STARTUPS STAY LONGER

Another major advantage to Singapore incorporated technology-centric businesses is access to SEEDS Capital (SSC), which co-invests in scalable innovative startups with strong intellectual property;

SSC especially funds deep-tech nascent industries such as biotechnology and advanced manufacturing. SSC will take an equity share in the startup and the shareholding varies depending on the valuation of the startup. The investment horizon for SSC is generally five to seven years and may take longer depending on the company’s business traction. SSC’s exit options include all conventional means such as trade sale, IPO and M&A. Contact support@kimbocorp.com for more information.

Economic Development Board of Singapore (EDB) is an active facilitator to help more established Startups setup in Singapore.

The various programs they have includes;

• The Pioneer Certificate Incentive (PC) and the Development and Expansion Incentive (DEI) aim to encourage companies to grow capabilities and conduct new or expanded economic activities in Singapore, by providing tax rebates for income generated from intellectual property;
• The Tech@SG Program aims to help companies establish their core teams in Singapore and more quickly capture business opportunities here and in the region by facilitating and fast-tracing the application of work and employment passes;
• The Research and Innovation Scheme (RISC) provides co-funding support of up to 30% in qualifying R&D project costs such as IP, manpower, training, software, equipment, materials, consultancy. Local manpower may be supported up to 50%;
• The IP Development Incentive allows approved companies a reduced corporate tax rate of either 5% or 10% on a percentage of qualifying IP income derived during the incentive period. The percentage is determined by the modified by the Nexus approach, which directly attributes to capital expenditures spent to derive the IP against income from the IP. Incentive period can be up to 10 years.

The Global Financial Centres Index ranking has put Singapore as the third most dynamic financial centres in the world. Another factor that enhances Singapore’s standings is its readiness to embrace new and more contemporary markets. This means platforms like fintech and blockchains technology have become quite the order of the day here. Such a scenario puts Singapore on par with among the top financial centres like New York. Such is the case that Singapore is now a major hub for cryptocurrency trading in Asia.

In terms of banking, there are now over 120 banks operating in Singapore. Among them, 5 are locally owned of which 2 of them are among the top banks in the world. In terms of numbers, there are now about S$2.5 trillion in asset management companies with a steady growth of about 10%. Meanwhile, there are more than 250 assets and fund management companies here.

If Startup is found evident in their business and technology, we will qualify the startup to receive funding and financing. Work includes;

1. Incorporate the business in Singapore;
2. Vest IP and Patents at the Singapore company level;
3. Issue shares to existing shareholders of the business (ownership doesn't change);
4. Provide or arrange a min of S$50,000 in seed capital;
5. Arrange co-investment by institutional investors which could be up to 7/3 times the initial investment;
6. Provide all permitting and licensing to allow Startup to function properly in Singapore;
7. Appoint a local Chief Operating Officer whom will be the figure head at Singapore level;
8. Ensure that all accounting is audit-ready.

Technically there is no change to the startup's core business, but one of the main criteria is that Startup's must commit to have core activities in Singapore.