Singapore has one of the most straightforward company registration processes in the world. It is also considered the most ideal country in Asia Pacific region to start a company. Thousands of entrepreneur have started companies in the country with the main objective being taking advantage of the lucrative emerging markets and positively influencing growth of the economy.
One of the main challenges that most newly incorporated companies in Singapore face is the lack of enough funding. Today we look at the various sources of financing that a new business in Singapore can use to start its operations.
Government agencies provide cash grants to companies in different industries. Some terms and conditions have to be met as well as rigorous qualifying criteria to avoid any form of fraud. It is imperative to contact the government agency that is related to the niche your business operates to know the various cash grant opportunities available.
Debt financing is a funding option for companies that want to raise capital to support their operations without having to share their profits. In this kind of arrangement, the borrowers are legally expected to make monthly or yearly loan repayments to the lenders by law irrespective of whether the business is profiting or not.
Tax Incentive Schemes
Tax incentives schemes are offered by the government to encourage entrepreneurs to start more businesses. These plans have proven to be effective in not only promote job creations but also boosting the economy. For example, a tax exemption will leave the company with plenty of income to support its operations as they will not be required to pay an annual tax to the government.
The government also allows startup companies to apply for allowances as well as industry-specific tax incentives.
Business Incubator Scheme (BIS)
Business incubator scheme (BIS) is an ideal choice for fledgling business entrepreneurs who do not need any financial assistance, but expert tips and guidance on how to run their start-ups. The scheme provides mentoring and consulting services. So far, mentoring has proven to be very effective in helping new enterprises to make informed decisions especially at their infancy stage.
Equity financing is a new concept that is gaining traction in the country. It entails start-ups seeking financial support from investors in return for a given equity or shared ownership of the company. Note that this option is not only ideal for newly in Singapore but also the established companies.
Once the company is successfully incorporated and given all the necessary permits, consult widely to find an ideal funding source that you can take advantage of to scale up your business.