5 Reasons Why Indian Startups Are Getting Themselves Registered In Singapore

If you are planning to setting up a startup, you must probably be thinking where to register it. If you want to register your startup outside India, then Singapore is the best location for you. Although, India’s start-up ecosystem is world’s third highest after the United States and China, Singapore provides more favourable conditions for new ideas to flourish.

According to a study, the number of Indian-origin start-ups in Singapore has gone up from 1,100 to 4,000 between 2000 and 2012. These companies have the right reasons to station their offices in Singapore and some of them are given below.

1. Easy to register

Startup owners in Singapore find it easier to register their company as compared to India. As per Doing Business Report by the World Bank Group, registering a startup in Singapore takes up an average of 2.5 days and has around 3 steps, while in India it takes more than a month and has an average of 13 steps for the incorporation process. Therefore, startup owners find lesser hassles in Singapore as compared to their own country.

2. Better infrastructure and lower corruption

According to the Global Competitiveness Report by the World Economic Forum, Singapore is ranked at second spot out of 144 countries for the ease of establishing new business. You will be surprised to know where India ranks; it is at number 60. The Singaporean government supports new ideas and innovation. India is a growing Asian economy, but it still lacks the suitable infrastructure and system to foster new ideas and businesses. Plus, the exorbitant levels of corruption in the country make it harder for business owners to start their companies in India.

3. Startup-friendly tax scheme

The tax scheme in Singapore acts like a magnet for startups. The chargeable incomes are taxed at a flat rate of 17%. The country even offers start-up tax exemptions (SUTE) for newly-established companies for the first three years of their assessment on the first $100,000 of chargeable income. After this, they are charged only 8.5% on the next $200,000 chargeable income.

In India, the startups would have to pay around 30% tax on their incomes!

4. Skilled workforce

Singapore has talent flowing up to its brim. Thus, the startups registered there wouldn’t have to struggle for a talented team. According to INSEAD, Singapore is ranked at second spot on their Global Talent Competitiveness Index. In India, lack of skilled labour also encourages many startup owners to register their companies elsewhere. Sometimes, lack of good labour also is the reason behind why a good startup fails.

5. Effective testing location for start-ups

Singapore is a highly-advanced country and therefore, it acts as an effective testing ground for new products and services. It also helps the startup owners to improvise on their ideas. Singapore is also a tech-savvy and network-ready nation.

Going by these above-mentioned benefits, it is highly likely that many Indian startups will continue to move to Singapore for their company registration. It is causing the unnecessary drain of talent from our country and requires immediate measures to provide the favourable conditions to them in their own homeland.