subject: Singapore Subsidiary Company And Its Advantages [print this page] Singapore is a country where opportunities are readily available for an entrepreneur or a business owner would like to grow or expand his business. Being part of the few elite countries celebrated as one of the most best developed countries not only in Asia but throughout the entire planet. Singapore continues to be the top pick as their headquarters or expansion of operations for businessmen and corporations wishing to expand their business venture. This is mainly because of Singapores impeccable work ethic both as a people and the country as a whole. This is clearly reflected on Singapores strong economy and currency.
For foreign and local businessman who wish to incorporate a Singapore company, here is a detailed article explaining what is a Singapore subsidiary company and some of its benefits.
A Singapore Subsidiary Company actually is an incorporated private limited company, in which the majority of shares are held by a corporation, foreign or local.
A foreign company who wish to set up a business in Singapore can register a branch or incorporate a Singapore subsidiary company. A Subsidiary Company in Singapore is considered as a resident company and actually provides a lot of advantages.
Below 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 distinct 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 companys 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 countrys double-digit economic growth, world-class infrastructure, immigration policies to attract more foreign businessmen and investors, and clean governance.
