Why Singapore is a Hub for Indian Startups?

The economies that rank highest in the ease of doing business are those that have consistently well designed business regulation and Singapore is amongst the top 3 countries as per the report of Worldbank.

Several Indian startups, although operating in India, have registered holding companies in Singapore to benefit from increased funding opportunities, business and tax friendly environment, and stable economic policies like Flipkart, Grofers.

In Singapore incorporating a business taking typically One or Two days. The Corporate Income tax rate in Singapore is fixed at 17%, In India it is 25-30% based on the annual turnover of company.

In India selling of Shares by Investors liable to become Capital Gain Tax. In Singapore there is no Capital gain tax on selling of shares. This is one of the reason Investors prefer to invest in Singapore’s company than Indian company.

Singapore Government gives 3 year tax exemptions subject to the limits. In India government is not even ready to abolish Angel Tax.

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