A subsidiary company in Singapore is one of the available options for foreign corporations looking to launch their presence in Singapore. Generally, it is a private limited company in Singapore whereby the parent company (local or foreign) is the majority shareholder.
Singapore’s business legislation has made Singapore the most preferred choice for foreign companies as and Singapore allows 100% foreign shareholding and liabilities are limited to the value of shares subscription. Singapore has also one of the lowest corporate tax rates hence attracting many foreign set-up in Singapore.
A subsidiary set up in Singapore is considered a local resident company and is also entitled to tax incentives and other benefits extended to local companies.
Registration Requirements – Singapore Subsidiary
Similar to a private limited company, the subsidiary will have to provide the following information:
- Proposed Subsidiary/ Company Name
- At least one corporate shareholder
- 100% local or foreign coporate shareholding is allowed
- Minimum 1 to maximum 50 shareholders
- Resident Directors
- Company Secretary
- A natural person who is local (Singaporean/ Singapore P.R)
- Must be appointed within 6 months from incorporation date
- Paid-up Capital/ Share Capital
- The minimum requirement is S$1
- Registered Address
- Must be a physical address in Singapore
- PO Box not allowed
- Use of residential address allowed only for certain types of business
The registration of a Singapore subsidiary can be easily done online. However, foreign companies are required to appoint a professional corporate services firm to setup an entity in Singapore. Generally, the registration can be expected to be completed within a day upon submission of all necessary information and documents.
Bank Account Opening
After registering the subsidiary with ACRA, the corporate bank account can be opened with any one of the local or international banks in Singapore.
For more information on setting up a subsidiary in Singapore, contact us.