Singapore companies are often put in the position to contract loans in order to be able to operate, however the government through International Enterprise Singapore and SPRING Singapore, two of the mechanisms enabled to assist businesses has conceived the Loan Insurance Scheme (LIS). The assistance program helps local companies borrowing money from banks by insuring the insolvency risks of these companies. If you want to open a company in Singapore and need information on the process you can rely on our company registration agents in the city-state.
To be more specific, the LIS program was designed to make sure Singapore companies contracting short-term credits from banks are covered in case they are in danger of bankruptcy. IE Singapore and SPRING Singapore will partially support the insurance premium issued together with the loan.
The program is completed by the Loan Insurance Scheme Plus (LIS+) where the government is the main underwriter of the loans taken by Singapore companies. Also, the loans cannot be insured by commercial insurance companies.
Our Singapore company formation consultants can assist foreign investors interested in setting up a business in the insurance sector.
In order to tap into the Loan Insurance Scheme, Singapore companies selling their services or good outside the country must fulfill the following criteria:
Companies selling their goods and services in Singapore must have a yearly turnover of at least 100,000 million SGD, a maximum number of 200 employees and at least 30% shareholding in the company must be local. Our experts in company formation in Singapore can give you more information about this matter.
The loans which can be underwritten under the LIS and LIS+ must be related to the following activities:
Enterprisers interested in doing business in the city-state can obtain information on the best performing industries from our Singapore company formation agents. You can also contact us for assistance in registering a company in Singapore.