Incentives to Set Up a Company in Singapore
Singapore aims to attract innovative entrepreneurs who bring new technologies to the market and add value to the local economy. As a result, a growing number of investors are looking to set up a company in Singapore as the best way to turn their ambitions into reality.
Investors looking to set up a Company in Singapore can take advantage of a range of government-led incentive schemes, including the following:
1. Startup Enterprise Development Scheme (SEEDS)
According to the Singapore Economic Development Board (EDB), investors who have set up a Company in Singapore can apply for SEEDS equity financing. Every dollar raised by the startup from third-party investors is matched by the EDB, up to S$300,000 (US$190,000). The minimum investment by the third party is S$75,000 cumulative. Under this scheme, both the EDB and third-party investors take equity stakes in the company in proportion to their investments.
To take advantage of this scheme, a Singapore Company must be:
- a legal entity that has previously secured total debt and equity financing of not more than S$500,000 (US$317,000);
- involved in the development of innovative products, processes and applications in manufacturing and services;
- incorporated in Singapore and carry out its core activities in Singapore.
2. Innovation Commercialisation Scheme (ICS)
This scheme applies to investors who have set up a Company in Singapore within three years of applying for assistance. Under the ISS, up to 50% of the costs of selected projects are reimbursed to the investor who has set up a Company in Singapore. The eligible costs for reimbursement include:
- Manpower (up to 50%, excluding the salary of controlling shareholders);
- Equipment, Materials, Consumables and Software (up to 50%);
- Professional Services (up to 50%); and
- Intellectual Property Costs (up to 50%).
For more information on this scheme and how it can help support our Clients' decision to set up a Company in Singapore, please follow this link.
3. Enterprise Investment Incentive (Technopreneur) Scheme
Having set up a Company in Singapore, investors may be eligible for support via this scheme, in which the EDB shares the risk of technology-based ventures with investors.
Under the scheme, which is effectively an insurance policy against losses, a startup can issue certificates to its investors for investments of up to S$3 million (US$1.9 million). Investors with these certificates can deduct any investment loss from their taxable income.
For more information on this scheme and how it can help support our Clients' decision to set up a Company in Singapore, please follow this link.
4. Growth Financing Programme
Having set up a Company in Singapore, this programme supports the startup with its overseas market expansion strategies. Every US$2 raised by the company receives an additional US$1 from the EDB, up to a maximum of US$636,000.
For more information on this programme and how it can help support our Clients' decision to set up a Company in Singapore, please follow this link.
Other Information
- Guide to Investing in Singapore
Contact Us
For more information on the incentives to set up a Company in Singapore, please email 
or telephone us at (+65) 6735 0120.
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