Though India’s start-up ecosystem is the world’s third largest after the United States and China, Singapore has caught the most attention of Indian start-ups.
According to a recent study, the number of Indian start-ups in the city-state has grown from 1,100 to 4,000 between 2000 and 2012. That’s huge!
So, let us look at a few reasons why Indian start-ups see Singapore as the preferred location for their operations.
1. Easy Establishment
According to the Doing Business Report by the World Bank Group, the entire registration process for a start-up takes an average of 2.5 days and an average of 3 steps, as against a regional average of slightly more than 34 days and an average of 7 steps for the incorporation procedure.
Whereas in India it takes 30 days and 13 steps to complete for the entire establishment process of a company.
2. Better Infrastructure & Lower Corruption
In the latest Global Competitiveness Report by the World Economic Forum, Singapore ranks 2nd out of 144 countries with regards to fostering new businesses, whereas India stumbles in at 60th. The Government strongly supports innovation spirit, with a vision to build a smart nation to overcome challenges of aging and urban density unfolds opportunities and market for innovative start-ups.
India has a rapidly growing economy, but it lacks in suitable infrastructure and due to its high levels of corruption it isn’t at par with Singapore.
3. Friendly Tax Scheme
Singapore Corporate Tax Rate attracts start-ups. Chargeable incomes are taxed at a flat rate of 17%. Singapore offers start-up tax exemptions (SUTE) for newly developed companies, first, three years of their assessment are fully exempted from tax on the first $100,000 chargeable income and are subjected to only 8.5% on the next S$200,000 chargeable income.