| Foreign businessmen and companies can easily | | | | For foreign companies which already have an |
| setup a business presence in Singapore as long as | | | | existing business and want to expand their |
| they will provide a sound business plan or have a | | | | operation in the country, they should register a |
| strong track record and good reputation. | | | | subsidiary company which is essentially a private |
| But since any foreign entities are prohibited to | | | | limited company in which the main shareholder is a |
| self-register their own business, it is a legal | | | | foreign businessman or another business entity. |
| requirement to hire a professional registration firm | | | | While a subsidiary company may be owned 100 |
| that will act on their behalf during the application | | | | percent by its foreign parent company, this |
| of Singapore company incorporation. | | | | business entity is still considered as a local resident |
| Meanwhile, foreign individuals and companies are | | | | being incorporated in Singapore. With this, it can |
| required to appoint one resident director who | | | | enjoy local tax benefits and exemptions |
| may be a natural citizen or holder of Permanent | | | | (complete tax break from its first S$100,000 |
| Residence Status or Employment Pass. | | | | chargeable income within three years of its |
| However, there is no limit on the number of | | | | Singapore company incorporation). |
| directors regardless if they are foreigners or local | | | | Another advantage of this setup is that foreign |
| residents as long as they have a registered | | | | companies have a limited liability, meaning, they |
| address in Singapore and have not been involved | | | | cannot be held liable for the losses, debts, and |
| in any malpractices. | | | | acts of their subsidiary company which is treated |
| It is important to note that directors are also | | | | as a separate legal entity. |
| legally required to perform these duties stated by | | | | As a local resident business, a subsidiary company |
| the Accounting and Corporate Regulatory | | | | is expected to exercise its management in |
| Authority (ACRA): | | | | Singapore instead of its foreign parent company |
| - Submit the income tax returns of a company. | | | | giving direct orders. |
| - Provide an accurate and truthful declaration of | | | | In case that a foreign company owner or |
| income. | | | | businessman wants to setup a Singapore |
| - Make sure that all declarations regarding their | | | | company but do not want to relocate in the |
| company is accurate even if they have hired tax | | | | country, he should appoint at least one resident |
| agents. | | | | director. But in case that he wants to personally |
| - Perform other statutory requirements stated by | | | | manage his business, he is required to apply for |
| Singapore's Companies Act. | | | | Employment Pass or EntrePass. |