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Singapore Investment Incentives
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$1million, upon investment approval). 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$357,000);
- 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. Technology Enterprise Commercialisation Scheme (TECS)
TECS supports the growth and development of innovative and technologically competitive enterprises. The program supports the start up of new enterprises with strong technology intellectual property and a scalable business models. TECS recognizes the risk and costs required for the development of cutting edge technology and hence rewards a grant for competitiveness in commercial and technical viability.
Reimbursement costs can include:
1. Proof of Concept (POC)
For proprietary ideas at conceptualisation stage.
- Up to 100% of qualifying costs for each project, maximum of S$250,000.
2. Proof of Value (POV)
Research and development on a technology project.
- Up to 85% of qualifying costs for each project, maximum of S$500,000
For more information on this scheme and how it can help support our Clients' decision to set up a company in Singapore, go the EDB website.
3. Tax Incentive for Angel Investor Scheme
One Singapore investment option for high net worth entrepreneurs is an incentive program offered via Spring Singapore, called the Angel Investor Tax Deduction Scheme, or AITD. The program aims to encourage investment in Singapore start-ups, via an enticing tax deduction of 50% of the investment cost up to a maximum of $500,000 per year. To qualify the ‘Angel Investor’ must be an individual and possess entrepreneurial experience or senior corporate management experience.
4. Financial and Other Tax Incentive Schemes
The EDB website offers an array of investment incentive schemes for entrepreneurs incorporating in Singapore. Examples include:
Growth Financing Program - this program 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.
Investment Allowance Scheme – gives manufacturing industries an Allowance of 30% or 50% of approved fixed capital expenditure on top of normal 100% capital allowance
Finance & Treasury Centre Tax Incentive - Reduces tax on fees, interest, dividends and gains from qualifying services/activities by 5% or 10%
For more information on this program and how it can help support our Clients' decision to set up a Company in Singapore, go to the EDB website.
Other Information
- Guide to Investing in Singapore
Contact Us
For additional information on the incentives to set up a Company in Singapore, please email email@healyconsultants.com or telephone us at (+65) 6735 0120.
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