Singapore is a place where dreams are made and opportunities are readily available for an entrepreneur or a business owner who wish to grow or expand his business. Being part of the few elite countries recognized as one of the most best developed countries not only in Asia but throughout the whole world. Singapore still remains to be the top pick as their headquarters or expansion of operations for businessmen and corporations who wish to grow their business venture. This is mainly because of Singapore’s impeccable work ethic both as a people and the country as a whole. This is clearly demonstrated on Singapore’s strong economy and currency.

For foreign and local businessman who like to setup a Singapore company, here is a detailed article explaining what is a Singapore subsidiary company and some of its benefits.

A Singapore Subsidiary Company is essentially an incorporated private limited company, in which the majority of shares are held by a corporation, foreign or local.

A foreign corporation wishing to form a business in Singapore may register a branch or incorporate a Singapore subsidiary company. A Subsidiary Company in Singapore is considered as a resident company and actually provides a lot of advantages.

Below are the advantages of a Singapore Subsidiary Company:

It is incorporated as a limited liability company, hence it has a distinct legal identity. Since it is a distinct legal entity, the personal assets of the owners or shareholders are separated from the company assets. Thus forming a safety net is put in place between the company and its owners or shareholders.

The foreign company’s liability is limited to the value of the shares it subscribes into the subsidiary.

The foreign parent company may own 100% of the subsidiary.

A subsidiary company, with at least one individual shareholder with minimum of 10 percent shareholding, is entitled to local tax incentives. New start-up companies Pay Zero tax on the first S$100,000 of chargeable income for the first three consecutive years. A further 50% exemption is given on the next S$200,000 of the chargeable income.

Economically speaking, registering a Singapore Subsidiary company provides more advantages more that the above mentioned due to the country’s double-digit economic growth, world-class infrastructure, immigration policies to attract more foreign businessmen and investors, and clean governance.