In Part II, we discussed four Governmental Grants available for start-ups in Singapore. In this article, we will look at the remaining five available Grants.
IMDA SMEs Go Digital
Under the Start Digital Pack, SMEs can take up any two digital solutions, free for at least six months with a minimum 18-month contract period from the following categories: Accounting, HR Management System & Payroll, Digital Marketing, Digital Transactions, and Cybersecurity.
Seek this if you:
- Are a newly incorporated SME or start-up;
- Want to improve your organisation’s digital capabilities.
IMDA SMEs Grow Digital
Under the Grow Digital Pack, SMEs can participate in Business-to-Business (B2B) and Business-to-Consumer (B2C) e-commerce platforms to sell overseas without a need for physical presence. SMEs will benefit from:
- Smart matching to connect SME suppliers with potential overseas clients.
- Optimised listings on overseas e-marketplaces.
- Prompt access to financing offers facilitated via the platforms.
- Cross-border e-payment facilities that alleviate currency risks.
- Strong partners network such as with logistics companies to facilitate last mile delivery.
- Training and support to build competencies for cross-border e-commerce.
Eligible SMEs can receive up to 70% funding to participate in the platforms under Grow Digital. Adoption of the Grow Digital solutions does not count toward Productivity Solutions Grant funding utilisation, capped at a maximum of S$30,000 per SME per year.
Seek this if you:
- Have at least 30% local shareholding;
- Have a group annual turnover not exceeding S$100 million per annum based on the most recent audited report, or group employment not exceeding 200 employees;
- Have annual overseas sales not exceeding S$100,000 (online) for each of the three preceding years.
Business Improvement Fund for Tourism
Tourism companies can seek up to 70% (50% for non-SMEs) of qualifying costs for solutions. This is provided they take on capability development initiatives or create innovative technology products and services for tourism businesses. This applies for improvements in their business foundations or innovations and productivity process improvements.
Qualifying costs include professional services, testing and certification costs for the product, training costs, equipment and software costs and travel costs that are tied to the project. This does not include defraying the costs of basic business functions.
Tourism Product Development Fund
If your SME supports the creation, development of new tourism products and/or major rejuvenation existing tourism products to increase Singapore destination attractiveness to visitors, your SME may receive funding support of up to 50% of qualifying costs.
Miscellaneous Business Grants
Enterprise Singapore offers a series of partial business grants for eligible purchases of Equipment and Solutions by SMEs. Eligible areas including Food Manufacturing and Information Technology solutions. The full list of equipment and solutions for 2018/2019 may be found here.
CONCLUSION
This was a brief overview of the grants that start-ups may receive when they are incorporated in Singapore. In the next article, we will explore Government-assisted financing options for SMEs and start-ups.
At Silvester Legal, we work extensively with start-ups to understand our Clients’ needs. We want our Clients to take full advantage of the opportunities available to them as they pursue their business ventures.
Disclaimer: The materials prepared here are for general information purposes only to inform you about Silvester Legal LLC, our services and related matters. The information presented is not legal advice and is not to be acted on as such.
