Benefits Of A Wholly Owned Subsidiary In Singapore

By Author: Bryan Wong
Total Articles: 11
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Foreign companies who are planning to venture into Singapore are highly recommended to register a wholly owned subsidiary company in the country. While there are other options available as well for foreign owned companies in Singapore such as a branch office, but no other form of company has the number of benefits which a subsidiary company can provide. Some of the key benefits of foreign owned subsidiaries in Singapore are as follows:

1) The most important advantage of subsidiary companies in Singapore is that of safeguarding of personal assets. If the owner of the Singapore Company is an individual, then his or her personal assets are safeguarded from any liability, debts or claims which may arise out of the business operations of the Singapore based company. At the same time, if the foreign owner is a corporate entity, then the head office or parent company’s assets are similarly safeguarded from liabilities of the Singapore based subsidiary.

2) Since subsidiary companies are the same as a private limited company in Singapore and are given a separate legal status from its owner, these companies have the right ...
... to choose its own name, their own business activities and management structure irrespective of what the parent company follows. In other forms of business such as a branch office, usually you have to stick to the same business format and company structure as your parent firm. However, in the case of a subsidiary, they are separate legal entities who can choose their own Memorandum and Articles of Association and work accordingly.

3) Usually a subsidiary company is much simpler to setup than other forms of business. It takes about one or two working days to complete the entire company registration procedure and the documentation required is minimal. The only thing required is the particulars of the proposed director and shareholders of the foreign owned subsidiary in Singapore.

4) The ongoing compliance requirements of a wholly owned subsidiary in Singapore are also much simpler than other businesses such as a branch office. Also the compliance requirements are confined to the activities of the subsidiary only and not what the parent company is doing overseas. However, for branch offices, usually they have to submit the audited accounts of the parent company as well while filing annual returns.

5) Subsidiary companies are typically treated as local owned companies in Singapore even if the owner may be a foreigner. Hence all business and tax incentives available to local firms are also available to the subsidiary company.

Author Bio
Bryan Wong is a business analyst in the Asia-Pacific region and in his free time writes business articles. In this article, Bryan talks about Singapore wholly-owned subsidiary and Starting a company in Singapore.