Essential Government Funding and Resources for Businesses in Singapore

From grants to initiative programs, we will cover the support the Lion City offers.  Just remember that all official financial grant applications are managed through one easy-to-use platform: the Business Grants Portal (BGP).

Targeted Government Funding for Startups and SMEs

Stage 1: Funding Your Foundations and Productivity

This group of grants helps you set up core operations, adopt essential digital tools, and build basic capabilities.

Stage 2: Scaling Capabilities and Innovation

Once operations are stable, these grants help you transform the business, develop proprietary technology, and increase competitiveness.

Stage 3: Expansion and Specialised Sectors

These schemes support moving into new markets or projects in sectors like tourism.

Reminder: Check if you have applied for an Employment Pass (EP) to work and live in Singapore. 

Tax Support and Licensing

Double Tax Deduction for Internationalisation (DTDi) Scheme

The DTDi scheme is a major incentive for companies that expand overseas. Companies can claim a 200% tax deduction on qualifying expansion costs. These include market trips, overseas trade fairs, and certain foreign market set-up costs.

• Access: The Inland Revenue Authority of Singapore (IRAS) provides detailed rules and claim procedures.

Licensing and Regulatory Guidance

Centralised resources and advisory programs simplify navigating licenses.

• Business Registration: The Accounting and Corporate Regulatory Authority (ACRA) guides company incorporation and basic business registration.
• Sector-Specific Licensing: You must get specific licenses from regulators like the Health Sciences Authority (HSA) or the Monetary Authority of Singapore (MAS).
• Government Portals for Compliance:

• Business Grants Portal: For grants and some license applications.
• Enterprise Singapore: For advice on enterprise development.
• Economic Development Board (EDB): Offers help and advice for foreign investors and complex approvals.

Business Development and Financing Support

• Enterprise Financing Scheme (EFS): The EFS is for established SMEs needing large capital for operations or expansion. It offers government-backed loans through banks, which reduces their risk.
• Equity funding: The Startup SG Equity scheme invests alongside private investors in high-growth startups. Various government-supported angel investor programs also connect companies to venture capital.
• Digital transformation grants: Programs like Advanced Digital Solutions (ADS) and Grow Digital help SMEs adopt advanced digital tools. They also help them conduct cross-border transactions safely.
• Networking: The Startup SG Network and government-supported partners provide important connections for mentorship, investment, and working together.

Government Funding in SG: Key Tips and Deadlines

General Deadlines and Application Windows

Most of the major grants (EDG, MRA, PSG) operate on a rolling application basis, meaning there are no hard cut-off dates. However, you should be aware of a few key timeline considerations:

• Financial Year Budget: Grant budget allocations are typically refreshed in the Singapore Financial Year, which starts on April 1st. If your project is highly complex or expensive, submitting applications well before this date ensures your project is reviewed against the current year’s budget.
• Project Commencement: You must receive the Letter of Offer before committing to any vendors or starting your project. The date of application is not the date you can start spending.
• Checking Availability: Always check the Business Grants Portal (BGP) before applying, as funding levels (e.g., 50% vs 70% support) can change based on economic conditions and temporary measures.

Tips for a Successful Government Funding Application

#1. Define Your Project Clearly: The most common reason for rejection is an unclear scope. Your application must detail:

• The problem you are solving.
• Measurable deliverables (e.g., increase productivity by 15%).
• The grant funds will be used exclusively for the approved project.

#2. Verify Eligibility: Before spending time on documentation, confirm you meet the core requirements:

• Local Shareholding: Minimum 30% local equity.
• Financial Health: The company must be in a position to co-fund the project’s costs.
• Core Business: Your project must enhance your core business operations.

#3. Do Not Pay in Advance: Crucially, ensure you only sign contracts or make payments after the grant is approved and you have accepted the Letter of Offer. Claims for expenditure incurred before approval will be rejected.

#4. Use Professionals for EDG: For complex grants like the Enterprise Development Grant (EDG), consider engaging pre-approved Management Consultants. They can help structure your project and application to meet the required quality standards.

Conclusion and Next Steps

The application process, paperwork, and compliance requirements for these incentives can be time-consuming. Partner with experienced corporate services providers in Singapore. This ensures smooth incorporation, grant support, easy licensing, and compliance management. This expert help allows you to focus on business growth and innovation.