While the process of Singapore company formation is fairly straightforward, one must do so with the understanding that setting up is only the first step. There are other challenges a business owner must face in keeping their business thriving and one such issue would be their amount of capital.
To assist business owners in business practices, the governing sectors of Singapore have made loans and grant options available. Here is a guide on what business owners can look out for in terms of receiving financial assistance after their registry of companies in Singapore:
Productivity and Innovation Credit Scheme (PIC)
To better promote the growth of innovation, the Product and Innovation Credit Scheme (PIC) was designed to aid business owners with up to 400% tax deductions or an allowance of up to $400 000 yearly.
To be eligible for PIC benefits, business owners must ensure that they have active business operations in Singapore, with a minimum of at least 3 local employees. They will also have to ensure that their expenditure is within the 6 qualifying activities listed under PIC inclusions.
Wage Credit Scheme (WCS)
The ability to adjust to rising wage requirements in the labour market can be difficult for smaller companies with limited capital. To assist business owners in better adjusting, the Wage Credit Scheme (WCS) co-funds 20% of wage increases for Singapore Citizen employees.
Employers are required to meet certain conditions after Singapore company formation in order to qualify for the Wage Credit Scheme (WCS). These conditions include the payment of wage increases to Singapore citizen employees earning $4000 or less gross monthly wages.
Capability Development Grant (CDG)
Business owners can also apply for grant support to aid efforts in upgrading processes. Those who qualify for the Capability Development Grant (CDG) are SMEs who have successfully gone through Singapore company formation and have begun business operations in Singapore. In addition, the business owners should also own at least 30% local shareholding rights, as well as an annual sales turnover of less than $100m and less than 200 employees. Qualified SMEs can acquire funding support of up to 70% for qualifying project costs!
Technology Adoption Programme (TAP)
The Technology Adoption Programme is designed to assist SMEs in gaining access to technology that can enhance their productivity. TAP aims to encourage collaboration between various sectors in Singapore so that ready to go (RTG) solutions can be created. This can then offer SMEs advantages since they were designed to boost business productivity.
Business owners who wish to participate in the programme are required to be registered in Singapore and already have business operations. They will also need to own at least 30% local shareholding risks as well as not more than 200 employees or annual sales turnovers for less than $100 million.
These are just some of the options one can seek out after registry of companies in Singapore. Business owners are highly advised to find out the best possible options to seek out before they continue with planning their capital.