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Singapore Representative Office VS Singapore Subsidiary Company
Singapore Representative Office VS Singapore Subsidiary Company
Top Singapore company registration specialist Rikvin.com stated that there are 3 essential business format overseas companies can operate to legitimately conduct business in Singapore.
Singapore,
Singapore,
Singapore
(pr4links.com)
19/09/2010
"Top Singapore company registration specialist Rikvin.com stated that there are 3 essential business format overseas companies can operate to legitimately conduct business in Singapore."
Top Singapore company registration specialist Rikvin.com stated that there are 3 essential business format overseas companies can operate to legitimately conduct business in Singapore. These are namely, Singapore representative office, Singapore representative office, and Singapore subsidiary company.
Note that these industry formats have their own specific functions and has also their respective advantages and disadvantages. Due to this fact, it is vital for international companies to ascertain first their short- and long term business goals ahead of time before they make a decision as to what sort of strategic business formats they will adopt when they setup up business here in Singapore,” Rikvin.com said.
For foreign nationals planning to perform marketplace analysis, Rikvin.com 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 allows 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, Rikvin.com warned that this setup is not permitted to engage in any profit-generating business 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.
Rikvin.com added that a representative office should be only viewed 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 Rikvin.com 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,” Rikvin.com said.
With the advantages of a Singapore Subsidiary Company, Rikvin.com usually recommends this business model over a branch office especially for companies with a long-term plan of staying in Singapore.
More Information:
Rikvin Pte Ltd
http://www.rikvin.com/
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436
Email: info@rikvin.com
About
Rikvin PTE LTD
address: 120 Telok Ayer Street Singapore 068589
phone: +6564388887 begin_of_the_skype_highlighting +6564388887 end_of_the_skype_highlighting begin_of_the_skype_highlighting +6564388887 end_of_the_skype_highlighting
email: info@rikvin.com
website: http://www.rikvin.com/
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