Singapore Grants Without 30% Local Shareholding

Most Singapore SME grants — PSG, EDG, MRA, and Enterprise Financing Scheme loans — require at least 30% local equity held by Singapore Citizens or Permanent Residents. If your company is majority foreign-owned, those grants are off the table. This guide covers the grants and tax incentives that skip that requirement entirely.

Best-Fit Grants for Foreign-Owned Companies

Start Here

• If you need R&D tax savings → Enterprise Innovation Scheme (EIS)
• If you need overseas expansion tax relief → Double Tax Deduction for Internationalisation (DTDi)
• If you need startup co-funding → Startup SG Founder or Startup SG Tech
• If you need workforce cost support → Progressive Wage Credit Scheme or SkillsFuture Enterprise Credit
• If you need energy-efficient equipment → Energy Efficiency Grant (EEG)

Eligibility and Timing Rules

1. Apply before spending. All grant-funded schemes require approval before you sign contracts or make payments. Backdated claims are rejected.
2. Match your ACRA entity. Vendor quotes, invoices, and contracts must reference the exact UEN and entity name on your ACRA Bizfile.
3. Check individual scheme rules. Some schemes below require Singapore tax residency, minimum local employees, or specific sector criteria — even without the 30% equity rule.

Quick Comparison

Tax Incentives (No Shareholding Requirement)

1) Enterprise Innovation Scheme (EIS)

Use EIS when: Your company spends on R&D, IP registration, training, or innovation projects in Singapore.

Good fit examples:

• Tech company with in-house R&D team developing software in Singapore
• Manufacturer investing in process innovation with a local polytechnic
• Any company sending staff for SkillsFuture-aligned training courses

How much: Up to 400% tax deduction on the first S$400,000 of qualifying expenditure per category (R&D, IP, training, innovation projects). Cash payout option available if you have 3+ local employees. Extended to Year of Assessment 2028, per IRAS guidelines.

When: Claim in your annual income tax return. No pre-approval needed for tax deductions — include in your 2-Line/4-Line statement.

How (fast path):

1. Incur qualifying expenditure during the basis period
2. Submit details via IRAS “Submit EIS Enhanced Deduction/Allowance Records” digital service
3. Include enhanced deductions in your Income Tax Return

Where:

• See more: Enterprise Innovation Scheme

2) Double Tax Deduction for Internationalisation (DTDi)

Use DTDi when: Your company is expanding overseas — attending trade fairs, setting up foreign offices, running overseas advertising, or protecting IP abroad.

Good fit examples:

• SaaS company exhibiting at overseas tech conferences
• F&B brand setting up a regional office in Southeast Asia
• Manufacturer protecting patents in target export markets

How much: 200% tax deduction on the first S$150,000 of eligible expenses per year (automatic, no approval needed). Additional deductions available with EnterpriseSG approval for amounts exceeding S$150,000, as of February 2026.

When: Auto-DTDi applies at tax filing. For approved DTDi, submit application via ESIMS before the project starts.

How (fast path):

1. For auto-DTDi: incur expenses on qualifying activities, claim in tax return
2. For approved DTDi: register on ESIMS, submit application before project starts
3. After project: submit evaluation forms, obtain Letter of Support
4. Attach Letter of Support to IRAS tax return

Where:

• See more: Double Tax Deduction for Internationalisation

3) Refundable Investment Credit

Use this when: Your company is making significant investments that bring substantive economic activity to Singapore — R&D facilities, digital services hubs, regional headquarters, or decarbonisation solutions.

Good fit examples:

• Global tech firm setting up an R&D centre in Singapore
• Commodity trading company expanding Singapore operations
• Company investing in decarbonisation infrastructure

How much: Tax credits offset corporate tax payable. Refundable upon qualifying investments. Specific credit amounts vary by investment type and scale, per EnterpriseSG.

When: Apply before committing to the investment.

How (fast path):

1. Apply via Business Grants Portal (BGP) using Corppass
2. Receive approval from EnterpriseSG
3. Make qualifying investment and claim credits

Where:

• See more: Refundable Investment Credit

4) Listing Corporate Income Tax Rebate

Use this when: Your company is planning a primary or secondary listing on a Singapore exchange.

Good fit examples:

• Foreign subsidiary planning an IPO on SGX
• Company considering dual listing with new shares in Singapore

How much: Corporate income tax rebate (specific amounts vary). Must remain listed for minimum 5 years. Effective for listings on or after 19 February 2025, per EnterpriseSG.

When: Apply after listing approval.

How (fast path):

1. Complete listing on Singapore exchange
2. Apply via BGP using Corppass
3. Commit to incremental local spending, fixed asset investments, and skilled employment

Where:

• Check the EnterpriseSG official page for current requirements

Startup Programmes (No Shareholding Requirement)

5) Startup SG Founder

Use Startup SG Founder when: You are an early-stage founder (company under 6 months old) seeking mentorship and seed capital.

Good fit examples:

• Foreign founder incorporating a Singapore company to build a tech product
• First-time entrepreneur needing structured mentorship and capital co-matching

How much: Up to S$20,000 at 50% support (requires 1:1 co-matching capital injection). Co-matching can include convertible notes or SAFE notes from Accredited Mentor Partners (AMPs), as of February 2026.

When: Apply within 6 months of ACRA registration. Letter of Recommendation from an AMP is required before application.

How (fast path):

1. Find an Accredited Mentor Partner (AMP) from the official list
2. Obtain Letter of Recommendation from AMP
3. Inject co-matching capital (min. 50% reflected on ACRA Bizfile)
4. Submit application via Business Grants Portal

Where:

• See more: Startup SG Founder

6) Startup SG Tech

Use Startup SG Tech when: Your startup (under 10 years old) has proprietary technology with IP ownership and is conducting core R&D in Singapore.

Good fit examples:

• AI startup with a novel algorithm protected by patents
• Biotech company developing proprietary diagnostic technology
• Hardware startup building custom sensors with Singapore-based engineering team

How much: Milestone-based funding awarded upon completion of each milestone. Amounts vary by project scope. Contact EnterpriseSG for specific details.

When: Company must be under 10 years old with proprietary technology and IP/IA ownership.

How (fast path):

1. Contact EnterpriseSG to discuss eligibility
2. Prepare documentation on proprietary technology and IP ownership
3. Submit application with milestone plan

Where:

• See more: Startup SG Tech

7) Startup SG Equity and SEEDS Capital

Use these when: Your startup needs co-investment alongside venture capital funding. SEEDS Capital co-invests with approved VCs in startups with nascent technologies and global market potential.

Good fit examples:

• Deep tech startup raising Series A with a VC that partners with SEEDS Capital
• Startup with strong IP and a path to global markets seeking government co-investment

How much: Co-investment amounts vary. SEEDS Capital invests alongside approved VC partners.

When: Coordinate with your VC partner. The VC must be an approved co-investment partner.

How (fast path):

1. Secure investment commitment from an approved VC partner
2. VC submits co-investment application via BGP
3. SEEDS Capital evaluates and co-invests

Where:

• See more: Startup SG Accelerator

Workforce Support (No Shareholding Requirement)

8) SkillsFuture Enterprise Credit (SFEC)

Use SFEC when: Your company has been contributing Skills Development Levy and employing local workers. The S$10,000 credit offsets costs of workforce transformation programmes.

Good fit examples:

• Company sending employees for SkillsFuture-aligned training
• SME using the credit to offset PSG, EDG, or MRA co-payment costs

How much: S$10,000 one-off credit, covering up to 90% of out-of-pocket expenses. Up to S$7,000 for enterprise transformation programmes (PSG, EDG, MRA, ELT); unlimited allocation for workforce training, as of February 2026.

When: No application needed. Eligible employers are automatically identified and notified by EnterpriseSG.

How (fast path):

1. Check eligibility: contributed S$750+ SDL and employed 3+ SG Citizens/PRs monthly during qualifying period
2. Log in to BGP or SkillsFuture for Business portal to view credit balance
3. Submit claims to respective agencies for completed programmes
4. Automatic quarterly disbursement via GIRO or PayNow Corporate

Where:

• See more: SkillsFuture Enterprise Credit

9) Progressive Wage Credit Scheme (PWCS)

Use PWCS when: Your company is increasing wages for resident employees, whether mandated or voluntary.

Good fit examples:

• Company raising wages for lower-wage workers to meet Progressive Wage Model requirements
• Employer voluntarily increasing salaries above the mandatory threshold

How much: Government co-funds a portion of qualifying wage increases for resident employees. Automatic — no separate application required, per IRAS.

When: Claim via annual tax return. Qualifying wage increases are assessed automatically.

How (fast path):

1. Implement qualifying wage increases for resident employees
2. File tax return — IRAS assesses eligibility automatically
3. Credit applied to tax payable

Where:

• See more: Progressive Wage Credit Scheme

Industry and Equipment Grants (No Shareholding Requirement)

10) Energy Efficiency Grant (EEG)

Use EEG when: Your business needs to upgrade to energy-efficient equipment — LED lighting, HVAC systems, refrigerators, electric vehicles, or data centre infrastructure.

Good fit examples:

• Restaurant upgrading to energy-efficient cooking hobs and refrigerators
• Logistics company switching to electric forklifts
• Data centre investing in efficient cooling and storage systems

How much: Co-funding for pre-approved energy-efficient equipment. Support levels vary by equipment category and sector. Check the official portal for current rates.

When: Apply before purchasing equipment. Project must not have started at time of application.

How (fast path):

1. Identify qualifying equipment from the approved categories
2. Apply via Business Grants Portal (BGP) using Corppass
3. Receive approval before making any purchases
4. Purchase equipment and submit claims

Where:

• See more: Energy Efficiency Grant

11) Advanced Digital Solutions (ADS)

Use ADS when: You are a solution provider or industry leader proposing mass-deployable digital solutions for SMEs through IMDA’s Call for Proposals.

Good fit examples:

• IT vendor proposing an AI-powered inventory management solution for F&B SMEs
• Trade association partnering with a tech company to digitise member operations at scale

How much: Grant amounts vary by Call for Proposals. Competitive evaluation based on solution scalability and deployment plan.

When: Submit proposals in response to active CFPs published by IMDA.

How (fast path):

1. Monitor IMDA for active Calls for Proposals
2. Prepare proposal demonstrating mass deployment capability
3. Submit via BGP

Where:

• See more: Advanced Digital Solutions

12) LEAD Programme and Trade Fairs

Use LEAD when: Your Trade Association or Chamber (TAC) is running enterprise development projects, market access missions, or capability upgrading programmes.

Good fit examples:

• TAC organising a Singapore Pavilion at an overseas trade fair
• Industry chamber running a business mission to a target export market
• Professional body developing capability-building programmes for members

How much: Up to 70% of eligible costs for TAC-led projects. Trade fair and business mission costs reimbursed through TAC organisers, as of February 2026.

When: Apply before project starts. Individual companies participate through their TAC — not directly.

How (fast path):

1. Check EnterpriseSG Events Calendar for scheduled trade fairs and missions
2. Contact your TAC organiser to register interest
3. TAC submits application to EnterpriseSG on your behalf
4. After event: TAC claims reimbursement and disburses to participating companies

Where:

• Check the EnterpriseSG LEAD page for current opportunities

What Does 30% Local Equity Actually Mean?

The 30% local shareholding rule means that at least 30% of the company’s ordinary shares must be held — directly or indirectly — by Singapore Citizens and/or Singapore Permanent Residents. This is determined by “ultimate individual ownership,” not just the immediate shareholder on record.

How it is calculated:

• If Company A holds 60% of your company, and Company A is 100% owned by a Singapore Citizen, that counts as 60% local equity
• If a foreign holding company owns 80% and local individuals own 20%, you fall below the 30% threshold
• ACRA Bizfile records are the primary verification source

Grants that require 30% local equity: PSG, EDG, MRA, all Enterprise Financing Scheme variants (Working Capital, Trade Loan, Project Loan, Fixed Assets, Venture Debt, M&A, Green), Co-Innovation Programmes, and Sustainability Reporting Grant.

Fast Application Checklist

1. Confirm your company is registered with ACRA and has a valid UEN
2. Set up Corppass with GSIB access (allow 2-3 weeks for processing). See our Corppass Setup Guide
3. Enable PayNow Corporate or GIRO for grant disbursements
4. Check individual scheme eligibility on the official portal
5. Prepare supporting documents (ACRA Bizfile, financial statements, project plans)
6. Apply before signing contracts, making payments, or starting the project

Suggested Application Order

For most foreign-owned companies:

1. EIS — Claim in your next tax return. No pre-approval needed for tax deductions. Immediate benefit.
2. DTDi (auto) — If you have any overseas expansion expenses, claim the automatic 200% deduction at tax filing.
3. SFEC — Check your BGP portal for available credit. Use it to offset training costs.
4. PWCS — Automatic if you’ve raised wages. No action needed beyond filing your tax return.
5. EEG — If you need equipment upgrades, apply before purchasing.
6. Startup SG programmes — If your company is early-stage with proprietary technology.

Common Pitfalls

Assuming all Singapore grants require local shareholders. Many foreign-owned companies miss out on tax incentives and startup programmes because they assume the 30% rule applies universally. It does not.

Claiming expenses before approval. For EEG, ADS, and Startup SG grants, you must receive approval before incurring costs. Backdated claims are rejected.

Missing the auto-DTDi claim. The first S$150,000 of internationalisation expenses qualifies automatically — but you still need to claim it in your tax return. Many companies overlook this.

Not meeting the local employee threshold for EIS cash payout. The 400% tax deduction is available to all Singapore-registered businesses, but the cash payout option requires at least 3 full-time local employees.

Confusing SFEC eligibility. SFEC requires prior SDL contributions of S$750+ and 3+ local employees. If your company is newly set up with only foreign staff, you won’t qualify yet.

Not a Fit

These grants require 30% local equity held by Singapore Citizens or PRs. Foreign-majority-owned companies cannot apply:

• Productivity Solutions Grant (PSG) — pre-approved IT and equipment
• Enterprise Development Grant (EDG) — business transformation projects
• Market Readiness Assistance (MRA) — overseas market expansion
• Enterprise Financing Scheme — all loan variants (Working Capital, Trade, Project, Fixed Assets, Venture Debt, M&A, Green)
• Co-Innovation Programmes — joint innovation with government agencies
• Sustainability Reporting Grant — ESG reporting support

If your company plans to restructure shareholding to meet the 30% threshold, verify the change on ACRA Bizfile before applying. EnterpriseSG checks ultimate individual ownership, not just the registered shareholder.

Glossary (Quick Definitions)

• ACRA: Singapore’s business registry authority; your registered entity name and UEN are used on all grant applications.
• UEN: Unique Entity Number assigned to every Singapore-registered business.
• BGP: Business Grants Portal — where most grant applications and claims are submitted.
• Corppass: Login system used to access BGP and other government digital services.
• SDL: Skills Development Levy — mandatory contribution by employers for each employee.
• AMP: Accredited Mentor Partner — approved mentors for Startup SG Founder programme.
• PayNow Corporate / GIRO: Payout methods for grant disbursements from government agencies.
• DTDi: Double Tax Deduction for Internationalisation — 200% tax deduction for overseas expansion expenses.

Frequently Asked Questions

Can a fully foreign-owned company get Singapore grants?

Yes. Several grants do not require local shareholding, including the Enterprise Innovation Scheme (EIS), Skills Future Enterprise Credit (SFEC), Energy Efficiency Grant (EEG), and Progressive Wage Credit Scheme (PWCS). Your company must be registered in Singapore with a valid UEN, but it can be 100% foreign-owned.

Which grants require 30% local shareholding?

The main grants requiring at least 30% local shareholding are the Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG), and Market Readiness Assistance (MRA). These are administered by EnterpriseSG and represent some of the largest SME grants available.

What is the easiest grant for foreign-owned companies?

The Enterprise Innovation Scheme (EIS) is the most accessible. It provides up to 400% tax deduction on qualifying R&D expenditure with no local shareholding requirement. If you are already doing R&D or innovation work in Singapore, you may qualify without changing anything about your company structure.

Can foreign companies get EDG or PSG?

Not directly. Both EDG and PSG require at least 30% local shareholding. Some foreign-owned companies restructure by bringing in a local shareholder or setting up a joint venture to meet this requirement, but this must be a genuine arrangement — not just a paper exercise to qualify for grants.

Do I need to restructure my company to get grants?

Not necessarily. There are enough grants without local shareholding requirements — such as EIS, SFEC, EEG, PWCS, and ADS — that many foreign-owned companies can access meaningful support without restructuring. Only consider restructuring if the grants requiring local shareholding (EDG, PSG) are critical to your business plans.

Related Guides

• Grant Pitfalls Guide — Common mistakes that get applications rejected
• Singapore Grants Glossary — Full glossary of grant terminology
• Corppass Setup Guide — Step-by-step Corppass setup for BGP access
• Startup vs SME Eligibility Matrix — Which grants match your company stage
• Startup SG Decision Matrix — Choose between Founder, Equity, and Tech

Official Links

• Enterprise Innovation Scheme (EIS) — IRAS
• Double Tax Deduction for Internationalisation — Enterprise Singapore
• Startup SG Founder — Startup SG
• Startup SG Tech — Startup SG
• Startup SG Equity — Enterprise Singapore
• SEEDS Capital — Enterprise Singapore
• SkillsFuture Enterprise Credit — Enterprise Singapore
• Progressive Wage Credit Scheme — IRAS
• Energy Efficiency Grant — GoBusiness
• Refundable Investment Credit — Enterprise Singapore
• Advanced Digital Solutions — IMDA
• LEAD Programme — Enterprise Singapore
• BGP (Business Grants Portal) — GovTech
• Corppass — Sign up and user guides