Given the unfavourable regulations in India that restrict early-stage investing, merger and acquisition (“M&A”) transactions and initial public offerings (“IPOs”), it is no wonder that many India’s start-ups in need of funding have gone elsewhere, such as Singapore, where funding is far more accessible.
Why locate your start-up in Singapore?
Why choose Singapore for business? The reasons why many Indian start-ups first look towards Singapore as a base for their business are mostly practical ones. In a world that has rapidly modernised, Singapore’s government has done well in revamping and developing its infrastructure and facilities to meet the demands of a rapidly evolving economy, leading to its no. 1 ranking in the World Bank’s annual survey on the Ease of Doing Business.
In contrast however, India has struggled to balance traditional ways of life whilst attempting to keep itself globally competitive, leading it to the unique challenge of dealing with a complex and haphazard city infrastructure, with native wildlife seemingly uncooperative in its bid to modernise.
Moreover, Singapore is also one of the most business friendly countries in the world, with a large number of tax incentives, easily understood ongoing compliance requirements; and its strong diplomatic policy has established approximately 74 Double Taxation Agreements (“DTAs”), 41 Investment Guarantee Agreements (“IGAs”) and 21 Free Trade Agreements (“FTAs”) / Economic Partnership Agreements (“EPAs”) that companies in Singapore can leverage off to expand their market reach.
A key factor that is also extremely attractive to new age entrepreneurs is Singapore’s strong respect for the rule of law and its developed intellectual property (“IP”) protection laws; which is crucial for tech start-ups and various other industries that need to protect their trade secrets. Indeed, the strong framework set in place for IP protection has been a key reason why leading multi-national corporations (“MNCs”) such as Proctor and Gamble, Mead Johnson, Fraser and Neave have selected Singapore as their destination of choice for research & development.
Particularly for tech entrepreneurs who do not have the funds to spend on engaging expensive legal counsel to draft and apply for patents, etc; but consider protection of their IP as an essential and core component of their business, Singapore’s reputation as a strong protector of IP is a strong reason to locate their business here.
Read more on why Indian Startups expand to Singapore at Singapore Company Incorporation website.
