Subsidiary Company For Foreign Companies in Singapore

Sept. 23, 2010 - PRLog -- While there are several business structures a foreign company can adopt, most experts believe that the most ideal is the Singapore subsidiary company that is treated as a local entity which makes this eligible for all the local tax benefits and exemptions. To know more info about subsidiary company, follow link: http://www.rikvin.com/incorporation/setting-up-a-singapore-subsidiary-company/

“Surprisingly, even if a subsidiary is solely owned by its foreign parent company, it is still eligible for local benefits and exemptions.  For example, it is qualified to receive a 100 percent and 50 percent tax breaks on its first S$100,000 and S$200,000 chargeable income, respectively, within the three years of its incorporation,” business registration firm Rikvin said.

Aside from the tax benefits, foreign companies with a subsidiary office also enjoy unrestricted repatriation of their earnings in Singapore.  With this, Rikvin believes that this business setup is highly ideal to small- and medium-sized foreign companies.

To further lure foreign business organizations to setup a Singapore company, the government provides limited liability protection which means that parent companies will not be legally liable for the debts, losses, and acts of their subsidiary company.

“The limited liability arrangement is the most notable feature of a Singapore subsidiary company.  With this, foreign parent companies will not lose money except the ones they had invested on their subsidiary company,” the business registration firm said.

Rikvin added that this protection is particularly important to foreign companies that are operating in a highly speculative, but still promising market.

Since a subsidiary company is treated as a separate legal entity from its parent company and considered as a local resident business, it is a requirement to exercise its management and control locally instead of receiving direct supervisions from the main headquarter.

Another legal requirement for a foreign company with a subsidiary is the appointment of a Singapore resident director and a qualified secretary who must have a registered residential address in the country.

Meanwhile, a foreign company may appoint its own employee from the main headquarter as a resident director.  But to do this, the foreign employee should first apply for Employment Visa, Singapore EntrePass, or Dependant Pass. To know more about Entrepass and the likes services, visit: http://www.rikvin.com/immigration-work-visas/comparison-s...

Essentially, a resident director does not have a role in the company operation other than to satisfy the statutory requirements such as ensuring the accuracy of the company’s declaration even with the service of tax agents; submitting the income tax returns of the company; and providing an accurate declaration of income.

In terms of the number of shareholders, a subsidiary company is allowed to have a minimum of one and a maximum of 50.

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Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.