I come across many startups, especially in technology, incorporating in Singapore or the US. US incorporation is done by many who want to target the US market. Others do it because it is easier to raise funds. However their operations are in India (not just flipkart). With the new budget, how will this change. How does the provision of “effective management” affect all these companies. Here is an article in livemint.
Would be interesting to know the effects. Do we have an international tax guru on TRHS who can tell us the implications.
Raunak Jhunjhunwala
Hi Vivek,
There are numerous reasons for setting up hold co in Singapore some of them are:
1. Tax benefits- Lower tax rate
2. Entrepreneurship visa
3. Hub for Asian head quarters
4. Flexibility of International listing in US Market/London Market
Hope this will give you some direction.