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Singapore Company: A Guide for Foreign Businessmen and Investors
Singapore Company: A Guide for Foreign Businessmen and Investors
In Singapore, there are three business entities available for foreign companies wanting to expand their operation in the country: a subsidiary company, branch office, or representative office, with each of these has its own specific purpose and advantages.
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(pr4links.com)
13/09/2010
"“They should decide if they just want to determine the market viability of the country, explore the profitability of the Asia Pacific region, or really want to have a long-term presence in the city-state. Every thing should be considered including "
In Singapore, there are three business entities available for foreign companies wanting to expand their operation in the country: a subsidiary company, branch office, or representative office, with each of these has its own specific purpose and advantages.
According to AsiaBiz Services, one of the leading business solutions providers in Singapore, foreign entrepreneurs and companies should determine first the real reason why they want to have a business presence in Singapore.
“They should decide if they just want to determine the market viability of the country, explore the profitability of the Asia Pacific region, or really want to have a long-term presence in the city-state. Every thing should be considered including those which may appear trivial,” AsiaBiz Services spokesman said in a statement.
For foreign entrepreneurs who want to test the profitability of their business in Singapore before engaging in a full-blown operation, most experts believe that a representative office is the most ideal arrangement.
Legally speaking, a representative office is not a business entity per se as it is prohibited to perform any activities that will generate profit.
Meanwhile, these are the only activities a representative office can engage to: perform research and market study; act as a liaison office without entering into a contract; oversee the local agents and distributors of its parent company; and provide non-technical customer service.
It is important to note that a representative office is not allowed to operate for more than three years as the government considers that this period is enough for any foreign companies to determine the profitability of their business.
In case that a foreign company wants to engage in a full-blown operation after determining the viability of its product or service in the country, it may register a subsidiary company or branch office.
Most experts believe that a subsidiary company is a more ideal business entity compared to a branch office with its several tax incentives and limited liability protection.
A subsidiary company, being a locally incorporated business in Singapore, is treated as a local resident which means that it can enjoy several tax benefits and exemptions unlike a branch office.
In addition, foreign companies with a subsidiary company can enjoy limited liability which means that they cannot be held liable for the losses, debts, and liabilities of their Singapore auxiliary company. This is not the case for a branch office which is treated as a legal extension of its parent company.
More Information:
AsiaBiz is the leading Singapore business solutions provider and has successfully helped foreign and local entreprenuers form a Singapore company.
website: http://www.asiabizservices.com/
email: sales@asiabizservices.com
address: 120 Telok Ayer Street Singapore 068589
phone: +6562426533
About
Asiabiz Services Pte Ltd
120 Telok Ayer Street
Singapore 068589
Phone: (+65) 6242 6533
Fax: (+65) 6303 2670
E-mail: sales@asiabizservices.com
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