Singapore Subsidiary Company Information

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					Most business registration specialists in Singapore believe that a subsidiary company
is the most ideal setup for foreign companies planning to operate in the country as it
provides countless of advantages especially in terms of taxes.
  Essentially, a subsidiary company is a private limited company with a foreign
corporate entity as its major shareholder instead of a local business organization. But
still, this business structure is considered as a local tax resident since it is incorporated
in the country.
  Being a tax resMost business registration specialists in Singapore believe that a
subsidiary company is the most ideal setup for foreign companies planning to operate
in the country as it provides countless of advantages especially in terms of taxes.
  Essentially, a subsidiary company is a private limited company with a foreign
corporate entity as its major shareholder instead of a local business organization. But
still, this business structure is considered as a local tax resident since it is incorporated
in the country.
  Being a tax resident, a subsidiary company 鈥攅 ven if 100 percent owned by a
foreign business entity 鈥攊 s eligible for all the local tax benefits and exemptions.
  (Note: While a subsidiary can be owned 100 percent by its foreign parent company,
it can have up to 50 shareholders who may be a local resident or foreigner.)
  Within three years of its incorporation, a subsidiary company enjoys 鈥淶 ero Tax
鈥?on its first S$100,000 chargeable income and another 50 percent tax break on its
succeeding S$200,000. But to qualify for these tax exemptions, this company should
have one individual shareholder who owns a minimum of 10 percent shareholding and
should practice its management and control in Singapore.
  While the Singapore government has not explicitly defined 鈥渕 anagement and
control,鈥?most experts believe that it pertains to the level of authority enjoyed by
board of directors rather than the day-to-day operation of a company.
  Legally speaking, a subsidiary is a separate entity from its main headquarter, and as
a result, the latter is not liable for the financial losses, debts, acts, and lawsuits of its
Singapore-based company.
  With this arrangement, many corporate lawyers believe that a Singapore subsidiary
registration is particularly ideal to foreign companies operating in a highly speculative
but still promising industry.
  When it comes to confidentiality, foreign companies also enjoy another advantage
since they are only required to submit the audited accounts of their subsidiary
company and not the main headquarter 鈥檚. This is not the case of having a branch
office, another structure for foreign companies, since it is required to submit even the
financial reports of its main headquarter 鈥攁 n arrangement in which most foreign
businessmen are not comfortable with.
  Because of the advantages of having a subsidiary company, most business
registration specialists recommend this particular structure to foreign companies and
entrepreneurs, especially to those who have a long-term business plan in the country
and want to enjoy greater freedom in conducting business.ident, a subsidiary company
鈥攅 ven if 100 percent owned by a foreign business entity 鈥攊 s eligible for all the
local tax benefits and exemptions.
  (Note: While a subsidiary can be owned 100 percent by its foreign parent company,
it can have up to 50 shareholders who may be a local resident or foreigner.)
  Within three years of its incorporation, a subsidiary company enjoys 鈥淶 ero Tax
鈥?on its first S$100,000 chargeable income and another 50 percent tax break on its
succeeding S$200,000. But to qualify for these tax exemptions, this company should
have one individual shareholder who owns a minimum of 10 percent shareholding and
should practice its management and control in Singapore.
  While the Singapore government has not explicitly defined 鈥渕 anagement and
control,鈥?most experts believe that it pertains to the level of authority enjoyed by
board of directors rather than the day-to-day operation of a company.
  Legally speaking, a subsidiary is a separate entity from its main headquarter, and as
a result, the latter is not liable for the financial losses, debts, acts, and lawsuits of its
Singapore-based company.
  With this arrangement, many corporate lawyers believe that a Singapore subsidiary
registration is particularly ideal to foreign companies operating in a highly speculative
but still promising industry.
  When it comes to confidentiality, foreign companies also enjoy another advantage
since they are only required to submit the audited accounts of their subsidiary
company and not the main headquarter 鈥檚. This is not the case of having a branch
office, another structure for foreign companies, since it is required to submit even the
financial reports of its main headquarter 鈥攁 n arrangement in which most foreign
businessmen are not comfortable with.
  Because of the advantages of having a subsidiary company, most business
registration specialists recommend this particular structure to foreign companies and
entrepreneurs, especially to those who have a long-term business plan in the country
and want to enjoy greater freedom in conducting business.