A subsidiary company is one of the options for foreign businesses or companies that are planning to expand their operation in Singapore. As many have known, the business legislation in Singapore is favorable for foreign investors. They even are allowed to hold a hundred percent ownership of the companies they set up in the country. Taxes in Singapore are also low and companies may repatriate their earnings to the parent company in a foreign country.
A subsidiary company is recommended for small to medium sized foreign companies that wish to start up a business in Singapore. It is considered a separate entity from the parent company. Thus, the parent company is only liable to the share capital it has subscribed while it is entitled to tax incentives like a local company.
The parent company of its subsidiary in Singapore is allowed full ownership of the shares. It is required for a Singapore subsidiary to have one direction who resides in Singapore, whether they are a Singapore citizen, permanent resident, or someone who holds an Employment Pass. The director must be a minimum of 18 years old. To open a subsidiary, the applicant must have paid-up capital for a minimum of S$1. It is allowed for the parent company to be the 100% shareholder. The company in Singapore must also have a local physical address. The registered address can be a commercial office or even a home office. After successfully getting registered, the subsidiary company must appoint a secretary who is also a local resident of the country, as well as an auditor that’s appointed within a maximum of three months prior incorporation.
There are documents that are required for Singapore company registration of subsidiary in Singapore:
1. Certificate of incorporation of the parent company
2. An extract from the Registrar of Companies showing current registered address and directors of the parent company
3. Corporate resolution of authorization of an individual to sign necessary documents regarding the subsidiary company on behalf of its foreign parent company
4. Passport particulars and address information of the appointed directors of the subsidiary company
6. Registered address details
7. Consent to Act As Director signed by the appointed company director
8. Memorandum & Articles of Association for the subsidiary company in Singapore
After providing all the necessary documents in English, a company then may go through the registration procedure. To do this, a foreign company must engage with a professional corporate services firm. All the registration procedures can be completed online and can be done in one to two days.
After getting the company incorporated by an agency, the next step is to open a bank account. A company is free to choose from whether local or international banks in Singapore.
In the long run, a subsidiary company must adhere to tax regulations and pay up the required amount in a timeline manner and also fulfill the annual filing requirements as stated by the law. A subsidiary company in Singapore may hire an accounting service that is capable of providing the company with expertise in the field and help with its financial department activities.