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Singapore Subsidiary Company for Foreign Entrepreneurs
Singapore Subsidiary Company for Foreign Entrepreneurs
While there are several business structures a foreign company can adopt, most experts believe that the most ideal is the subsidiary company that is treated as a local entity which makes this eligible for all the local tax benefits and exemptions.
Singapore,
Singapore,
Singapore
(pr4links.com)
27/09/2010
"While there are several business structures a foreign company can adopt, most experts believe that the most ideal is the subsidiary company that is treated as a local entity which makes this eligible for all the local tax benefits and exemptions."
While there are several business structures a foreign company can adopt, most experts believe that the most ideal is the subsidiary company that is treated as a local entity which makes this eligible for all the local tax benefits and exemptions.
“Surprisingly, even if a subsidiary is solely owned by its foreign parent company, it is still eligible for local benefits and exemptions. For example, it is qualified to receive a 100 percent and 50 percent tax breaks on its first S$100,000 and S$200,000 chargeable income, respectively, within the three years of its incorporation,” business registration firm Rikvin said.
Aside from the tax benefits, foreign companies with a subsidiary office also enjoy unrestricted repatriation of their earnings in Singapore. With this, Rikvin believes that this business setup is highly ideal to small- and medium-sized foreign companies.
To further lure foreign business organizations to setup a Singapore company, the government provides limited liability protection which means that parent companies will not be legally liable for the debts, losses, and acts of their subsidiary company.
“The limited liability arrangement is the most notable feature of a Singapore subsidiary company. With this, foreign parent companies will not lose money except the ones they had invested on their subsidiary company,” the business registration firm said.
Rikvin added that this protection is particularly important to foreign companies that are operating in a highly speculative, but still promising market.
Since a subsidiary company is treated as a separate legal entity from its parent company and considered as a local resident business, it is a requirement to exercise its management and control locally instead of receiving direct supervisions from the main headquarter.
Another legal requirement for a foreign company with a subsidiary is the appointment of a Singapore resident director and a qualified secretary who must have a registered residential address in the country.
Meanwhile, a foreign company may appoint its own employee from the main headquarter as a resident director. But to do this, the foreign employee should first apply for Employment Visa, EntrePass, or Dependant Pass.
Essentially, a resident director does not have a role in the company operation other than to satisfy the statutory requirements such as ensuring the accuracy of the company’s declaration even with the service of tax agents; submitting the income tax returns of the company; and providing an accurate declaration of income.
In terms of the number of shareholders, a subsidiary company is allowed to have a minimum of one and a maximum of 50.
For more information visit:
http://www.rikvin.com/
Rikvin Pte Ltd
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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