General Characteristics

A subsidiary is a private limited company incorporated in Singapore whose majority shareholder is a foreign company. As it is considered a resident company and entitled to Singapore tax benefits, the Singapore subsidiary is the most preferred choice of business registration for establishing a presence in Singapore. While a subsidiary is considered a separate legal entity from the foreign company, the foreign company’s liability is limited to the share capital it has subscribed and its own assets are safely curtailed from the debts and liabilities of the subsidiary company.