Singapore is now a popular place to raise international funding. Companies leverage its operational and legal convenience to set up a base or regional headquarters. There are close to 6000 Indian companies registered in Singapore, of which 2000 are active, says George Abraham, CEO of Singapore Indian Chamber of Commerce & Industry. If you have plans for a Subsidiary company in Singapore, then this is article will give you all the guidance.
Singapore with its 3.5 lakh Indian Diaspora (9.1% of the population) is far more socio-culturally accepting and geographically closer. And with 199 flights a week from India, it’s easier and cheaper to fly to Singapore from anywhere in the country. A Singapore subsidiary can be wholly owned by a foreign parent company and is considered a separate legal entity from the parent company. It is important to note that under the FEMA Act, the intention to stay outside or inside India for an uncertain period is important. This is different from the provisions of section 6 of Income Tax Act. To be a resident under Income Tax Act, an individual has to only stay in India for a specified number of days. So, an individual may be nonresident under Income Tax Act during a year and may be resident as per the FEMA Act, during the same year. For any Legal and Accounting support, happy to help you,