After setting up a business in Singapore, they are free to begin business operations. As a new startup company, there are bound to be several challenges one has to face. Lack of capital can be perceived as one of the major reasons contributing to slow business growth. Fortunately enough, business owners do not have to fret over their lack of capital with the assistance of financial schemes.
If you have just completed Singapore business formation, here are some financial assistance schemes you can consider:
Startup SG Tech
The Startup SG Tech Grant is created with the goal of encouraging development of proprietary technology solutions. This competitive grant allows new SMEs and startups to develop their technology ideas from concept to trial testing by providing financial aid.
As of the moment, all applicants for the Startup SG Tech Grant should be startup companies who have cone through Singapore business formation.
They should also be startups that:
- Were registered for 5 or less years at the time of their grant application
- Own a minimum of 30% local shareholding rights
- Have less than 200 active employees
- Have the core of their business activities carried out in Singapore
- Have a group annual sales turnover of $100 million or less
Tax Exemption Scheme (for New Startup Companies)
Another financial assistance scheme to look out for would be the Tax Exemption Scheme. Designed to support the growth of local enterprises, this tax exemption scheme offers qualifying start ups full exemption for the first normal chargeable income ($100000). Further 50% exemptions will be given to the next normal chargeable income ($200000) for their first three consecutive years of assessment.
To qualify under the Tax Exemption Scheme (for New Startup Companies), companies must:
- Undergo Singapore company registration and be incorporated in Singapore
- Become a tax resident in Singapore ( for that year of assessment)
- Have no more than 20 shareholders who individually hold a minimum of 10% issued ordinary shares under their own names throughout basis period of that year of assessment
SPRING Startup Enterprise Development Scheme
Business owners with startup companies specialising in the development of innovative processes for global marketing can get equity based co financing from SPRING Seeds Capital. In such a manner, business owners can raise funds for their startup company after they have proceeded with Singapore business formation.
SPRING Seeds Capital co-invests with other third-party investors in local startups that are commercially viable and innovative. In order to benefit from this development scheme, there are criteria that the business has to meet.
Startup Companies must meet these conditions:
- They have has their Singapore company incorporation process completed for less than 5 years
- They have a minimum paid-up capital of $50 000
- They are to carry out their core business activities in Singapore
- They have to provide substantial intellectual or innovative content and evidence for their products and services
They have to demonstrate high growth potential and scalability within international markets