Singapore has an ideal environment for entrepreneurs to start a business of their own. The government initiates programs that provide easy access to local support and global business network to stay strong amidst the fierce market competition. Basically, new business owners need funds, grants, and Singapore business loans to stay on course during the first few years.
Here is the list of government’s support initiatives for start-ups:
- Start-up SG
It offers one-stop-source of capability-enhancement training funds, grant, and loans. In this program, the Singapore government together with a third-party which is willing to invest a minimum of S$50,000 partners with the business owner. It also offers start-up Singapore business loans such as SME Venture loan (up to S$5,000), SME Working Capital Loan (up to S$300,000), SME Micro Loan (up to S$100,000) and SME Equipment & Factory Loans (up to S$15M).
New companies can avail a maximum of 8 vouchers to upgrade or strengthen core operations such as financial management, human resources productivity level and facilities innovation. Each voucher costs S$5,000.
Angel investors who invest at least S$100,000 to qualified start-ups enjoy a 50% tax deduction of the invested amount during the end of 2-year period.
This program which is initiated by Singapore’s Inland Revenue Authority offers up to 60% cash pay-out (S$100,000) or 400% tax deductions (S$400,000) to business owners who undergo productivity improvements and innovations.
The National Framework for Innovation (NFR) allocates S$10 million to match the fund of corporate Venture Capital (VC) and assists start-up high-tech companies in Singapore.
- Financial Sector Technology & Innovation (FSTI)
This scheme is funded by Monetary Authority of Singapore (MAS) to create a vibrant ecosystem of innovations and development of solutions including financial industry. MAS can provide 50-70% funding support (up to S$200,000) for a period of 18 months. This 5-year program has S$225 million budget and aims to attract technology firms to set up labs in Singapore.
- Building Information Model (BIM) Fund
Start-up companies can avail up to S$30,000 subsidy to fund hardware or software purchases, consultancy and training purposes.
- Business Improvement Fund (BIF)
Tourism-related businesses can get funding assistance for Singapore Tourism Board (STB) through BIF. Qualified SME’ receive up to 70% costs of projects while non-SMEs are awarded up to 50% fund assistance to improve competitiveness.
The bottom line is, Singapore is a great place for start-up companies. As a regional business hub in Asia, the country also offers strict intellectual property rights, good connection to emerging markets, low corporate rates and skilled manpower. In terms of financing, there are private and online credit companies offering Singapore loans from a legal money lender to business owners.