The Enterprise Development Grant (EDG) was created to help Singapore companies grow and transform. The grant supports projects that will help companies upgrade their business, innovate or venture overseas.
To be eligible for the Enterprise Development Grant, a company needs to:
- Be a registered business entity in Singapore and be operating
- Have a minimum of 30% local shareholding
- Be in a financially viable position to start and complete the project
This would mean that is a grant for local companies and to show that the company is financially viable, the company would have to provide their financial statements during the application process.
The grant funds qualifying project costs with the maximum support level at 80% from 1st April 2020 to 30th September 2021. The qualifying costs are third party consultancy fees, software and equipment and internal manpower cost.
There are three pillars of the EDG:
- Core Capabilities
Projects under Core Capabilities will help companies prepare for growth and transformation. There are 5 pillars under Core Capabilities. Business Strategy Development, Financial Management, Human Capital Development, Service Excellence and Strategic Brand and Marketing Development.
Companies can engage an approved consultant to help the company grow and transform. An example of this would be if a company would like to engage a consultant to help it form international corporate structures to minimise tax liabilities and to strengthen its Human Resource (HR) capabilities. The maximum support of 80% funding can be provided on the consultancy fees paid.
- Innovation and Productivity
Projects under Innovation and Productivity support companies that explore new areas of growth or look for new ways to enhance efficiency. There are 3 pillars under Innovation and Productivity. Automation, Process Redesign and Product Development.
Companies may want to design a customised IT solution for their business. For example, a talent agency may decide to build software to manage the payment and jobs of its talent. The cost of building the system to automate their work process can be supported by the EDG. They can claim up to 80% of the qualifying costs. Do note that there are solutions under the Productivity Solutions Grant (PSG) and if there are, companies should claim under PSG instead.
- Market Access
Projects under Market Access support Singapore companies that are willing to venture overseas. There are 3 pillars under Market Access. Mergers and Acquisitions (M&A), Pilot Project and Test Bedding and Standards Adoption.
Companies that want to expand overseas can use this grant to aid in the M&A decision making process or to help defray cost when the company needs to assess and adopt the relevant standards for business growth.
The EDG is available to all Singapore companies that fulfil the criteria. If you have any queries with regards to EDG, you may contact us at [email protected]. We do assist clients in the application process.
Here is a casual video explaining the process:
Here is a video about Enterprise Development Grant:
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
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