The reason behind registration of Flipkart in Singapore?by Leslie S. Professional Content Writer
The business owners are always on the lookout for better opportunities. Sometimes they start looking for them overseas.
During the last couple of decades, Singapore has come up as the most attractive destination for the investors and entrepreneurs.
Why Flipkart Moved to Singapore?
However, Flipkart did not opt for company incorporation Singapore because of the taxation. It happened because it wanted to raise more capital for its growth and the difficulties it faced.
Its management wanted to raise the capital through IPO. However, in 2007, Indian regulatory agencies were not allowing loss-making companies to go for IPO.
Another option was to raise it through FDI. However, at that time, players in the B2C market in India were not allowed to receive FDI.
On the other hand, Singapore regulators have no objection to the loss-making companies registering on their Stock Exchange.
The splitting of the Flipkart and then, moving on to Singapore allowed it to raise capital for its growth. It is the reason why Flipkart went to Singapore.
There are a number of other Indian companies like Mobikon, Milaap, Idea Device, AdNear, Grofers, etc., which moved to Singapore for various reasons. The country offers them ease of doing business, work-culture that is free of corruption, access to VC ecosystem, and expat talent.
Moreover, company incorporation in Singapore is an easy task. The incorporation process is straightforward. The entrepreneurs only need to complete 3 steps to register their companies.
Also Read: Procedure to register a Company in Singapore: A Comprehensive Registration Guide
Created on Nov 2nd 2020 07:24. Viewed 171 times.