India is a country full of promises, it is the world’s largest economy; but astonishingly, many start-ups are looking for a business setup in Singapore. Surprisingly, the earlier trend involved start-ups integrating their businesses in Silicon Valley or Hong Kong. What precisely caused this shift? Let’s explore the reasons as to why Singapore has suddenly become every Indian entrepreneur’s go-to destination?
• Infrastructure & Facilities: it has a well-connected route to India which makes it possible to reach this city-state in approximately 6 hours. Singapore is easier to get to than most places in India itself. Additionally, the infrastructure of our country acts as an obstacle in the way of good business. The world is getting digitalized by the second and the internet facilities available in India are less than satisfactory. On the other hand, Singapore boasts of the world fastest broadband services. Moreover, it has a sound logistic transport system, which is an added advantage to the import and export sector.
• Tax structure: Singapore also boasts of one of the most ideal tax regimes for businesses. Where the tax rate of profit is between 30 to 40% in India, in Singapore it makes for less than 20%. Moreover, Singapore does not charge tax on dividends and capital gains. It is also the 5th easiest place to pay taxes. Where India not only charges a high tax but also makes it difficult to pay it, Singapore seems like a lucrative opportunity then.
• FDI regulations and the finest IP regime: Singapore is known for its political stability, which means a business does not run on the whims and fancies of the controlling power. In a world where Intellectual Property is guided with utmost care, Singapore offers investors a sense of assuredness whereas the same cannot be said of India. This liberty accompanied by one of the finest Intellectual Property rights in the world creates a sense of trust and certainty among business owners who find it easier to invest their money in Singapore. Additionally, it is also one of the places with the least corrupt economy. They abide by GAAP, which is observed to be more user-friendly and transparent.
• Ease of doing business: It is no mystery that Singapore has consistently ranked in the number 1 spot as the easiest places to do business for over a decade now. It takes the least amount of time to set up a business in Singapore, which is further simplified by means of using online registration procedures, this means no years of endless paperwork. Another advantage is that along with the registration one can also take care of the tax work at the same time. Whereas, in India, the registration and tax procedure, are two separate procedures. Singapore offers ideal conditions where entrepreneurs can focus on growing their business rather that get tangled in a hazy registration system.
If this wasn’t reason enough, Singapore is influxed with talent which makes recruiting a skilled workforce an effortless experience. Additionally, there are many agencies that support the growth of businesses’ in Singapore; some of them include Economic Development Board, Standards, Productivity and Innovations Board, Accounting and Corporate Regulatory Authority and SMEPortal.