The Modi government, in fact, has made ease of doing business in India a part of its agenda. With recent developments, it will be interesting to see how India will fare against Singapore, and in the global arena, in the coming years
Singapore (PRWEB) February 16, 2015
This report by a Singapore Company Registration Specialist, Rikvin discusses incorporating a business, the procedures required, and timeline to commence business operations in these two countries.
India is an enormous country with vast economic potential. Yet, India’s complex and multi-layered tax structure makes business in India difficult. India has dropped two places down to stand at 142nd out of 189 countries ranked by the World Bank for ease of doing business. In Mumbai, India's business epicenter, showed that it required 13 procedures to start a business, and it took 30 days to accomplish this.
Singapore, on the other hand, stood first overall for the ninth year in succession. The Singaporean government has made the start-up process near perfect, with easy registration and it can be 100% foreigner-owned with a big-draw is the attractive tax regime for young companies. According to the Global Competitiveness Report, Singapore is ranked 2nd out of 144 countries, India is at 60th for fostering new businesses.
Infrastructure, Facilities and Culture
Singapore has world-class infrastructure (3rd), with excellent roads, ports, and air transport facilities. India, on the other hand, continues to struggle with lack of stable infrastructure. It must be noted that the Indian business community continues to cite infrastructure as the single biggest hindrance.
The need to upgrade India’s infrastructure is especially more pronounced in metropolitan cities. Challenges to bridging the infrastructure gap are broad, such as issues in corruption and lack of sustainable investment.
Singapore’s headline corporate tax rate of 17% is half that of India’s 34%, a notably high rate compared to regional averages.
In addition to its attractive headline tax rate, Singapore also offers tax exemptions to start-ups, as a cherry on top. Under this scheme, newly incorporated companies enjoy tax exemption for the first S$200,000, subject to conditions. For taxable profits of more than S$300,000, the 17% tax rate kicks in. In addition, capital gains are not taxable in Singapore.
Types of Business Structures
The report also covers the types of business structures in both Singapore and India. It gives an overview of the two business structures that Singapore does not have, namely the Liaison Office (“LO”) and Project Office (“PO”).
“Singapore has consistently been a veritable test bed for entrepreneurs and the preferred gateway in Asia. India, for its part, has made steps towards improving its overall start-up process. The Modi government, in fact, has made ease of doing business in India a part of its agenda. With recent developments, it will be interesting to see how India will fare against Singapore, and in the global arena, in the coming years,” noted Mr. Satish Bakhda, COO of Rikvin.
Read the complete report here
Established in 1998, Rikvin has partnered with thousands of investors, entrepreneurs and professionals who want to work or do business in Singapore. Rikvin’s areas of expertise include company Singapore company registration, accounting, taxation and other related corporate services. Rikvin is also a licensed employment agency and offers a full spectrum of Singapore work visa services for professionals who wish to relocate to Singapore.
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