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Which Singapore Company Setup is the Most Ideal?
Which Singapore Company Setup is the Most Ideal?
Leading Singapore company registration specialist AsiaBiz stated that there are 3 existing business format international companies can operate to legally conduct business in Singapore.
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(pr4links.com)
17/09/2010
"“Being incorporated in Singapore, this business structure is treated as a local resident which means that it can also enjoy the local tax benefits.""
September 17, 2010 - Leading Singapore company registration specialist AsiaBiz stated that there are 3 existing business format international companies can operate to legally conduct business in Singapore. These are namely, Singapore representative office, Singapore representative office, and Singapore subsidiary company.
"Note that these industry standards have their own specific purposes and has also their respective advantages and disadvantages. Due to this fact, it is important for international businesses to ascertain first their short- and long term business goals ahead of time before they make any commitments as to what sort of strategic business formations they will adopt when they setup up business here in Singapore,"” AsiaBiz said.
For foreigners planning to perform marketplace analysis, AsiaBiz more often that not, recommends the Singapore representative company format since it gives a business lot of room for growth and this setup is very flexible to cater to future business needs.
This format permits overseas firms to conduct market research, giving them the chance to test the profitability and demand for their services or goods, the company added.
However, AsiaBiz warned that this setup is not permitted to conduct in any revenue-generating activities and enter into a contract.
Aside from accomplishing marketplace research, the industry registration specialist stated that a representative office is the handiest and is allowed to perform liaison actions on behalf of the international company, oversee the actions of native retailers and vendors of its headquarter, and supply purchaser assistance not associated with technical and repair services.
AsiaBiz added that a representative office should be only seen as a short-term arrangement.
"A Singapore representative office is not allowed to operate for more than three years since this period is enough to determine the viability of a certain product or service," the company said.
For foreign companies planning to engage in trading and revenue-generating activities, the most ideal business arrangement is either a branch office or subsidiary company.
A branch office is treated as a legal extension of its parent company which means that the latter is directly responsible for its debts, losses, and liabilities. This is not the case for a subsidiary company that is treated as a separate entity from its parent company in which the latter enjoys limited liability protection.
In terms of tax benefits, professional consultants in AsiaBiz all agree that a Singapore subsidiary company is a better choice since it enjoys local tax benefits.
“Being incorporated in Singapore, this business structure is treated as a local resident which means that it can also enjoy the local tax benefits. This is not the case for a branch office which is legally considered as an extension of a foreign company,” AsiaBiz said.
With the advantages of a Singapore subsidiary company, AsiaBiz usually recommends this business model over a branch office especially for companies with a long-term plan of staying in Singapore.
For more information contact:
http://www.asiabizservices.com/
Asiabizservices Pte Ltd
120 Telok Ayer Street Singapore 068589
Phone: (65) 6242 6533
Fax: (65) 6303 2670
E-mail: sales@asiabizservices.com
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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