What Is A Subsidiary Company?
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
- Shareholders
- At least one corporate shareholder
- 100% local or foreign coporate shareholding is allowed
- Minimum 1 to maximum 50 shareholders
- Resident Directors
- At least one local director (Singaporean/ Singapore P.R)
- Employment Pass/ EntrePass Holders are allowed
- Must be above 18 years old
- Listed director(s) must not be an un-discharged bankrupt or convicted of any criminal malpractice
- 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
Registration Procedure
The registration of a Singapore subsidiary or the registration of a local company by a foreigner can be easily done online. However, foreign companies are required to appoint a professional corporate services firm to set up a company in Singapore. Generally, the registration can be expected to be completed within a day upon submission of all necessary information and documents if everything goes smoothly. Be sure to prepare all of the necessary documents before the procedure so that the process to incorporate a company in Singapore will be quicker. There are also certain requirements that need to be met after completing your company registration in Singapore, so be sure to check with ACRA for the most updated information.
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.
If you require assistance in setting up a subsidiary company in Singapore, contact us today for professional support and to answer your queries.
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