If you are thinking about starting a new business, your first concern would be how and where you should register your company. Company registration is very important to keep your business safe. Every country has different registration procedures. You can register your company in any country even if you are not a resident of that country. In order to figure out whether you should incorporate your company in India or Singapore, you must understand the procedure that is followed in both countries. The political environment also plays an important role in this decision.
First let’s talk about Singapore. In Singapore, taxes are quite low. Personal tax is levied on an individual up to 22% whereas corporate tax ranges from 0-17%. Singapore is best for global businesses that include import and export. It has the world’s second-busiest port. Singapore also has an open immigration policy which is great for foreigners. The registration process is easy and hassle-free. It can be done within an hour if the documents are ready beforehand. At most, it takes no more than a few days. The educated and hardworking workforce is available. It is even possible to incorporate a 100% tax-exempted offshore company.
Now talk about registering a company in India. The tax is high as compared to Singapore. Tax levied upon a domestic company is 31% and increases to much higher once the annual revenue exceeds a fixed limit of $161,000. The registration process is tiresome. It would take around 8 weeks due to lots of documentation work and government approvals that are required. For some of the paperwork, you are required to submit applications like Digital Signature Certificate.
As far as the working environment the story is also different. For example, making a foreign currency payment needs the approval of banks in India which can take days, whereas in Singapore no such approval is required.
In general, incorporating your company in Singapore makes sense. For registering a company in India the only benefit will be if your entire client base is in India.
New Company Setup
New Company Setup
New Branch Setup
Singapore Bank Account