Singapore has a vibrant startup ecosystem and offers a range of startup schemes and funds to support entrepreneurs and startup companies.
Table of Content:
1. Introduction
2. Advantages of Availing the Startups Schemes and Funds in Singapore
3. List of Startup Schemes and Funds in Singapore
- Startup SG
- Startup SG Founder
- Startup SG Tech
- Capability Development Grant in Singapore for Startups
- Business Improvement Fund (BIF)
4. Conclusion
Introduction:
Starting a business is not a moonwalk, instead one can face many financial struggles or challenges in setting up an office. However, if you are about to start a business in Singapore, there are many startup schemes and funds available. Probably for many, raising capital would be a great problem. And the Singapore government has taken giant steps to dissolve the capital money problem among startups.
Let us look at the list of Singapore schemes and funding that are beneficial for startups.
Advantages of Availing the Startups Schemes and Funds in Singapore:
Though you start a low-cost business, the investment money may exceed your limitations. All you do is, take the money from your personal savings to start a business. But for further processing, capital money might be a huge hindrance for startups. However, to help the startups in Singapore, the government has launched many start-up schemes and funds. Through these grants, startups can bring their dream business plan into the real world. The startup schemes in Singapore are,
· Easy to avail
· Helps to start and enhance your trade overseas
· Used for technical training too
· Provides tax exemptions
List of Startup Schemes and Funds in Singapore:
1. Startup SG:
There are many startup schemes available under startup SG. All these schemes are vibrant and support startup entrepreneurs financially.
Under Startup SG Grant – Startup SG Founder, Startup SG Tech, Startup SG Talent, Startup SG Network, Startup SG Accelerator, Startup SG Infrastructure, Startup SG Loan, Startup SG Equity, and Startup SG Investor are available.
2. Startup SG Founder:
Via this funding scheme, the startups can find a mentoring match to develop their enterprise. Moreover, the funding is also extended to achieve the business milestones for a year.
Eligibility Criteria to Apply for SG Founder:
– You must be a Singaporean citizen or reside in Singapore.
– If you are applying for the SG Founder startup scheme in Singapore, then you must at least hold 30% of the company’s share.
– 51% of shareholders (locally) is mandatory.
– The enterprise must be a newbie, that is, during the time of the application process, it must be 6 months old (And not more than that).
– The business functionalities must be within the country.
– The applicant must be new (should not have registered and run the company before)
– The applicant must be new for getting the funding.
– The applicant must be the decision maker of the company.
Procedure to Apply for SG Founder:
The applicant can check the list of 17 AMP (Accelerated Mentor Partners) available on the SG website. After completing and submitting of SG founder form to AMP, the applicant can wait for the process to get completed by AMP. Meanwhile, the AMP evaluates the form and checks whether the eligibility criteria match. Finally, the applicant’s form may or may not be approved based on the AMP decision.
Note:
– You must provide the complete business plan while applying for the SG Founder scheme.
– The applicant must choose the AMP for the list after evaluating whether they would be a mutual fit.
3. Startup SG Tech:
The ultimate goal of the SG startup Tech scheme is to motivate technical growth among newbie entrepreneurs. As per this startup grant in Singapore, if the company is well qualified in technology to expand their trade then funding (early stage) is provided. That is called the Proof of Concept scheme. Later funding is provided to the startup (Proof of Value) to develop that technical concept into a live business.
Eligibility: For the Startups:
– The startup company that is applying for an SG Tech grant must be registered in Singapore. And it must also handle operations in the city.
– The startup must have a minimum of 30% shareholdings.
– The company’s turnover must be less than $100 million & the number of the company’s employees must be less than 200.
– The applicant’s company must be less than 5 years old during the SG Tech Grant application process.
The Eligibility for Company Solutions:
– The applicant must have clearly illustrated the technology or science which was applied to start the business.
– The technology must be potential and new.
Procedure to Apply for SG Tech:
The applicants of the SG Tech scheme must submit the registered form along with niche details about the technology to Enterprise Singapore. They will evaluate and notify you whether your application is eligible for getting the grant or not. Evaluating the application takes up to 3 months of time.
Note:
– If the applicant is eligible then a direct application for the POV stage is a better option. rather than applying for POC and waiting for it. If you are having doubt about it then confirm with Enterprise Singapore directly.
4. Capability Development Grant in Singapore for Startups:
Via this grant, SMEs and startups in Singapore can improve their business capabilities in niche areas including product development, high-quality service, business excellence, IP (Intellectual Property), finance management, branding, marketing, etc. This capability development grant is solely controlled by Enterprise Singapore.
Eligibility:
– Must be registered in Singapore
– As with other grants, the applicant must have 30% of shareholdings in Singapore
– Employee number count must be 200 or below.
How to Apply for CDG Startup Grant in Singapore?
Check whether your project will be eligible for this grant or not via a business advisor. You can handle this step, before applying for the CDG. Moreover, the project must be in the starting stage, that is it can be in the development stage only after the grant approval. Later, when the eligibility criteria match your application, read the guidelines given by Enterprise Singapore for further process. Your application will be received by Enterprise Singapore and evaluated. If the application is incomplete, you can resubmit it after the completion.
Innovation & Capability Voucher (ICV): The applicant, if approved, can get up to $5000 via the ICV scheme for startups in Singapore. This scheme supports the traders to upgrade their business capabilities. Each of the capability vouchers in the ICV scheme can be utilized to get assistance from service providers to improve business in those specific areas. It includes innovation, productivity, human resource, and financial management.
You need not confuse names as IVS (Innovation Voucher Scheme) is renamed ICV (Innovation & Capability Voucher) in June 2012. This scheme is so beneficial as it provides funding to upgrade the business capabilities based on current market trends. You can apply from the ICV portal online and provide details about your ideas to the service provider as a pre-application step.
5. Business Improvement Fund (BIF):
Interested to start a trade in the tourism sector? Then this scheme will fit your financial needs for fulfilling it. In order to show betterment among the emerging competition, one must restructure the trade model as per the trend. For this, technology and innovation will be quite helpful. And BIF funding encourages entrepreneurs to master those technologies.
The two pillars of BIF are – core capabilities and innovation & productivity. The BIF grant supports the applicants in two ways. And that is through qualifying costs and non-qualifying costs.
Here, the qualifying costs include the training and testing costs, certification costs, professional services, and also travel costs. Whereas the non-qualifying costs refer to hardware and software costs that are indirectly related to the project. It also includes the marketing costs of the startups and the overall maintenance charges.
Eligibility Criteria:
– As said before, this is a tourism-based scheme. And clearly, projects related to this stuff can apply to BIF.
– If you are intended to take capability development steps to expand your trade, then you become eligible for this funding.
– If the applicant is going to develop any product or service that serves the tourism industry can also apply for it.
Conclusion:
Countless entrepreneurs have already utilized the schemes and funding – in Singapore and are running successful businesses. These are just some of the many startup schemes and funds available to support businesses in Singapore. Entrepreneurs should carefully research and evaluate each startup schemes and funds to determine which best suits their needs and goals.
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Note: The information mentioned above is subject to respective changes from time to time.
FAQS:
Benefits of startup schemes and funds in Singapore?
Startup schemes and funds in Singapore provide several benefits to entrepreneurs, including access to funding, support for innovation, mentorship and guidance, networking opportunities, and access to resources.
These benefits can help entrepreneurs to overcome the challenges of starting and growing a business, reduce costs, and create valuable connections and partnerships. Ultimately, startup schemes and funds in Singapore can help to foster a thriving startup ecosystem, driving economic growth and creating new industries.
Is Singapore good for startups?
Yes, Singapore is considered to be a good place for startups. Singapore’s government has been proactive in creating policies that support startups, such as the Startup SG scheme, which provides funding, mentorship, and other resources to early-stage startups.