Why Indian Start-ups Incorporate A Singapore Company?
Are you wondering, “Can I start an Indian company in Singapore?” The answer is a resounding yes! Many Indian entrepreneurs are increasingly shifting their business operations to Singapore, and for good reason. Setting up a company in Singapore allows Indian founders to retain 100% ownership, access global markets, and operate in a business-friendly environment.
But why choose Singapore over India?
Singapore is renowned for its pro-business policies, transparent governance, and ease of doing business. Unlike India, where businesses often struggle with bureaucratic red tape, cronyism, and regulatory hurdles like the License Raj, Singapore provides a seamless and efficient system for startups to thrive.
In this article, we will walk you through the key advantages, step-by-step process, and essential documents required to incorporate a business in Singapore as an Indian entrepreneur. Let’s dive in!
Why Indian Startups Prefer Incorporating in Singapore?
Here are the top reasons why Indian entrepreneurs are moving their businesses to Singapore:
1. Favorable Tax System
One of the biggest advantages of incorporating a company in Singapore is its low corporate tax rates and tax-friendly environment:
- No Dividend Tax – Unlike India, where dividends are taxed, Singapore does not impose any tax on dividends.
- Lower Corporate Tax Rates – The corporate tax rate in India is 30%, whereas Singapore offers a flat 17% corporate tax.
- No Capital Gains Tax – In India, capital gains tax ranges between 15-20%, but Singapore has no capital gains tax.
- Lower GST (Goods and Services Tax) – In India, GST ranges from 5% to 28%, whereas in Singapore, it is just 8% in 2025 (set to increase to 9% in 2026).
- Double Taxation Avoidance Agreement (DTAA) – The India-Singapore DTAA helps businesses avoid double taxation on income earned in both countries.
2. Ease of Doing Business & Startup-Friendly Regulations
- Singapore consistently ranks among the top countries in the World Bank’s Ease of Doing Business index. Setting up a company is hassle-free and takes only 1-2 days with minimal paperwork.
- No bureaucratic red tape compared to India’s stringent regulatory environment.
- 100% foreign ownership is allowed, meaning Indian entrepreneurs can retain complete control of their businesses.
- Minimal compliance requirements compared to India’s complex tax and regulatory framework.
3. Access to Global Investors & Venture Capital Funding
Singapore is a global financial hub with easy access to venture capitalists, angel investors, and private equity firms. Many investors prefer investing in Indian startups registered in Singapore because:
- They can exit investments easily without paying capital gains tax in India.
- Singapore-based startups attract funding from sovereign wealth funds like GIC (Government of Singapore Investment Corporation).
- Startup incubators and accelerators in Singapore, such as Joyful Frog Digital Incubator (JFDI Asia), Enterprise Singapore, and Startup SG, actively support Indian startups.
4. Strong Legal Framework & IP Protection
Singapore offers world-class legal infrastructure and intellectual property (IP) protection, making it one of the best places to safeguard innovations and patents.
- Strict enforcement of contracts and intellectual property rights.
- No bureaucratic delays in court proceedings, unlike in India.
5. Strategic Location for International Expansion
Singapore serves as the gateway to Southeast Asia and provides easy access to markets like China, Australia, and ASEAN countries.
- Proximity to major global markets makes it easier for Indian startups to expand their operations internationally.
- Advanced digital infrastructure supports fintech, SaaS, e-commerce, and other tech-driven businesses.
How to Incorporate a Singapore Company as an Indian Startup?
1. Basic Requirements for Company Incorporation
To register a Singapore company, Indian entrepreneurs must meet the following requirements:
Requirement | Details |
Company Secretary | Must appoint a company secretary within 6 months of incorporation. |
Local Director | At least one director must be a Singapore Citizen, Permanent Resident, or EntrePass holder. |
Paid-Up Capital | Minimum SGD 1 (No upper limit). |
Registered Office Address | Must have a physical office in Singapore. |
Shareholders | A minimum of 1 and maximum of 50 shareholders are allowed. |
Company Name Approval | Must be registered with the ACRA (Accounting and Corporate Regulatory Authority). |
2. Important Documents for Incorporation
Indian startups must prepare the following documents for company registration in Singapore:
- Proposed company name (approved by ACRA)
- Details of directors, shareholders, and company secretary
- Registered business address in Singapore
- Memorandum & Articles of Association (Company Constitution)
- For foreign entrepreneurs:
- Passport copy
- Proof of residential address (overseas)
- For foreign companies setting up a subsidiary:
- Certificate of incorporation
- Company constitution
3. Registering with ACRA (Singapore’s Corporate Authority)
- The Accounting and Corporate Regulatory Authority (ACRA) manages all company registrations in Singapore.
- Foreign entrepreneurs cannot register a Singapore company on their own and must hire a registered filing agent.
- The entire registration process can be completed online within 1-2 days.
Conclusion
Singapore offers tax efficiency, a business-friendly environment, investor access, and global market connectivity, making it the top choice for Indian startups looking to expand internationally.
By incorporating a Singapore company, Indian entrepreneurs can reduce tax burdens, attract global investors, and scale their businesses faster in a stable and pro-business economy.
Thinking of incorporating your startup in Singapore? Contact our business registration expert today to streamline the process!
FAQ’s
One of the world’s most straightforward and sensible tax systems is found in Singapore. It does not impose taxes on capital gains or corporate dividends.
The capital tax rates and GST are sky-high in India, whereas in Singapore, there is no capital tax, and the GST percentage is just 8%. Plus, the work environment in Singapore is a lot better than what you will get in India.
By fulfilling the set requirements for an Indian business establishment in Singapore and by gathering all the necessary documents, you can easily move your business to Singapore.
If you have a firm in Singapore and have an Indian owner, you can resell your services or goods and make use of the India-Singapore trade treaties to carry forward the goods and finances exchange between the 2 nations.
