Indian Entrepreneurs Should Think of Company Incorporation in Singapore

Indian Entrepreneurs Should Think of Company Incorporation in Singapore

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  1. Are you an Indian entrepreneur thinking of incorporating a company in a foreign country? Have you ever thought about the company incorporation in Singapore? If you have, do not hesitate. You should go ahead and capitalize on the opportunity of doing business in one of the richest economies in the world.

    In 2004, the bilateral trade between India and Singapore was hovering around $4.2 billion dollars. Both the countries decided to give it a boost by signing the Comprehensive Economic Cooperation Agreement (CECA) in June 2005. In 2011-12, the bilateral trade has grown to $25.5 billion. Today, Singapore has emerged as one of the largest trading partner of India.

    Opportunities in Singapore for Indian Entrepreneurs

    In Singapore, there is a huge demand for the financial services, computer/software sectors, construction, and marine sector. The bilateral trade involves products like jewelry, diamonds, mineral oil, petroleum products, transport equipment, non-ferrous metals, electrical and electronic equipment, and rice.

    Any Indian businessperson or a firm that is capable providing any of these products or services has a lot to gain by a new Singapore business incorporation. Singapore is known for its lower tax rates, ease of doing business, infrastructure, and corruption free society. It has all the ingredients that make a businessperson grow and prosper.

    Singapore Business Environment

    Singapore government is always willing to support startup businesses. It is a great help to the entrepreneurs that are willing to setup a company in Singapore. The authorities also offer a number of tax rebates, incentives, and exemption schemes to assist the Singapore businesses in reducing their costs.

    The process of company incorporation in Singapore is much easier than that in India. A Singapore private limited company is a dynamic and scalable business vessel for the foreigners to use. It limits the liability of its owners (shareholders) to the amount they have invested in the purchase of the shares.

    An Indian entrepreneur can incorporate a private limited company and can also, own 100% of its shares. There are Singapore firms which assist the foreigners in incorporation of company in singapore.

    Singapore Tax exemptions, Rebates, and Benefits

    There is a special tax exemption scheme for the startup companies registered in Singapore. Under this scheme, for the first three years, the initial chargeable income of up to S$100,000 of a startup business is tax-free.

    Their chargeable income between S$100,000 – S$300,000 is taxed at 8.5% and that above S$300,000 is charged at 17%. However, the effective corporate income tax paid by the Singapore registered companies comes to about 11% – 13%.

    Singapore has signed more than 70 Double Taxation Avoidance Treaties with the other countries. This eases the tax burden on the companies that are involved in cross-border trade. They do not have to pay taxes twice on a single trade.

    In case, they have to pay tax on their income in a country having no double taxation avoidance treaties with Singapore, they can claim credits. Singapore also allows tax benefits to the existing Singapore registered companies through its partial exemption scheme.

    For the Indian entrepreneurs, Setup company in Singapore is an incredible opportunity. It is not like, going to some obscure place. Almost 10% of the residents of Singapore are of Indian origin. In addition, 350,000 Indian expatriates and 150,000 Indian migrant workers live in Singapore. The Indian languages like Tamil, Hindi, Gujarati, Urdu, Bengali, and Punjabi are used in Singapore.

    Singapore is also well-known for skilled, motivated workforce. Overall, a hardworking Indian entrepreneur who wants to open a company in Singapore will find it easy to operate in Singapore.

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