Singapore is one of the most developed countries in the world and the wealthiest nation as well. As per Odint Consulting Y 2021 records, more than 8000+ businesses are registered in Singapore, and hundreds of businesses looking for Singapore company registration services, where Tamil is the official language of Singapore, and every year 1200+ startups register their businesses in Singapore, this country offers so much that we are not aware of.
Singapore as a country is one of the developed countries and when it comes to corporate sectors it offers the lowest tax rates (17%) and flat GST rates (7% – 9%) and a lot’s more, let’s find out why Indian tech giants such as Flipkart and Inmobi have registered head office in Singapore.
Singapore ranks 2nd in ease of doing business ~ Forbes
Why does Flipkart Registered have a registered head office in Singapore?
Flipkart is an online retailer established in the year 2007 with the help of Sachin Bansal as well as Binny Bansal. It is registered in Singapore, This company has greater than 3000 staff members. Flipkart provides E-commerce to its customers. Myntra is a subsidiary of Flipkart. Singapore is the location for many global trading, trading, and logistics businesses because of its central location, great connectivity to shipping, and low-cost trade financing.
Singapore-India tax treaty, the trade pact:
To lessen tax burdens and increase trade flows the two countries are both parties to an agreement known as a Double Taxation Avoidance Agreement (DTAA); India and Singapore have signed the Comprehensive Economic Cooperation Agreement (CECA) in 2005. Singapore is also a party to India’s trade deal with ASEAN.
Modi’s recent visit followed the announcement of another reduction in tariffs, as well as other trade facilitation from Singapore’s Ministry of Trade and Industry.
1. Singapore is a politically and financially very stable Country.
In terms of stability in the political and economic spheres, there won’t be frequent changes to the law, and the economic system of this country is less likely to fail. In terms of economics, Singapore is very strong.
2. Top in Ease of Doing Business
Over the past ten years, Singapore has been named Top 1 in the ease of doing business index. This is due to the businesses being treated with a friendly policy with less bureaucracy and more efficient processes. This is why a lot of startups are licensed in Singapore and are also conducting business in India.
3. Lowest Taxation
In India, the corporate tax rate is 34 percent, whereas in Singapore it’s just 17. In this instance, Flipkart is required to take fewer taxes. Additionally, India pays dividends tax which means that when investors receive dividends, they need to pay taxes on them however in Singapore there is no tax.
4. FDI Regulations
In contrast in comparison to India, FDI Regulations are extremely good in Singapore because of this, which is why Flipkart decides to set up its store in Singapore rather than India.
3. One of the Lowest Corporate & Personal Income Tax Rates in the World
Corporate taxes vary between 0 and 17%. Individual taxpayers living in the state are exempt from tax liabilities that exceed $20,000 per year. The highest personal income tax is 22 percent for individuals making more than $320,000 the year.
4. Stellar Business Regulatory Reputation for Stakeholders, Bankers, Business Partners
Singapore isn’t a tax-free zone. Its strict compliance and solid economic foundations, backed by a stable and stable political system has made sure that Singapore continues to be the best dependable destination for business ventures over the next decade.
5. International Accounting Standards Compatible with the majority of jurisdictions
The Singapore Financial Reporting Standards (SFRS) are based upon the IFRS. Financial statements are made up of accrual and provide an accurate, comprehensive picture of the company’s past present, future, and current financial assets as well as liabilities.
6. Simplified Company Incorporation Process Online
If all the documents you need are in order, you are able to register your business completely online within an hour from anyplace around the globe.
7. Statutory Audit Exemptions for Small Companies
Start-ups with fewer than 20 employees. Individual shareholders or when corporate shareholders own at 10 percent of the issued shares and aren’t holding property or assets, companies are completely exempt from taxation during the first 3 years.
8. No Prior Approval to Setup Singapore Offshore Company by Foreigners
Foreigners can incorporate their company and own 100percent of the parts in Singapore without having to face any significant issues.
The political environment is stable and crime rates are minimal The bureaucracy is thought to be free of corruption, the rule of law is enforced without exception and there is a large number of foreign reserves that keep the currency stable, and a mature global integration is a reality.
Singapore’s offer’s great incentives for foreign companies
- In India, the corporate tax rate for businesses with a turnover of greater than US$36.95 million (Rs 250 billion) is 30 percent, a drop of 4 percent from the year 2011. The corporate tax rate currently in Singapore is significantly lower Singapore, at just 17 percent.
- Employing local talent from Singapore is not a requirement. Singapore’s government Singapore provides half of the salaries of employees from the national workforce. This helps lower the operating expenses for companies that are registered in Singapore.
- Singapore does not have a duty on exports. As opposed to India, import duties are only applicable to petroleum products, tobacco as well as certain luxurious items.
- India taxes capital gains made in the long-term 10% on investments of more than US$1,556.74 (Rs 100,000) However, Singapore does not have a capital gains tax.
- Singapore doesn’t have retroactive taxation, which is an issue for investors who are considering India.
Is Singapore Company Registration is a good choice?
Singapore is growing with an average 3% rate and accepting new business technologies such as Crypto. on the other side, India offers high taxation and lots of legal compliances while accepting new technologies such as crypto and electric mobility.
Singapore-India DTAA also allows India to save lots of taxes. While Tamil is one of the official languages of Singapore and 8000+ businesses are registered in Singapore. India can find lots of benefits while registering a company in Singapore. If you are looking to set up your businesses internationally you can choose Singapore.