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Singapore Subsidiary Company: The Ideal Business Model for Foreign Entrepreneurs
Singapore Subsidiary Company: The Ideal Business Model for Foreign Entrepreneurs 
There are three business models which foreign entrepreneurs, investors, and companies can adopt in order to effectively and legally operate in Singapore: a subsidiary company, representative office, and branch office which have their own purposes and goals.
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(pr4links.com)
13/09/2010
"“Each of these business models has a specific purpose which must be greatly considered in order to have a successful company or auxiliary entity in Singapore, AsiaBizServices spokesman said during an interview."
September 13, 2010 - There are three business models which foreign entrepreneurs, investors, and companies can adopt in order to effectively and legally operate in Singapore: a subsidiary company, representative office, and branch office which have their own purposes and goals.
According to Singapore Subsidiary Company registration firm AsiaBizServices, it is important for foreign businessmen to determine their goals before choosing the business model they want to adopt.
“Each of these business models has a specific purpose which must be greatly considered in order to have a successful company or auxiliary entity in Singapore, AsiaBizServices spokesman said during an interview.
For business entities planning to engage in market research, the company believes that a Singapore representative office is generally the most ideal, particularly for foreign company owners who are not yet sure of the viability of their business in the country.
However, it is important to note that a representative office is prohibited to engage in any activities that will generate revenue since it is not considered as a business entity per se.
Generally, this auxiliary office is seen as a short-term arrangement since the government does not allow this to operate for more than three years as it deems that this period is enough for foreign companies to determine the profitability of their services or goods.
According to AsiaBizServices, a representative office may upgrade to a subsidiary company or branch office if it wants to continue its presence in the country and engage in a full-blown operation. However, the company said that these two business models have differences that must be considered.
First, a subsidiary company is allowed to engage in any business activities unlike a branch office which should only perform the undertaking of its parent company.
Another difference is that a subsidiary company is treated as a separate legal entity from its main office unlike a branch office which is considered as an extension of its parent company. With this arrangement, a branch office does not enjoy local tax benefits while a subsidiary company is eligible for these advantages.
Also, a foreign company with a branch office is legally liable for the latter’s losses, liabilities, and debts. This is not the case for a subsidiary office in which its parent company enjoys limited liability protection.
“Because of the advantages of being a subsidiary company, most foreign entrepreneurs, investors, and business organizations prefer this model over a branch office,” AsiaBizServices said.
However, note that that foreign businessmen are prohibited to self-register their own Singapore company which means they are required to hire a professional firm that will conduct the processes involving business registration.
More Information:
AsiaBizServices is the leading Singapore business solutions provider and has successfully helped foreign and local entreprenuers form a Singapore Subsidiary 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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