What would be their primary destination of choice, and what are the major factors preventing them from moving?
Factors Preventing - Nobody in my circle has this setup, making me worried about unknown challenges - Double Taxation issue. I am not clear what will be taxation liability, I have talked to multiple CAs and they all say multiple things - Transfer of IP - We are a product company and one of the CAs warned us that if we move IP of the product to the Singapore entity, it gets tricky to explain as IP was built with an Indian entity. Very gray area about this
The incentives being ease of international transactions, capital / debt availability, simpler tax policies.
We need to file taxes in India for operations done in India, yeah so that actually means that we are increasing the overhead of compliance (adding Singapore compliance). Benefits are better funding opportunities, lesser taxation and financial tools to work for your startup.
I've seen a few companies register in USA, Singapore and Ireland. Primary destination would obviously vary based on the founder preferences, nature of the business, location of customers, etc.
I think the major factors preventing them from moving would be lack of knowledge / fear of the unknown, residing in India with profits accumulating abroad and immigration uncertainties.