What Are the Eligibility Criteria for the MRA Grant?
The Market Readiness Assistance (MRA) Grant is a game-changer for SMEs in Singapore looking to expand their business overseas. It provides the financial support needed to take that crucial step into international markets. But before you get too excited, it’s essential to know if your business qualifies.
Here’s a guide to the eligibility criteria and how you can prepare a winning application.
Introduction to the MRA Grant and Its Significance
The Market Readiness Assistance (MRA) Grant aims to help local companies expand internationally by providing financial support. This grant can cover up to 70% of eligible costs, such as market assessment, market promotion, and business development.
For SMEs aiming to enter new markets, this grant is instrumental in reducing financial risk and accelerating growth.
Eligibility Criteria Breakdown
To qualify for the MRA grant, businesses must meet specific criteria. Here are the primary requirements:
● Company Registration and Incorporation
Your business must be registered and incorporated in Singapore. This ensures that the grant supports local companies and contributes to the local economy.
● At Least 30% Local Shareholding
The SME must have at least 30% local shareholding. This requirement ensures that Singaporeans have a significant stake in the business benefiting from the grant.
● Annual Turnover or Employment Size
Your business should have an annual sales turnover of less than S$100 million or employ fewer than 200 workers. These thresholds are set to ensure the grant targets small and medium-sized enterprises specifically.
● Internationalisation Plans
The company should not have an existing overseas presence but must demonstrate a clear intention to expand into international markets. This criterion ensures the grant funds are used effectively to help companies grow beyond local borders.
● No Pending or Rejected Applications
To be eligible, your company should not have any pending or previously rejected applications for the same project activities under the MRA Grant. This rule aims to distribute resources fairly and efficiently.
Detailed Explanations and Common Questions
● Company Registration and Incorporation
Example: If your business is a sole proprietorship registered in Malaysia, you won’t qualify. Your company must be registered and incorporated within Singapore. Most SMEs fulfill this criterion, but it’s always good to double-check your incorporation documents.
● At Least 30% Local Shareholding
Common Question: Does foreign investment affect my eligibility?
Yes, it does. While foreign investments are welcome, at least 30% of your business’s shares must be owned by Singapore citizens or permanent residents.
● Annual Turnover or Employment Size
Example: If your company has an annual sales turnover of S$120 million but only employs 150 workers, it won’t be eligible. Both the turnover and employment size criteria must be met.
● Internationalisation Plans
Common Question: Can I apply if I already have a small representative office overseas?
No, the grant aims to help companies without any existing overseas presence.
● No Pending or Rejected Applications
Example: If you applied for the MRA Grant last year but were rejected due to incomplete documents, you would need to ensure all criteria are met and reapply afresh.
Tips for Preparing Your Application
● Gather All Necessary Documents
Ensure you have all required documentation, such as incorporation certificates, shareholder details, financial statements, and a clear internationalisation plan.
● Highlight Your Market Research
Detail the market potential and demand for your products or services in the targeted overseas market. This strengthens your application’s justification.
● Demonstrate Clear Objectives
Clearly outline your expansion goals, strategies, and expected outcomes. A well-defined plan showcases your commitment and readiness for internationalisation.
● Seek Professional Help
Consult with business advisors or professional services to ensure your application is thorough and meets all requirements.
● Review and Revise
Before submission, review your application multiple times. Ensure clarity, accuracy, and completeness to avoid any potential rejection.
Conclusion
Securing the MRA Grant in Singapore can be a turning point for your SME, providing the financial boost needed to explore and conquer international markets. Your business can unlock new growth opportunities by meeting the eligibility criteria and preparing a robust application.
Ready to take the leap? Start your application process today and join the ranks of successful SMEs that have expanded their horizons with the MRA Grant. For personalised assistance, book a consultation with experts who can guide you through every step of the application process.
This listicle is designed to provide small business owners and SMEs in Singapore with comprehensive information on the MRA Grant, ensuring they are well-prepared to apply and succeed.
