Singapore is known for its pro-business environment, supported by a comprehensive range of government grants and funding schemes aimed at promoting enterprise growth, innovation, digitalisation, internationalisation, and capability development. A common question from foreign investors and regional entrepreneurs setting up in Singapore is whether foreign-owned companies can apply for these grants.
The short answer is: yes — but with important conditions and limitations. In this article, we explain the eligibility criteria, practical requirements, and key considerations for foreign-owned companies seeking to access government funding in Singapore.
Can Foreign-Owned Companies Apply?
Yes — foreign-owned companies incorporated in Singapore are generally eligible to apply for government grants, provided they meet the specific eligibility criteria of each scheme. Singapore grants are typically designed to benefit locally registered businesses that contribute to the domestic economy, regardless of the nationality of their shareholders.
What matters is not the nationality of the owners, but the structure and operations of the Singapore-incorporated entity.
Typical Grant Eligibility Conditions
While eligibility varies by scheme, most government grants in Singapore require applicant companies to:
- Be registered and operating in Singapore.
- Have a minimum 30% local shareholding (for many Enterprise Singapore (ESG) grants, such as the Enterprise Development Grant (EDG) and Market Readiness Assistance (MRA)).
- Have an active and ongoing business operation in Singapore.
- Employ at least three local employees (for certain manpower-related schemes).
- Demonstrate financial health and operational capacity to undertake the funded project.
Some grants, particularly those administered by ESG, explicitly prioritise companies with significant local ownership or control. However, other productivity, manpower, and industry-specific grants may be accessible to foreign-owned entities if they actively contribute to Singapore’s economy and workforce.
Commonly Accessed Grants for Foreign-Owned Companies
Depending on shareholding structure and operational profile, some examples of grants potentially accessible to foreign-owned Singapore companies include:
- Productivity Solutions Grant (PSG) — for digital solutions and automation tools.
- Job Redesign Grant (under Productivity Solutions) — for companies with local employees.
- Capability Development or Industry-Specific Incentives — for sectors like logistics, maritime, or advanced manufacturing.
- Startup SG Tech (selectively) — for tech-driven companies meeting local residency and operational criteria.
Structuring Considerations for Grant Eligibility
To increase grant eligibility, foreign investors and overseas companies setting up in Singapore often consider:
Partnering with a local shareholder (30%–51%) to meet minimum local shareholding requirements for certain ESG grants.
Hiring local employees early to qualify for manpower and capability development grants.
Demonstrating substantive business activity within Singapore — beyond passive investment holding functions.
Structuring through a Singapore-incorporated company rather than operating via a branch office or representative office, which are typically ineligible for government grants.
Practical Challenges and Risk Factors
Foreign-owned companies may encounter practical hurdles such as:
- More stringent eligibility reviews by grant agencies.
- Limited access to grants with strong local ownership preferences.
- Delays in application processing for newly established entities.
- Requirements to produce audited local financial statements and tax filings before grant eligibility is confirmed.
It’s advisable to conduct a grant readiness assessment early, especially if government incentives are part of your strategic or financial forecasts.
How Vanice Advisory Can Help
At Vanice Advisory, we offer dedicated Business Grant Advisory services to support companies — whether locally owned or foreign-invested — in navigating Singapore’s complex grant landscape.
As a certified management consultancy, we help businesses:
- Identify suitable grant opportunities aligned with their expansion, digitalisation, or manpower development plans.
- Assess grant eligibility and structure recommendations for improving access to funding.
- Provide strategic advice on project scoping, compliance, and documentation preparation.
- Support businesses in developing clear, defensible submissions that align with the relevant grant criteria.
Our goal is to deliver structured, professional guidance, ensuring you meet regulatory expectations while maximising available incentives — so you can focus confidently on your business growth.
Final Thoughts
While Singapore’s grant ecosystem is highly supportive of enterprise development, not every scheme is equally accessible to foreign-owned companies. The key lies in understanding eligibility nuances, structuring your business strategically, and crafting compliant, goal-aligned applications.
If you’re considering a Singapore market entry or expansion and plan to explore government grant opportunities, early planning and expert advisory support can make a critical difference.
To discuss your business’s grant eligibility or to arrange a consultation, contact us at vanice@vaniceadvisory.com.