With Singapore’s attractive corporate laws and taxation system, the country has been attracting thousands of foreign and international companies interested to expand their operation in the Asia Pacific region or/and tap the city-state’s economy which is one of the largest in the world. Foreign companies can adopt any of the three business structures which include a representative office, branch office, and subsidiary company which is considered as the most ideal for businessmen who have a long-term plan of staying in the country. One of the most notable advantages of a Singapore subsidiary company is the greater freedom in conducting commercial and revenue-generating activities. In fact, it can engage in any business, as long as this is considered legal in the country, even if this is not included in the activities of its parent company. This is possible since a subsidiary company is treated as a separate legal entity from its parent company, which also means that it can have a different name if it wants to. Foreign companies with a subsidiary company also enjoys limited liability protection, as a result, their assets are shielded from the debts, losses, liabilities, and acts of their Singapore-based company. Even if a subsidiary company can be solely owned by its parent company, it is still considered as a “tax resident,” a status that makes it eligible for all the local tax exemptions and benefits. In Singapore, newly incorporated companies, including subsidiary companies, can enjoy “Zero Tax” on their first S$100,000 chargeable income and another 50 percent tax break on their S$200,000 within three years of their incorporation. But to qualify for these tax exemptions, companies should practice their management and control in the country, and should have at least one individual shareholder who will own a minimum of 10 percent shareholdings. And in case that a company fails to meet these qualifying conditions, it may still receive tax incentives usually in the form of reduced tax rates of 4.5 percent on their first S$10,000 chargeable income and another 8.5 percent on their succeeding S$290,000. In addition, some newly incorporated companies which did not meet the qualifying requirements for complete tax exemption can enjoy 5 to 10 percent tax rates if they belong to certain industries such as offshore leasing, arts and antique dealer, oil trader, cyber trader, finance and treasury, etc.