Singapore Subsidiary Company Advantages
For the past several years, the international community has considered Singapore
as one of the best business centers in the Asia Pacific region with its attractive corporate laws, highly diverse and skilled workforce, appealing immigration policies, and good governance.
Fortunately, forming a Singapore company is convenient for most foreign companies and businessmen who are allowed to adopt any of these three business structures: representative office, branch office, and subsidiary company.
While each of these business models has its own purpose and advantages, most experts believe that a Singapore subsidiary office is the most preferred by foreign companies with its tax benefits and exemptions, limited liability protection, and greater freedom to conduct business activities in the country.
These a 5 advantages of a subsidiary company:
1. Greater business freedom
As long as the nature of business is legal, a subsidiary company is allowed to engage in any business activity even if this is not included in the undertaking of its parent company. With this arrangement, a Singapore subsidiary company can maximize its revenue-generating activities.
Foreign companies have a limited liability
2.Treated as a separate legal entity, a foreign company enjoys limited liability which means that it is not liable for the losses, debts, and liabilities of its subsidiary company.
A subsidiary company allows 100 percent foreign ownership
While a foreign company is allowed to own the 100 percent shares of its subsidiary company, the latter is still eligible for local tax benefits.
(Note: This business model is allowed to have one to 50 shareholders who may be a foreigner or local resident.)
Local tax benefits and exemptions
Being incorporated in Singapore, a subsidiary company can enjoy local tax benefits. And if this is not enough, this business entity may also be eligible for tax exemptions on its first S$100,000 chargeable income and another 50 percent tax exemption from its succeeding S$200,000 if it will meet these following requirements.
The management is exercised in Singapore.
It has at least one shareholder who owns at least 10 percent of a company or it has no more than 20 shareholders with all of them holding their ownership under their names.
Better management structure
A subsidiary company is required to have its management exercised in Singapore which means that its board of directors will enjoy decision-making rights and greater control over their business.
It is important to note that even international businesses need to operate locally in order to be successful.
by: Diane Enriquez
What are the Advantages of a Singapore Subsidiary Company? Microdermabrasion Advantages And Disadvantages The Advantages Of Uninyvin Cables Over Conventional Cables The Advantages Of Cricket Wireless Cricket Wireless And It's Advantages Discover The Disadvantages of Many Water Purifier Systems Today Singapore Subsidiary Company And Its Advantages Crusher Plant Advantages The Advantages of Uninyvin Cables over Conventional Cables The Advantages of Cricket Wireless Ganoderma Extract - What Are The Advantages Of Having Ganoderma Extract Advantages Of A Wall Document Holder The Advantages Of Getting Bamboo Wood Flooring