

Related Read: How to Apply for Startup SG Loan »

Startup SG Equity

The Singapore government co-invests in a startup along with third-party investors under this scheme.

It aims to encourage and stimulate private-sector investments into innovative, Singapore-based technology startups with intellectual property and international market potential.

This pillar of Startup SG is managed by SPRING SEEDS Capital (SSC), which is the investment arm of SPRING Singapore, as well as SGInnovate, a private corporation owned by the government.

Related Read: How to Apply for Startup SG Equity »

Startup SG Investor

This pillar features tax incentives for individuals or fund management firms that are frequently investing in startups and/or other local businesses.

Some of these incentives include:

Section 13H (S13H) incentive
Fund Management Incentive (FMI)

2. Enterprise Development Grant (EDG)

The EDG enables Singapore firms to develop and excel.

It provides support for projects that help to boost your business, enter overseas markets, or innovate. Here are the 3 pillars it operates under:

Core Capabilities
Market Access
Innovation and Productivity

3. VentureForGood (VFG)

This is a funding grant managed by raiSE Singapore to back social enterprises in different business stages.

It helps new and existing social enterprises just starting out or widening their businesses. The scheme allows for up to S$300,000 in grants, which makes a decent sum for many startups.

4. Financial Sector Technology and Innovation (FSTI) scheme

The FSTI scheme was launched by the Monetary Authority of Singapore (MAS) to support the development of a vibrant ecosystem for innovation.

The scheme aims to:

Attract financial institutions to set up their innovation labs in Singapore
Support the building of industry-wide technology infrastructure
Catalyse the development of innovative solutions

Under FSTI, there are a few sub-schemes:

Innovation Centre
Proof of Concept (POC)
Institution-level Projects
Industry-wide Technological Infrastructure/Utility
Artificial Intelligence (AI) and Data Analytics
Cybersecurity Capability Grant
Digital Acceleration Grant (for FIs and FinTech firms with <200 employees)

5. Productivity and Solutions Grant (PSG)

This grant supports businesses interested in using IT solutions and equipment to boost business processes.

It covers industry-specific solutions under these industries, for example:

Retail
F&B
Construction
Logistics
Landscaping

There is a maximum support level of up to 70%. For qualifying pre-scoped solutions, enhanced support of up to 80% will be extended till 31 March 2023 for the Food Services and Retail industries.

6. Early Stage Venture Fund (ESVF)

The ESVF is a movement under the National Framework for Innovation and Enterprise.

The NRF invests $10 million on a matching basis to seed corporate venture capital (VC) funds that invest in Singapore-based early-stage high-tech companies under this initiative.

Notably, the VC has the option to buy out NRF’s share of the fund within 5 years by returning NRF’s capital with interest.

7. Business Improvement Fund (BIF)

The BIF is available to all Singapore-registered businesses/companies starting on projects with an emphasis on tourism, and is thus run by the Singapore Tourism Board (STB).

It aims to encourage:

Technology innovation and adoption
Redesign of business model and processes in the tourism sector to improve productivity and competitiveness.

Funding support is awarded based on STB’s evaluation of the scope and merits of the project and varies according to SMEs and non-SMEs.

8. Double Tax Deduction for Internationalisation (DTDi)

This tax incentive benefits companies expanding overseas with tax savings – specifically, a 200% tax deduction on eligible expenses for supported market expansion and investment development activities.

It offers support in 4 essential categories:

Market preparation
Market exploration
Market promotion
Market presence

You can automatically claim up to a 200% tax deduction on the first $150,000 of qualifying expenses for these 9 activities under the Automatic DTDi without approval from Enterprise Singapore:

Local trade fairs
Overseas trade fairs
Virtual trade fairs
Overseas market development trips/missions
Overseas investment study trips/missions
Product/service certification
Overseas advertising and promotional campaigns
Design of packaging for overseas markets
Advertising in approved local trade publication

9. Market Readiness Assistance (MRA) Grant

The MRA grant provides eligible SMEs with up to 70% of eligible third-party costs capped at S$100,000 per company per new market.

It covers these activities:

Overseas market set-up (capped at S$30,000)
Overseas market promotion (capped at S$20,000)
Overseas business development (capped at S$50,000)

10. LEAD International Fairs & Missions (LEAD IFM)

LEAD IFM replaced the older International Marketing Activities Programme (iMAP) in 2019.

This grant gives companies financial support for participation in approved business missions and trade fairs guided by the Trade Associations and Chambers (TACs) of Commerce overseas.

It provides up to 70% of funding support on eligible expenses for businesses who take part in the same trade fair more than 3 times, and 50% for those who attend less than 3 times.

11. SkillsFuture Enterprise Credit (SFEC)

The SFEC motivates employers to invest in enterprise and workforce transformation. Qualifying employers can get a one-time credit of S$10,000 to fund up to 90% of expenses on eligible costs for supported initiatives.

12. PACT Programme

This programme strives to boost mutually beneficial partnerships between firms beyond normal business activities.

Examples include capability development and business development.

13. Eureka Network

This is the largest intergovernmental network in the world for global cooperation in innovation and R&D.

It exists in more than 45 countries, including:

Countries in the European Union (EU)
Singapore
Canada
South Africa

Local firms keen on collaborative innovation projects and cross-border partnerships with partner countries can obtain funding support when they take part in different Eureka programmes.

Singapore offers a multitude of useful startup schemes and grants

The above is just a brief overview of all the assistance startups get when they incorporate a company in Singapore.

Additional benefits available to all companies in Singapore include low corporate tax rates, tight intellectual property rights regime, skilled manpower, and good connectivity to emerging markets of Asia.

Suffice to say, if you want to build your dream company, Singapore is the place to be.

And when you decide to do so, note that SCI’s expertise in Singapore company incorporation is unmatched.

We have helped to establish over 10,000 business entities in the last two decades of operations successfully. Choose us to be your corporate services partner like many others before you!

Related Read: Company Registration in Singapore »