Singapore has become a hub for startups across the world. Well known Indian Startups, including Flipkart, Milaap, Mobikon, InMobi, and Medialink have chosen to incorporate in Singapore. Its reputation as a business-friendly destination with a low tax rate, efficient legal system, and ease of doing business has made it an attractive option for many entrepreneurs. But why do so many Indian startups have their offices registered in Singapore? In this article, we’ll explore the reasons behind this trend.
Ease of Doing Business
Singapore is consistently ranked as one of the easiest countries to do business in. Its efficient legal system and low levels of corruption make it an ideal location for startups looking to expand their operations internationally.
The country’s regulatory environment is transparent, and the government has put in place a range of measures to support entrepreneurship. For example, the government has established various financing schemes such as the Startup SG Equity and the Early Stage Venture Fund, which provide financial support to startups.
Tax Benefits in Singapore
One of the key attractions of Singapore for Indian startups is its low tax rate. The corporate tax rate in this country is just 17%, which is significantly lower than in India. Additionally, Singapore has signed several double taxation avoidance treaties, which means that companies that operate in both countries can avoid paying tax twice on the same income.
This means that Indian startups can take advantage of Singapore’s No unicorns in last 5 months; Cockroach startups to rule in 2023? Funding winter gets cooler, VCs shift focus tax regime to reduce their tax liabilities.
Access to Funding
Singapore is home to many venture capitalists and angel investors who are actively looking to invest in promising startups. In fact, Singapore is one of the leading hubs for venture capital in the Asia-Pacific region.
Singapore’s government has also set up a range of programs to support startups, including grants, subsidies, and tax incentives. These measures make it easier for startups to secure funding and support for their growth.
Singapore a Gateway to Southeast Asia
Singapore is strategically located in Southeast Asia, which is home to a large and rapidly growing consumer market. By registering their offices in Singapore, Indian startups can tap into this market and expand their customer base beyond India’s borders.
Furthermore, Singapore serves as a gateway to other countries in the region such as Indonesia, Malaysia, and Thailand, which provides Indian startups with access to a broader market.
Reputation and Credibility
Finally, registering their offices in Singapore gives Indian startups a reputation and credibility boost. Singapore is known for its strong legal system, efficient bureaucracy, and business-friendly policies. By having a Singaporean office, Indian startups can leverage this reputation and position themselves as serious players in the global startup ecosystem. This is particularly important for startups that are looking to attract investors and partners from other countries.
In conclusion, the decision of Indian startups to register their offices in Singapore is driven by a combination of factors, including the ease of doing business, tax benefits, access to funding, proximity to Southeast Asia, and reputation and credibility.
Singapore’s startup ecosystem offers Indian startups a supportive environment that can help them grow and scale their businesses. By tapping into this ecosystem, Indian startups can expand their reach and take advantage of new opportunities beyond India’s borders.