Are you thinking of launching a start-up? But confused about where to et it up? If you are looking for suggestions outside India, then Singapore is the best option for you.
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.
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.
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.
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.
Whereas the start-up would have to pay 30% tax on their incomes if they are located in India.
Not having the right team is one of the key reasons why a start-up with a good idea fails. The level of talent available in Singapore is directly proportional to how skilled the employees of a start-up company can be. INSEAD has ranked Singapore 2nd on their Global Talent Competitiveness Index.
In India, the lack of a skilled workforce has brought down competitiveness and businesses have difficulty finding skilled enough employees to drive the company forward.
Singapore is a microcosm of the world and therefore serves as an effective testing location for start-ups to test launch and work on the improvising of their products and services. It is also a very tech-savvy and network ready nation.
Singapore meets and exceeds the needs of any start-up and as long as the current performance gap between India and Singapore exists, it is very likely that more Indian start-ups will continue heading to Singapore to set up companies.