Securing capital is the lifeblood of any new venture, and for entrepreneurs in Southeast Asia, Singapore stands out as a premier hub offering robust financial support through government grants for startups. Unlike traditional bank loans or venture capital funding, these grants are non-dilutive, allowing founders to grow without sacrificing equity. That said, the range of schemes administered by Enterprise Singapore can be complex and difficult to navigate without proper guidance.
At Koobiz, we know that building a successful business requires more than a strong idea, it starts with the right corporate and financial foundation. From structuring your company to meet grant requirements to opening a compliant corporate bank account for fund disbursement, we support founders at every stage. In this guide, we outline the key government grants available in 2026, explain eligibility requirements, and walk you through the application process to help you secure funding with confidence.
What Are Government Grants for Startups in Singapore?
Government grants for startups in Singapore are non-dilutive financial assistance schemes provided by agencies like Enterprise Singapore to support business capabilities, innovation, and market expansion.
To understand the ecosystem fully, it is essential to recognize that these are not “handouts” but strategic investments. Here are the core characteristics you need to know:
- Non-Dilutive Funding: Unlike venture capital, you do not give up any equity or ownership shares to investors.
- No Repayment Required: Unlike standard business loans, these funds do not need to be paid back.
- Reimbursement Basis: Grants almost always operate on a reimbursement model. You must have the cash flow to pay for project costs upfront (e.g., hiring consultants, buying software) and claim the money back later.
- Co-Funding Principle: The government rarely covers 100% of the cost. Typically, they support 50% to 70% of qualifying costs, meaning the startup shares the financial risk. Note: Enhanced support rates (e.g., up to 70% for sustainability projects under EDG) are subject to specific timelines, such as the March 31, 2026 deadline.
This framework is designed to ensure that only committed and financially viable businesses participate. For foreign founders in particular, it underscores the importance of having a properly incorporated Singapore entity. Koobiz helps startups overcome these early barriers by ensuring their company structure is fully compliant with ACRA requirements, an essential first step to accessing Singapore’s government grant ecosystem.
Top Government Grants for Startups in 2026
In 2026, Singapore’s startup funding landscape is anchored by four major government grant schemes: Startup SG Founder, Productivity Solutions Grant (PSG), Enterprise Development Grant (EDG), and Market Readiness Assistance (MRA). Each is tailored to a different stage of business growth and strategic objective.
To help you identify the right funding stream, we have grouped these grants based on their specific objectives and target attributes.
Startup SG Founder (For First-Time Entrepreneurs)
Designed specifically for first-time entrepreneurs with innovative business ideas, this grant provides mentorship and capital.
- Funding Amount: Up to S$50,000.
- Mechanism: This is not a direct match of funds raised. Instead, successful applicants must commit S$10,000 in paid-up capital to the business. The grant is then disbursed in tranches based on the achievement of pre-agreed milestones.
- Key Requirement: You must be a first-time founder and apply through an Accredited Mentor Partner (AMP). The mentorship component is mandatory. Note: Foreign applicants generally need to commit to obtaining Singapore Permanent Residency or Citizenship as part of the scheme’s requirements.
Productivity Solutions Grant (PSG) (For Tech Adoption)
PSG is the most accessible grant for SMEs looking to digitize their operations quickly using pre-scoped solutions.
- Scope: Covers the purchase of off-the-shelf IT solutions (e.g., accounting software like Xero, HR systems, customer relationship management tools) and equipment.
- Funding Support: Up to 50% of qualifying costs, with a grant cap of S$30,000 per financial year.
- Efficiency: Because the vendors and solutions are pre-approved by IMDA, the approval process is faster than other grants.
Enterprise Development Grant (EDG) (For Scaling & Innovation)
This is a heavyweight grant intended for companies ready to upgrade their business, innovate, or venture overseas.
- Scope: Projects under EDG fall into three pillars: Core Capabilities (HR, Finance), Innovation and Productivity (R&D, Automation), and Market Access (Overseas expansion).
- Funding Support: Typically up to 50% for SMEs. Note: Sustainability-related projects may enjoy up to 70% support until March 31, 2026.
- Requirements: Requires a detailed project proposal and often necessitates hiring third-party management consultants.
Market Readiness Assistance (MRA) (For Global Expansion)
For startups ready to take their product out of Singapore and into the region (e.g., Vietnam, Indonesia).
- Funding Amount: Up to 50% of eligible costs, capped at S$100,000 per company per lifetime.
- Coverage: Supports costs related to overseas market promotion (PR, trade fairs), business development (matching partners), and market set-up (legal/tax advisory).
According to recent data from Enterprise Singapore, thousands of enterprises have utilized these schemes to pivot and grow. Choosing the right one depends entirely on whether you are at the “ideation” stage (Startup SG) or the “expansion” stage (EDG/MRA).
Are You Eligible for Government Funding?
Yes, you are eligible for most Singapore government funding if you meet three core criteria: registering as a business entity in Singapore, meeting shareholding requirements, and ensuring the business is financially viable.
That said, eligibility is rarely as simple as it looks on paper, especially for foreign founders. Many applications fail due to misunderstandings around these core requirements. Below are the key yes/no checkpoints that grant agencies use to assess eligibility.
1. Is your business registered in Singapore?
You must have a valid Unique Entity Number (UEN) issued by ACRA. You cannot apply for grants as a foreign entity or a representative office. This is where Koobiz supports clients; we handle the incorporation process seamlessly, ensuring your standard industrial classification (SSIC) code aligns with the nature of your business.
2. Do you meet the Shareholding rule?
- For SMEs (PSG/EDG): There is a strict requirement that at least 30% of the shareholding must be held by Singapore Citizens or Permanent Residents.
- For Startup SG Founder: The focus is on the founder’s commitment. Foreign founders can apply but must hold key roles and often commit to residency in Singapore.
- Koobiz Tip: Fully foreign-owned companies targeting SME grants often need to explore alternative structures, such as local partnerships or tailored corporate arrangements.
3. Is the company solvent and viable?
Government agencies will check your financial statements. They want to ensure the company isn’t dormant or facing insolvency. You must demonstrate the ability to pay for the project costs upfront before reimbursement.
How to Apply for Singapore Government Grants
The application method involves a standardized three-step process: registering for a CorpPass account, preparing a detailed project proposal, and submitting through the Business Grants Portal (BGP).
To navigate this administrative process efficiently, follow this detailed flow:
Step 1: Secure Access via CorpPass
CorpPass is Singapore’s official digital identity system for businesses and is mandatory for accessing all government e-services, including grant applications.
Only authorized personnel, such as directors, company secretaries, or appointed representatives, can transact on behalf of the company. CorpPass can be set up once incorporation is completed, and Koobiz routinely assists clients in activating this access promptly to avoid delays at the application stage.
Step 2: Prepare Your Proposal and Financials
For simple grants like PSG, you just need a quotation from a pre-approved vendor. However, for EDG or Startup SG, you need a comprehensive business plan.
- The Proposal: Must clearly state the objective, the current state of the business, the proposed solution, and the projected quantitative outcomes (e.g., “Expected revenue increase of 20% over 3 years”).
- Financials: You will need to upload your latest financial statements. This is why having professional accounting and tax services—like those offered by Koobiz—is crucial. We ensure your books are clean, up-to-date, and ready for scrutiny by Enterprise Singapore.
Step 3: Submission on the Business Grants Portal (BGP)
Log in to the Business Grants Portal. Select the specific grant, fill in the project details, and upload your documents.
- Processing Time: PSG applications can be approved in 4-6 weeks, while EDG proposals may take 8-12 weeks.
- Claims: It is important to note that grant approval does not mean immediate payout. Most schemes operate on a reimbursement basis. Companies must first pay vendors, then submit a claims application with supporting documents such as invoices, payment proofs, and evidence of project completion.
Once approved, you will receive a Letter of Offer. You must accept this within the stipulated timeframe. Remember, you cannot start the project or make any payments to vendors before the grant is approved; doing so usually disqualifies the expense.
Common Challenges and Mistakes When Applying for Grants
Common reasons for grant rejection include misalignment with government economic goals, lack of innovation, or weak financial projections.
While the ecosystem is generous, it is also rigorous. Understanding the pitfalls (Antonyms to success) is as important as knowing the rules.
Grants vs. Equity Financing vs. Business Loans
It is vital to compare these funding sources to ensure you aren’t misusing a grant for a purpose it wasn’t intended for.
| Funding Source | Best Used For | Key Characteristics |
|---|---|---|
| Grants | Capability Building
(e.g., buying tech, branding, process redesign) |
Reimbursement model (requires upfront cash); non-dilutive. PSG is fast; EDG is slower. |
| Equity Financing
(VC / Angel) |
Rapid Growth
(e.g., high burn rate, scaling teams quickly) |
Immediate cash; requires giving up ownership/equity; investor pressure. |
| Business Loans | Working Capital
(e.g., inventory, rent, payroll) |
Retain ownership; requires collateral or cash flow history; must be repaid with interest. |
Koobiz often advises clients to use a hybrid approach: Use equity/loans for working capital and grants for specific project upgrades.
Special Grants for Fintech and Green Tech Startups
Beyond the general grants, there are “Rare Attribute” grants for specific niches.
- Fintech: The Monetary Authority of Singapore (MAS) offers the Financial Sector Technology and Innovation (FSTI) scheme, supporting innovation with significant funding pools.
- Sustainability: The Enterprise Financing Scheme – Green (EFS-Green) is available (until March 31, 2026) to help enterprises access green financing. Additionally, new grants targeting carbon market initiatives are emerging.If your startup operates in these sectors, do not limit yourself to the generic PSG/EDG; investigate these specialized pools of funding.
Tax Incentives as an Alternative to Grants
Sometimes, the best funding is tax saving. Even if you don’t qualify for a direct grant, Singapore offers the Tax Exemption Scheme for New Start-Up Companies (SUTE).
- Benefit: For the first three consecutive YAs (Years of Assessment):
- 75% exemption on the first S$100,000 of normal chargeable income.
- 50% exemption on the next S$100,000.
- Eligibility: Available to most new companies (excluding investment holding and property development companies).
- Relation: This acts as an indirect grant, preserving your cash flow. Koobiz’s tax specialists can help you model these savings into your financial runway.
Conclusion
Navigating the landscape of government grants for startups in Singapore requires more than just an application form; it demands thoughtful planning around corporate structure, financial readiness, and long-term business strategy. While 2026 presents abundant opportunities, they are best leveraged by founders who are properly prepared.
At Koobiz, we empower entrepreneurs to seize these opportunities. From incorporating your Singapore company to meeting local director requirements and opening your corporate bank account, we build the foundation that makes you grant-ready. Don’t let administrative hurdles stop your innovation.
Ready to start your business journey in Singapore?
Visit Koobiz.com today to speak with our specialists about incorporation, tax planning, and banking solutions designed for global founders.
