Many successful start-up companies across different industries helped in revolutionizing the way people live. Emerging start-ups promote modernization and creativity which are both critically important in this fast-changing world that has grown dependent on innovation and technology. One of the key pain points of most start-ups is rooted in the lack of sufficient funding.
Understanding the wealth of opportunities that enterprise development offers, Singapore works hard to provide entrepreneurs in the country with a pro-business environment. The government recognizes the importance of the start-up industry and has since created funding and assistance schemes to support its development and aid in its smooth Singapore company formation.
Among these initiatives are the following:
Cash Grants. Entrepreneurs who are looking to create a start-up in Singapore can take advantage of various grants offered by various Singapore government agencies. For most parts, cash grants only provide partial fund assistance. The start-up entrepreneurs either provide or look for investors to augment fund requirements to become fully operational. There is a certain set of qualifications for start-ups to avail of these grants. The government grants support start-up initiatives that support R&D, social causes, and innovation.
Seed Funding. This nature of funding typically comes from private business angel investors who provide funds to companies in its early stages. To encourage more funding from investors, the government offers start-ups based in Singapore with a dollar-matching scheme. To put it simply, the government provides qualified start-ups with a dollar for every dollar the company gets from private investors.
Tax Incentive Schemes. Profit and cash flows are critical factors in any start-up endeavor. Hence, Singapore devised and offered a wide array of tax schemes including the deduction, reduction, and exemption of corporate taxes. The tax exemption is offered to start-ups that were incorporated in Singapore. The first S$100,000 chargeable revenue during the company’s first three years of tax assessment will not be taxed by the government. Meanwhile, RISE or Research and Development Incentive for Start-Up Enterprise offers cash grants to start-ups in the R&D industry within its first three (3) years of tax assessment.
Non-Financial Assistance: While funding is one of the chief concerns of start-up firms, some require other forms of assistance needed for company operations to push through. One of the non-financial assistance offered by the government is the Home Office Scheme. This scheme is offered to Singapore-based start-ups and is aimed at lowering business cost for office rental by encouraging entrepreneurs to work from home instead. On the other hand, RentDirect aims to make the rental of State buildings easier by allowing start-ups to facilitate a direct rental offer to Singapore Land Authority. With a more efficient access to a physical office in Singapore, start-ups can kick-start operations in a timelier manner.
