Why do so many Indian Startups register in Singapore?

👉🏼 Tax Saving for VC Investors

The capital gains tax in India is 15-20%, and in Singapore, is zero!

As most VCs, create their returns by selling shares in companies, it’s the capital gains they get taxed on and not business profits or dividends.

👉🏼 Tax Savings on Profitable Companies

The Income Tax rate on Indian companies is 25-30%, but in Singapore is ~17% only

👉🏼 Political Risk, IP Laws and Arbitration

Singapore is in the top 5 countries in the world in the ease of business rankings, and is the most politically stable government which always takes a neutral stand in international affairs

The Intellectual Property protection laws in Singapore are highly robust compared to India, as are arbitration laws.

👉🏼 Raising Capital from China

If you raise money from Chinese investors, you have yo go for a special approval from the RBI in India. There’s no such requirement in Singapore

👉🏼 Ecosystem and SE Asia HO

👉🏼 Despite all of the above, why must you register in India instead

- While SG has lower taxes on the face of it, if your primary business is in India, the Indian tax laws will force your investors to pay taxes in India even though they are foreign parties who have bought and sold shares of a Singapore entity

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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.

Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.

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