Singapore Subsidiary Registration for Foreign Companies Jacqueline Chia Foreign business organizations that are interested to operate in Singapore may register a subsidiary company which is essentially a private limited company with majority of its shares owned by a foreign company or individual. While there are other business structures foreign companies can adopt, Singapore’s leading business registration firm AsiaBiz Services believes that a subsidiary provides the greatest freedom in conducting commercial activities. “Under the Singapore Companies Act, a subsidiary is even allowed to conduct business activities that are not part of its parent company’s operation. This is not the case in a branch office, another type of business structure for foreigners, which should only do the activities also performed by its main headquarter from abroad,” AsiaBiz added. Just like a private limited company, a subsidiary is also qualified for the local tax rates and other corporate benefits and developmental incentives typically given to locally incorporated companies in Singapore. “A subsidiary company, even if this is solely owned by its parent company, is still eligible for the 100 percent and 50 percent tax exemptions on its chargeable income of S$100,00 and S$200,000, respectively, within the first three years of its operation,” the firm said. While a subsidiary is allowed to be 100 percent owned by its parent foreign company, the government also permits up to 50 shareholders regardless if they are foreign or Singaporean businessmen. Contrary to a popular belief, the Singapore subsidiary registration is not only popular to international companies but also to small and mediumsized enterprises due to its several advantages. “One of the most notable advantages in a subsidiary company, aside from its tax incentives, is the limited liability protection enjoyed by foreign companies, meaning, they are not liable for the financial losses, debts, and claims related to their Singaporebased company,” the business registration firm said. Despite the corporate incentives of having a subsidiary company, AsiaBiz said that foreign businessmen are legally required to appoint at least one local resident as a director of their subsidiary company. A local resident director may be a natural citizen or a foreigner who has been issued with Employment Pass, PR Status, EntrePass, and Dependant Pass. In addition, a subsidiary company should appoint a qualified secretary, who must also be
a local resident, within six months of its incorporation. To make sure that all the legal provisions will be satisfied, the Singapore government requires foreign companies and individuals to hire a professional registration firm during the business application process. More Information: AsiaBiz is the leading Singapore company that provides Singapore Company Incorporation services to local and foreign entrepreneurs and investors and offer consultation regarding the immigration and taxation, accounting and book keeping requirements, and other compliance matters stated under the Singapore law. AsiaBiz has successfully helped thousands of foreign and local entrepreneurs form a Singapore company. AsiaBizServices.com address: 120 Telok Ayer Street Singapore 068589 phone: +6563034614 website: http://www.asiabizservices.com/
Published on Oct 10, 2011
Foreign business organizations that are interested to operate in Singapore may register a subsidiary company which is essentially a private...