Last week, one of my e-Commerce Clients in the B2C segment asked me this question: “Where can I register my company, other than in India? Is Singapore a good option?”

This is a common question every Indian startup Entrepreneur explores, keeping in the mind the FDI and taxation policies that Indian government has. So, let’s take a close look at why you should consider Singapore as your destination while exploring foreign company registration

FDI Policy

The Government of India recently introduced Foreign Direct Investment (FDI) policy did not permit FDI in the multi-branded retail (B2C segment). As such, foreign venture capitalists have restrictions while funding an Indian online retail operation.

Take the example of Flipkart, India’s largest e-commerce private company. When the Indian Government turned down the proposal for allowing FDI in the retail sector, investors of Flipkart were left with 2 options: (i) sell the company at the best price or (ii) sell the risky part of the business (logistics and delivery) and move the profitable part to a country with more relaxed regulations. It’s very obvious for the Bansals (Sachin Bansal and Binny Bansal, the Co-founders of Flipkart) to agree to the second option; they registered their company in Singapore. Flipkart’s investors now can infuse the capital in the parent company, and can direct the funds to its India arm

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