3 Singapore Company Entities for Foreign Businessmen Jacqueline Chia
With Singapore’s strong economy, worldclass infrastructure, pragmatic government, and corporate tax benefits, the country has always been considered as one of the best business hubs in the Asia Pacific region. With this, the citystate has created three Singapore company entities specifically for foreign businessmen and investors who want to have an auxiliary company in Singapore, according to business solutions provider Rikvin. “These business entities—the subsidiary company, branch office, and representative office have a specific purpose and advantages. With this consideration, any businessman should first determine their main goal and reasons why they want to form a Singapore company,” Rikvin spokesman said. For foreign businessmen and investors planning to engage in a fullblown operation, they may register a subsidiary company or branch office which are the two business entities allowed to perform the same activities of their parent company. But aside from this basic similarity, there is a significant difference between these two. A subsidiary company, being locally incorporated, is considered as a separate legal entity from its parent company. With this, the main office cannot be legally held liable for losses, debts, and liabilities of its singapore subsidiary company. On the other hand, a branch office is considered as a legal extension of its parent company. With such arrangement, the headquarter is directly liable for all the debts, losses, and liabilities of its Singapore Branch Office. Being a legal extension of its parent company, a branch office is also treated as a nonresident business and is taxed as a foreign entity. This is not the case for a subsidiary company which can enjoy local tax benefits since it is incorporated in Singapore. With the advantages of a subsidiary company, Rikvin usually recommends this business entity to their foreign clients who want to form a Singapore company or have an auxiliary entity in the country.
“In terms of tax benefits and limited liability for the foreign companies, we usually advise our clients to register a subsidiary company over a branch office,” Rikvin spokesman said. The business solutions provider added that a branch office does not enjoy the same limit on disclosure unlike a subsidiary company. “A branch office is legally required by the government to submit even the audited accounts and the financial reports of its parent company. This is an arrangement which most foreign investors and businessmen are not comfortable with,” Rikvin said. Rikvin is a company that provides business registration services to local and foreign entrepreneurs and investors and offer consultation regarding the immigration and taxation law, accounting and book keeping requirements, and other compliance matters stated under the Singapore law. For more information visit: Rikvin PTE LTD address: 120 Telok Ayer Street Singapore 068589 phone: +6564388887 email: email@example.com website: http://www.rikvin.com/