Benefits of incorporating a Company in the USA:
1. Every state in the US is governed by its state laws and regulations which vastly differ from one another.
2. Delaware, Wyoming, and Nevada, in particular, provide the most complimenting business and taxation laws which makes it mainstream for companies to incorporate.
Benefits of incorporating a Company in India:
1. MSME BENEFITS
The Indian government has always been in favor of providing benefits to Micro, small and medium enterprises (MSMEs). There are many advantages of obtaining MSME registration in India which are as follows:
- Bank Loans (Collateral Free)– The Government of India has made collateral-free credit available to all small and micro-business sectors.
- Subsidy on Patent Registration- A hefty 50% subsidy is given to the Enterprise that has the certificate of registration granted by MSME. This subsidy can be availed for patent registration by giving applications to the respective ministry.
- Overdraft Interest Rate Exemption- Businesses or enterprises registered under MSME can avail a benefit of 1% on the Overdraft as mentioned in a scheme that differs from bank to bank.
- Industrial Promotion Subsidy Eligibility- Enterprises registered under MSME are also eligible for a subsidy for Industrial Promotion as suggested by the Government.
- Protection against Payments (Delayed Payments)- At times, the buyers of services or products from the MSMEs or SSIs tend to delay the payment. The Ministry of Micro, Small and Medium Enterprise lend a helping hand to such enterprises by giving them the right to collect interest on the payments that are delayed from the buyer’s side. The settlement of such disputes must be done in minimum time through conciliation and arbitration.
- Fewer Electricity Bills- This concession is available to all the Enterprises that have the MSME Registration Certificate by providing an application to the department of the electricity along with the certificate of registration by MSME.
- ISO Certification Charges Reimbursement- The registered MSME enterprises can claim the reimbursement of the expenses that were spent for the ISO certification.
2. STARTUP INDIA ACTION PLAN
As per the Startup India Action plan, any company being incorporated or registered in India up to 10 years from its date of incorporation after getting registered under startup will get the following benefits:
- Reduction in cost- The government also provides lists of facilitators of patents and trademarks. They will provide high-quality Intellectual Property Right Services including fast examination of patents at lower fees. The government will bear all facilitator fees and the startup will bear only the statutory fees. They will enjoy an 80% reduction in the cost of filing patents.
- Easy access to Funds- A 10,000 crore rupees fund is set up by the government to provide funds to the startups as venture capital. The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.
- Tax holiday for 3 Years- Startups will be exempted from income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).
- Apply for tenders- Startups can apply for government tenders. They are exempted from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.
- R & D facilities- Seven new Research Parks will be set up to provide facilities to startups in the R&D sector
- No time-consuming compliances- Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and 3 environment laws.
- Tax saving for investors- People investing their capital gains in the venture funds setup by the government will get exemption from capital gains. This will help startups to attract more investors.
- Choose your investor- After this plan, the startups will have an option to choose between the VCs, giving them the liberty to choose their investors.
- Easy exit- In case of exit – A startup can close its business within 90 days from the date of application of winding up.
- Meet other entrepreneur- The government has proposed to hold 2 startup fests annually both nationally and internationally to enable the various stakeholders of a startup to meet. This will provide huge networking opportunities.
Startups are being highly encouraged by the government. The benefits enjoyed by them are immense, which is why more people are setting up startups.
3. GST ON EXPORTS
The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services.
4. EASY BORROWING
As Company is going to earn in Dollar and Dollar being strong currency compared to INR, getting external borrowings from banks and financial institutions will be easier.