Introduction
In the ever-evolving landscape of business, small businesses in Singapore constantly seek opportunities to expand beyond their local market and tap into the vast potential of international markets. However, the journey of global expansion can be financially challenging, especially for small and medium-sized enterprises (SMEs). To support and empower Singaporean businesses in their internationalization efforts, the Market Readiness Assistance (MRA) grant provides valuable government support for local businesses with up to S$100,000 grant for each new overseas market.
Understanding the Market Readiness Assistance (MRA) Grant
The Market Readiness Assistance (MRA) grant is a comprehensive assistance program administered by Enterprise Singapore. Its primary objective is to equip Singaporean businesses with the necessary resources and tools to venture successfully into new markets abroad. The MRA grant encompasses various forms of support, including financial assistance, capability development, and market knowledge, making it an invaluable asset for SMEs with global ambitions.
Eligibility Criteria for the MRA Grant
To access the benefits of the MRA grant, SMEs must meet specific eligibility criteria:
Eligibility
Business entity registered and operating in Singapore
Company has at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
New to target overseas market
The company’s annual sales in the target market must not have exceeded S$100,000 in any of the preceding three years
Company has a Group Annual Sales Turnover not exceeding S$100 million OR a Group employment size not exceeding 200 employees
Note: Employers eligible for the SkillsFuture Enterprise Credit can qualify for additional subsidies under the scheme.
Common Activities Covered by the MRA Grant
The MRA grant extends support to Singaporean SMEs for various common activities associated with international expansion. Some of these activities include:
1. Incorporation Cost of Setting Up a Business in the New Market
The MRA grant provides financial assistance to SMEs for the incorporation costs incurred while establishing a business presence in the target foreign market. This support eases the financial burden on businesses as they navigate the complexities of international business setup.
2. Intellectual Property (IP) Search and Application
Expanding into new markets may expose SMEs to intellectual property risks. The MRA grant offers support for conducting IP searches and the application process, safeguarding the company's intellectual property rights in foreign territories.
3. Import and Export Licenses
Navigating import and export regulations in foreign markets can be challenging. With the MRA grant, SMEs can claim assistance for obtaining the necessary import and export licenses, ensuring smooth cross-border operations.
4. Drafting of Franchising, Licensing Agency, Distributorship, and Joint Venture Agreements
The MRA grant supports SMEs in drafting essential agreements for business expansion, such as franchising, licensing agency, distributorship, and joint venture agreements. This ensures that the terms and conditions of partnerships are clearly defined and mutually beneficial.
5. Salary of 1 Permanent Business Development Staff
To bolster their internationalization efforts, SMEs can claim support for 1 year salary of one permanent business development staff. This allows businesses to have dedicated personnel focused on driving their global expansion strategy.
6. Rental of Office
Setting up a physical office in the new market is crucial for establishing a strong business presence. Under the MRA grant, SMEs is eligible to claim up to 1 year office rental expenses, reducing the financial strain of setting up in a foreign location.
Application Process
The application process for the Market Readiness Assistance (MRA) grant involves the following steps:
Registration: SMEs must register on the Enterprise Singapore website to access the MRA grant application form.
Submission of Proposal: Companies need to submit a detailed proposal outlining their internationalization plans, including the common activities they seek support for under the MRA grant.
Evaluation: Enterprise Singapore evaluates each proposal based on eligibility criteria and the potential impact of the proposed overseas venture.
Approval and Disbursement: If the proposal meets the necessary requirements, the MRA grant will be approved, and the company can proceed with its overseas expansion plans, availing support for the specified common activities.
Conclusion
The Market Readiness Assistance (MRA) grant stands as a vital catalyst for Singaporean SMEs aspiring to expand their businesses to global horizons. By offering support for various common activities, such as business setup, IP protection, and agreement drafting, the MRA grant paves the way for successful internationalization. If you are a visionary Singaporean business owner with ambitions of exploring new markets and seizing global opportunities, don't miss out on the incredible support offered by the MRA grant. Reach out to us today to discover how you can leverage this valuable resource and take your business to new heights on the international stage. Unlock the potential of international markets and embark on a journey of growth and prosperity with the Market Readiness Assistance (MRA) grant. Don't hesitate to contact us to begin the application process and turn your global dreams into reality.