International Taxation
Why business organizations incorporate a company in Singapore?

Why business organizations incorporate a company in Singapore?

Forbes’ Best Countries for Business rankings, Singapore ranks at Rank 9, vis-à-vis India ranks at number 63.

Singapore is considered as world’s second best after New Zealand, when it comes to ease of doing business ranking by World Bank for year 2018. India positions at rank 100.

Singapore is, in fact, is considered the most friendly business environment for promoters. Let’s look at comparative business advantages if one does business in Singapore or India.

Income Tax

At India, the tax highest tax slab is 30% excluding 15% surcharge and other cesses, while at Singapore it is 22%.

Tax on dividend

At India, dividend distribution tax is charged at 15%, while there is no dividend distribution tax at Singapore.

Income tax for companies

At India, a flat rate of 25% plus applicable surcharge is charged for small companies and 30% for plus applicable surcharge on bigger ones. In comparison, Singapore charges 17% corporate tax to companies. As on 20th Sep 2019, India Government made announcements to reduce corporate tax to 22%. The effective tax rate inclusive of surcharges will be 25.17%.

Tax exemption for new companies

While there are stringent conditions to be met at India for claiming any tax advantage in initial years, Singapore gives full tax exemption on the first $ 100,000 chargeable income in first 3 years.


In the times of globalization, zero country borders, instant communication, every business wants to expand its wings across the globe. Singapore does offer a very good environment for your global needs.