Why are Indian startups ditching overseas hubs for local incorporation? Kunal Bahl reveals 3 game-changing reasons: funding, regulations, and market practicality!
Snapdeal co-founder and Shark Tank India judge Kunal Bahl has called on Indian startups to incorporate their businesses in India rather than opting for foreign jurisdictions like Singapore or the US. In a recent post on X (formerly Twitter), Bahl described the practice of overseas incorporation as “outdated” and emphasized the practical benefits of setting up companies in India.
𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀: 𝗜𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮, 𝗡𝗼𝘁 𝗢𝘃𝗲𝗿𝘀𝗲𝗮𝘀
For years, Indian founders thought incorporating in the US or Singapore made fundraising and exits easier. In 2025, that’s outdated. Today, incorporating in India isn’t just patriotic—it’s…
— Kunal Bahl (@1kunalbahl) March 6, 2025
Why Indian Startups Should Stay Local
Bahl outlined three key reasons why Indian founders should consider local incorporation:
- Access to Funding:
“Nearly all VCs are funding Indian entities,” Bahl stated, dismissing the notion that overseas incorporation provides fundraising advantages. He highlighted that Indian investors now back a wide range of startups, including DeepTech and AI, eliminating the need to seek foreign investors. - Improved Regulatory Environment:
Bahl pointed to India’s startup-friendly policies, such as tax benefits, DPITT incentives, and simplified compliance. He contrasted this with the complexities of US or Singapore structures, which often lead to double taxation issues. - Market Practicality:
“If your customers, revenue, and operations are in India, local incorporation simplifies compliance, contracts, and access to government incentives,” Bahl explained.
A Shift in Startup Trends
Bahl’s comments come amid a growing trend of Indian startups bringing their operations under domestic corporate structures. While Snapdeal itself did not incorporate overseas, it attracted significant foreign investment, including from Singapore’s Temasek Holdings, as revealed in its 2021 IPO filing.
Global Expansion Made Easy
Bahl also addressed concerns about global expansion, stating, “You can easily sell as an Indian company to the world by setting up an overseas subsidiary. Infosys does it, and so can you.”
A Pragmatic Approach
Bahl concluded his post with a powerful message: “Incorporating in India isn’t just patriotic—it’s pragmatic.” His insights reflect a broader shift in the Indian startup ecosystem, where local incorporation is increasingly seen as a strategic advantage rather than a limitation.
As Indian startups continue to thrive, Bahl’s advice could pave the way for more founders to embrace domestic incorporation, leveraging India’s growing investor base and supportive regulatory framework.
