A Singapore subsidiary is the most preferred choice for foreign companies to establish their presence in Singapore. A Singapore subsidiary is a private limited company and the majority shareholder can be a a foreign or a local company. Singapore allows 100% foreign shareholding. Singapore does not restrict the repatriation of any profit or capital of a Singapore subsidiary.
Its is a legal identity distinct from the parent company’s. The parent company’s liability is limited to the share capital it has subscribed. A Singapore subsidiary is generally treated as a local resident company and therefore is entitled to tax benefits available to local companies. Foreign companies are required to use a professional services firm to setup an entity in Singapore.