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Company Registration Singapore
Company Registration Singapore

Why Indian Startups Choose Singapore for Incorportation

The laws of India and Singapore allow Indian citizens to easily incorporate businesses in Singapore. But what are the benefits for an Indian business owner? This guide helps answer that question. It describes business scenarios where a Singapore-based company structure can be useful for Indian entrepreneurs and businesses.

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    Registration Process

    Сompany Registration

    StartEase takes care of the entire company registration procedure to guarantee that your company complies with all ACRA regulations right away. We represent your business in legal matters. That means instead of you, we communicate with the Accounting and Corporate Regulatory Authority (ACRA) directly.

    We’ll register your company online

    • Ltd registration
    • Bank account opening
    • All documents

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    Register a Company Name

    Here’s How to Register a Company Name

    Examine the name's availability

    Verify that the desired name is available. You can verify the availability of a company name using the StartEase service or through ACRA's online business filing portal, Bizfile+.

    Get your company name approved

    The next step to registering a company in Singapore is to reserve your company name via ACRA's online business filing portal, Bizfile+.

    Prepare your documents

    Make sure your name has the correct identification at the end. Will your business, for instance, be a limited or public limited company? Ask us if you need further information.

    Submit application to ACRA and pay the fee

    Once your incorporation application has been approved, BizFile+ will email the appointed officers (e.g. directors, shareholders and company secretary).

    Maintain your company documents and filings

    Check your company registration document and bank details to ensure your company is fully compliant with the government.

    Beyond registration processes

    Start to look for sources to get funding, save on taxes, and understand the responsibilities after setting up your company.

    What do you get when you register a company?

    The Company Constitution is a legal document encompassing the Memorandum of Association and the Articles of Association..
    This is official proof of company registration in Singapore. The Certificate of Incorporation contains your company’s Unique Entity Number (UEN) and details of your company’s corporate structure.
    Your BizProfile is used to confirm all of your company's information. Your BizProfile is a part of the StartEase company registration package. Use the BizFile interface on the ACRA website to submit a direct application for a business profile.
    A business bank account lets you receive and pay money in your company's name.

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    Singapore-India Relations

    Principal Benefits of Incorporating in Singapore as Opposed to India

    Singapore and India are significant trading partners, and their commercial ties are growing. India's economic and commercial ties with Singapore have grown dramatically over the past few decades, making Singapore one of India's top trade and investment partners in the ASEAN area.

    Both countries may trace their social customs and beliefs to the South Asian Indo-Chinese cultural heritage, yet after gaining independence, they have taken very different paths. Singapore's determination to participate in the global market has been unwavering, in contrast to India, which has pursued a democratic but somewhat meandering road from a tightly controlled communist economy to a market-based one.

    The business climates of the two nations are extremely dissimilar, and each has chosen a different strategy for controlling its economy. While India continues to practice a complex, heavy-handed "licensing raj," Singapore advocates a light-touch, compliance-based regulatory regime.

    Singapore has established itself as a significant financial and investment hub for many Indian enterprises because of its business-friendly environment, infrastructure, connectivity, and presence of a sizable Indian community.

    Low rate of corporate tax
    Low rate of corporate tax

    Singapore has a corporation tax rate of less than 17%, compared to India's 30% for domestic businesses.

    Absence of capital gains tax
    Absence of capital gains tax

    India's capital gains tax rate is between 15% and 20%. Capital gains are not taxed in Singapore.

    Fixed GST
    Fixed GST

    India's value-added tax (also known as the goods and services tax, or GST) ranges from 5% to 28%. It's set at 7% in Singapore. Even some commodities are excluded from paying taxes.

    Having no dividend tax
    Having no dividend tax

    Dividend payments made from a company's post-tax profits are taxed in India. Singapore, meanwhile, does not impose two taxes. A shareholder's dividend is not taxed either.

    Government assistance
    Government assistance

    Companies in India can readily access no significant tax advantages or other benefits, whereas Singapore provides various benefits to its startups.

    A vast array of tax treaties
    A vast array of tax treaties

    Due to Singapore's broad network of tax treaties, businesses that do business internationally can avoid paying two taxes.

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    Starting a business

    Indian Business Scenarios

    Through a comparatively easy and affordable process, businesses with headquarters in India can incorporate in Singapore. Due to Singapore's 100% foreign ownership policy, an Indian national or an Indian-based business can own 100% of a Singapore corporation. Exploring some of the major situations when incorporating in Singapore can considerably benefit an Indian business by reading on.

    Although it may sound unusual to suggest starting an Indian company in Singapore, some of the most well-known Indian businesses are incorporated there

    A Singapore corporation can help you with your ambitions if you run a successful business in India and want to grow it internationally organically or through acquisitions.
    By forming a Singaporean company, an Indian company that sells goods or offers services to customers abroad can cut down on the administrative burden of running its business. The Indian company's goods or services are distributed through the Singaporean business.
    Because Singapore is closer to India, better for business, offers a better quality of life and opportunities for children than many other western nations, welcomes established Indian entrepreneurs with open arms through its Entrepreneur Pass and Employment Pass programs, and is a great place to retire, many established Indian entrepreneurs find it very attractive to relocate there.
    By recruiting through their Singapore subsidiary, an Indian company hiring senior-level overseas executives can increase the after-tax take-home pay and benefits package. After that, the executive is deputised for the Indian operation and can function there. Such internal secondment is a highly successful recruitment and retention tactic for top-tier foreign talent.
    If the target foreign currency swings against the India Rupee negatively, Indian enterprises that must receive or make payments in that currency suffer a severe currency risk. Because of its extreme volatility, it can be hedged using futures or options, but such are sometimes quite pricey. Holding the company's assets in a stable currency, such as the USD, EUR, or SGD, is an alternative strategy. To do this, a Singapore subsidiary can be established, which will enable it to keep the company's assets in the preferred stable currency. Singapore is a great jurisdiction for handling these risks because it has one of the greatest foreign exchange markets.
    A relatively typical corporate structure is a holding company established in Singapore. Numerous sizable firms use it (e.g. Flextronics, Wilmar, Trafigura, Temasek, and CapitaLand). It's a fantastic alternative, in particular for Indian subsidiaries.
    Consider Singapore a location for your family office if you are an Indian family with considerable assets that you are worried about protecting and safely passing down to the next generation.
    If you have intellectual property (IP) with commercial worth, holding it in a Singapore corporation will maximise its long-term economic value.

    The intellectual property (IP) can be sold or transferred to a Singaporean firm, and the parent company (or its subsidiaries) can purchase a licence to utilise it. The licensees could be based in India or anywhere else. Due to the unique treatment afforded to such corporations in Singapore, licence fees accumulate with the Singapore company at extraordinarily low tax rates. Additionally, no capital gains tax would be imposed on the future sale of the IP asset in Singapore.
    Indian passport holders are restricted from travelling abroad by the severe visa requirements of most nations. However, when most nations consider giving a visa to such a person, holding a Singapore work visa is seen favourably. As a result, the Indian company can establish a subsidiary in Singapore and secure business people's work visas. They would be able to travel globally with fewer restrictions and work in Singapore thanks to the work visa.
    If you're thinking about investing in a firm with an Indian base, you might want to think about doing it through a Singapore-based corporation. This is unquestionably the best course of action if you are an investor or individual who is not Indian. However, it can make sense to make such an investment through a Singapore-based business, even for Indian individuals or for Indian-based investment firms.
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    Registration Process

    Сompany Registration

    StartEase takes care of the entire company registration procedure to guarantee that your company complies with all ACRA regulations right away. We represent your business in legal matters. That means instead of you, we communicate with the Accounting and Corporate Regulatory Authority (ACRA) directly.

    We’ll register your company online

    • Ltd registration
    • Bank account opening
    • All documents

    68

    World Class Companies

    29k

    Worldwide Customers
    Contact

    FREE Consultation

      Book Meeting

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