Branch office Vs Subsidiary company in Singapore?

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Branch office Vs Subsidiary company in Singapore?
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Branch Office and Subsidiary Company in Singapore
are two of the most well known and preferred
types of company incorporation in Singapore from
foreigners perspective. In this post, were
comparing both Singapore branch office and
Singapore subsidiary company to help you
comparing their pros and cons, specialties and
features in order to identify the best Singapore
company incorporation option that works for you. 
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1. Separate Legal Identity and Asset Protection
A Singapore branch office is considered an
extension of the parent company and is not a
separate legal entity of its own. This means that
the liabilities of a Singapore branch office are
derived from the liabilities and assets of the
respective parent company that may be located in
a foreign nation. It can, however, be sued in
Singapore in the case of any dispute. Hence the
assets of the parent company will be not
protected in this case.
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A subsidiary company in Singapore, on the other
hand, is a separate legal entity from the foreign
company even if the foreign company holds 100
shares. This means that the foreign company does
not have to bear the losses and liabilities of
the Singapore Subsidiary company. In this case,
the assets of both the subsidiary and the parent
company can be protected even if either company
are sued.
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2. Activities conducted

• Singapore branch office, as being an extension of
  its parent foreign company is only allowed to
  carry out activities defined in its constitution
  and cannot perform other activities in Singapore
  that are not aligned with the activities of the
  respective foreign company.

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• Singapore subsidiary company can, however, be
  made to perform any activity, as long as these
  are defined clearly at the time of incorporation
  of the respective Singapore subsidiary company.
  Being a separate legal entity from its parent
  foreign company, aligning with the activity of
  foreign company is not necessary.

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3. Filing Returns

• Singapore subsidiary companies need to Prepare a
  set of financial statements and to submit their
  financial statements in extensible Business
  Reporting Language when filing annual returns
  with the Accounting and Corporate Regulatory
  Authority in Singapore.
• However, branch offices are required to submit
  the audited accounts of the parent company as
  well as the audited financial statements of its
  branch office.

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4. Tax exemptions

• Incorporation of branch office in Singapore is
  not considered a resident for the purposes of
  tax. Thus,  making it ineligible for tax
  incentives that are available for private limited
  companies in Singapore.
• Registration of a Singapore Subsidiary company,
  on the other hand, is very tax efficient when it
  comes to them working as an independent
  organization. A Singapore subsidiary company
  enjoys various benefits, exemptions and
  advantages that are made available for Singapore
  resident companies.

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• In summary, a branch office is preferred by
  multinational corporations (MNCs), banks and
  insurance companies that want to use the brand
  name and finances of the parent company to secure
  licences and business contracts, while a
  subsidiary company is preferred by many foreign
  companies when establishing a business entity in
  Singapore.
• No option is better than another and may apply to
  your unique situation and needs. Whats advisable
  is that you carefully compare both, evaluate what
  works best in accordance with your need and
  situation and then take an informed choice.

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• Whether you are still confused about which
  Singapore company incorporation option is best in
  your situation or wanting to get a company
  incorporated. Precursor has years of experience,
  award-winning team of highly qualified
  professionals, proven track record and does rank
  amongst top 30 firms in Singapore. Right from
  company incorporation to accounting, auditing,
  company secretariat and others, precursor has a
  full range of corporate services to help your
  business grow.

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• For More information visit this link
• http//precursor.com.sg/branch-office-subsidiary-c
  ompany-singapore/
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