A very little change in ease of doing business at ground level is evident when startup choose to change their base to a country with much more friendly business ecosystem. Recently, Groofers have changed their base to Singapore citing listing benefits. The blue eyed boy of e-commerce also had shifted to Singapore long back. Practo, Mobikon and Adnear have followed the same route. Freshdesk and Druva felt US would be a better base.
Three top reasons for exodus
Compliance difficulties: Indian company laws are rigid and a small start up has to sweat it out to match them as there are no specific concessions to them.
High corporate tax: India has a whooping 30% corporate tax while in comparision Singapore has 17%.
Investment or income: Venture investments are sometimes considered as income and taxes are levied or you need to deal with the authorities to sort it out and you all know how much you need to sweat it out on that.