Start Your Company in Singapore with Help from the Government
Getting your business started can be a doozy. Where exactly do you begin? There is so much to consider if you want to secure your business’ success – from capital, constant funding, and location. Sadly, lots of companies fall short of securing these essentials which ultimately leads to their failure. Sometimes, start-up businesses might need a strong support system to ensure success, and that’s exactly what the Singapore government has been trying to provide.
Singapore is a start-up friendly nation, which is why countless companies and businesses have flocked to this island city-state to secure their position in the global market. But what exactly is it about Singapore that has made it the giant start-up support success that it is?
Government-Granted Initiatives for Start-Ups
Finding a stable and constant funder for your project, business, or company is one of the hardest things to achieve. People don’t want to invest in something that they think might fail and so small business owners often find investors trying to avoid them. Because of this mentality, small companies end up falling short of profit and ultimately close down. It’s a vicious cycle that could kill any enterprise. But the Singapore government has seen all that, and that’s why they have granted initiatives for start-up companies in order to assist them with funding problems. With government aided financial assistance schemes, cash grants, tax incentives, and many other government-granted assistance schemes, start-up companies won’t have to worry about finding a source of funds.
A Closer Look at Government-Granted Initiatives
All in all, there are 5 different funding initiatives that government agencies grant to start-up businesses.
1. Equity Financing Schemes – There are some start-up businesses that don’t have the capital to jump start their plans. That’s when equity financing schemes come into the picture. Investors lend small business owners an amount to use as capital, provided that they receive shares of ownership. SPRING Start-Up Enterprise Development Scheme, Business Angels Scheme, and Early-Stage Venture Funding Schemes are all capable of performing this service for businesses in need.
2. Cash Grants – Countless government agencies offer cash grants like ACE Start-Ups Scheme, and Technology Enterprise Commercialization Schemes, which offer start-up companies cash grants tailored to cover a percentage of needed funds. Business owners then are required to fill in what’s left of the capital they need.
3. Business Incubation Schemes – If you feel your business needs funding as well as guidance, then the business incubation scheme is for you. Business incubators are physical spaces that allow start-up businesses to perform functions while being given access to shared services, guidance for operating their business, and financial assistance. This is particularly ideal for companies in their early-stage development.
4. Tax Incentive Schemes – It’s no surprise that a significant percentage of our income goes to taxes, but Singapore allows start-up companies to gain exemption from taxable income for the first three years of operations, allowing them to make bigger profits and afford to pay for improvements and enhancements to further strengthen their foundation in preparation for the big leagues.
5. Debt-Financing Schemes – Raising a capital without having to take a chunk out of your profit is possible with debt financing schemes. There is one thing to beware of though when availing for this type of government-granted assistance, and that is repayments have to be made on time regardless of whether or not you’re making a profit. So, it’s important to take a good long look at your projections before you take this chance.
