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6 reasons why Singapore subsidiary company incorporation is best for foreigners

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As a foreign entity plans to incorporate company in Singapore, getting confused about which option to choose for a best long-term business in Singapore is very much possible. Amongst 3 major options of company incorporation that exists for foreign companies, Singapore subsidiary company registration is the best option for most companies, irrespective of their size such as small, medium or large or multinational. here are 6 key reasons why subsidiary company in Singapore is best option to choose. For More information visit this link: – PowerPoint PPT presentation

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Title: 6 reasons why Singapore subsidiary company incorporation is best for foreigners


1
  • 6 reasons why Singapore subsidiary company
    incorporation is best for foreigners

2
  • As a foreign entity plans to incorporate company
    in Singapore, getting confused about which option
    to choose for a best long-term business in
    Singapore is very much possible. Amongst 3 major
    options of company incorporation that exists for
    foreign companies, Singapore subsidiary company
    registration is the best option for most
    companies, irrespective of their size such as
    small, medium or large or multinational.

3
Here are 6 key reasons why subsidiary company in
Singapore is best option to choose.
  • 1. 100 foreign share holding is allowed
  • 2. Assets of parent foreign company are treated
    separately
  • 3. Local tax benefits can be enjoyed
  • 4. Exemption and Government grants can be enjoyed
  • 5. Minimum paid up capital is Sgd 1
  • 6. Tax Reliefs/exemptions for Singapore
    subsidiary companies
  • Conclusion

4
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5
 1. 100 foreign share holding is allowed
  • According to Singapore companies act, 100
    foreign share holding is allowed for a Singapore
    subsidiary company. While there is a mandatory
    requirement of at least one local Singapore
    resident director while incorporation, directors
    are not necessarily required to be the share
    holders and the share holders and directors of a
    Singapore subsidiary company can be different
    entities. This flexibility allows foreign
    companies to run their business in Singapore.

6
2. Assets of parent foreign company are treated
separately
  • While incorporating company as a foreign entity,
    one fear that occurs is the liability, especially
    a case of debt if arises. Fortunately, in
    Singapore, the liabilities of a Singapore company
    are based on share capital and not the assets of
    the parent company I.E. the foreign company that
    has incorporated the Singapore subsidiary
    company. Parent foreign company is not required
    to declare its assets and thus are not held
    liable in any case.

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3. Local tax benefits can be enjoyed
  • Singapore is often cited as a leading example of
    countries that continue to have a lower corporate
    income tax rates in order to attract foreign
    businesses to invest in the Country. Singapores
    low tax rate is, in fact, one of the major
    reasons that inspire foreigners to incorporate
    company in Singapore.

8
  • Under Start-up Tax Exemption Scheme (SUTE), tax
    exemption is given on normal chargeable income of
    up to S300,000 for each of the first three
    consecutive years of operation. In fact, for the
    first S100,000, after 100 exemption, the exempt
    amount is S100,000. Then for the next S200,000,
    after 50 exemption, the exempt amount is
    S100,000.

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  • Hence the total exempt amount for income up to
    S300,000 is S200,000. 
  • Subsidiary company in Singapore is usually
    treated as resident and is hence can be entitled
    to enjoying all the tax benefits that are
    available to Singapore private limited companies,
    including a low corporate tax rate of 17 as well
    as the income tax based on the single-tier system.

10
4. Exemption and Government grants can be enjoyed
  • Since Singapore subsidiary company is given the
    status of a local/resident company, its also
    entitled for receiving various tax exemptions as
    well as government grants that are given by
    Singapore government to local (private limited)
    companies. This includes different types of
    grants offered to companies such as Capability
    Development Grant and Enhanced Isprint Grant.

11
5. Minimum paid up capital is Sgd 1
  • Many countries around the world including Europe
    have legal requirements for minimum authorized,
    subscribed and paid-up capital that is quite high
    for domestic companies. Sometimes their amount is
    tens of thousands of Euros.Fortunately, a
    Singapore company can be registered with a
    minimum paid-up capital of S1 (Or its equivalent
    in any currency).

12
6. Tax Reliefs/exemptions for Singapore
subsidiary companies
  • If the subsidiary company meets the requirements
    of tax residency, they can qualify for certain
    tax benefits. The companies can benefit from the
    tax exemptions provided under the Avoidance of
    Double Taxation Agreements (DTAs). Singapore has
    signed with other countries and tax exemption for
    new start-up companies. 

13
  • Lastly, under section 13 (8) of the Income Tax
    Act, a subsidiary company that has tax residency,
    can also enjoy tax exemption on foreign-sourced
    service income and foreign-sourced dividends.
  • Government and tax authorities keep on bringing
    extra benefits and advantages for foreign
    companies time-to-time which can be applied on
    Singapore subsidiary companies.

14
Conclusion
  • While there are at least 3 major company
    incorporation options in Singapore, those who
    choose subsidiary company registration as the
    type of their incorporation receive maximum
    benefits as described above. Enjoying these
    benefits, however, is only possible if the
    respective company files timely annual financial
    statements, complies with Singapore laws and
    operates a fair business in accordance with
    Singapores policies.

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  • The companys management team is required to be
    watchful, aware and interested in grabbing every
    possible opportunity so that the maximum funds
    and advantages can be availed in the favour of
    the company.

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  • Precursor has years of proven expertise in not
    only highest quality, quick and fully compliant
    company incorporation in Singapore, but also a
    full range of corporate services after
    incorporation such as working end-to-end in
    assisting The clients in the various tax
    exemptions, government grants and benefits of
    other schemes that are applicable.

17
  • The expertise of doing all the rigorous work
    required in complying and securing various grants
    and exemptions makes precursor the obvious first
    choice for serious companies that are looking to
    establish a long-term profitable business in
    Singapore.

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  • For More information visit this link
  • http//precursor.com.sg/6-reasons-singapore-subsid
    iary-company-incorporation-best-foreigners/

19
Contact Us
  • Precursor Groups pte.ltd.
  • Read here for complete details
  • http//precursor.com.sg/
  • Email id clients_at_precursor.com.sg
  • Contact for (65) 6336 5500 

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