Benefits Of A Singapore Subsidiary Company

Singapore is one of the best developed countries in the world

. For most entrepreneurs or companies thinking of forming or relocating a business, Singapore continues to be the favored pick as their central office or expansion of operations. This is primarily because of Singapore's sound infrastructure and highly efficient work ethic. This is clearly demonstrated on Singapore's strong economy and currency.

For foreign and local businessman who wish to form a Singapore company, here is a detailed article explaining what is a Singapore subsidiary company and some of its advantages.

A Singapore Subsidiary Company is essentially an incorporated private limited company, in which the majority of shares are held by a corporation, foreign or local.

A foreign company wishing to form a business in Singapore can register a branch or incorporate a Singapore subsidiary company. A Subsidiary Company in Singapore is considered a resident company and actually provides a lot of advantages.

Here are the benefits of a Singapore Subsidiary Company:

It is incorporated as a limited liability company, hence it has a distinct legal identity. Since it is a separate legal entity, the personal assets of the owners or shareholders are separated from the company assets. Thus creating a fall back is put in place between the company and its owners or shareholders.

The foreign company's liability is limited to the value of the shares it subscribes into the subsidiary.

The foreign parent company may own 100% of the subsidiary.

A subsidiary company, with at least one individual shareholder with minimum of 10 percent shareholding, is entitled to local tax incentives. New start-up companies Pay Zero tax on the first S$100,000 of chargeable income for the first three consecutive years. A further 50% exemption is given on the next S$200,000 of the chargeable income.

Economically speaking, registering a Singapore Subsidiary company provides more advantages more that the above mentioned due to the country's double-digit economic growth, world-class infrastructure, immigration policies to attract more foreign businessmen and investors, and clean governance.

by: John Media

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