A foreign company can choose to register itself as a subsidiary or a branch office in Singapore. You need to understand both to figure out which entity would work best for your business.
A company that is incorporated locally as a limited liability company is a subsidiary. The majority of stakeholder is a foreign or local company in a subsidiary. A subsidiary is a separate legal entity. However, the business activities carried out by a subsidiary can be the same or different from that of the parent company.
Most of the foreign companies who wish to establish a presence in Singapore chose this as an option. They can hold 100% of the Singapore subsidiary company’s shares and can enjoy all the tax benefits.
It is also exempted from the annual audit of the accounts as it qualifies as a small company
Your company would be considered a tax resident if you were to register a Singapore Subsidiary.
A Singapore branch, however, wouldn’t be considered as a tax resident as the management and control is still owned by the parent company.
A subsidiary enjoys the tax benefits entitled:
New Company Setup
New Company Setup
Existing Company
New Branch Setup
New Setup
Singapore Bank Account