One of the types of business entity that can be run in Singapore is a subsidiary company. A subsidiary company is an available choice for foreign business or companies that are looking for a chance to expand their business operation in Singapore. The business legislation in Singapore is well known for its openness toward foreign investors, so that they are allowed to fully own the companies they set up in Singapore. Moreover, Singapore’s tax is low and companies can repatriate their earnings to the parent company in their original country.
For small to medium sized foreign companies, opening up a subsidiary in Singapore is very recommended. A Singapore subsidiary company is viewed as a separate entity from its parent company in its original country. This makes the parent company liable to share the capital it has subscribed. However, the parent company is entitled to tax incentive like a local company.
Requirements of a Subsidiary Company
As mentioned before, the parent company is allowed to have full ownership of the shares of the subsidiary company in Singapore. However, the subsidiary company must have a local director who resides in Singapore, and is either a Singapore citizen, permanent resident, or the holder of an Employment Pass. The person eligible to be a local director of a Singapore subsidiary company is someone of at least 18 years of age and does not have a record of crime and bankruptcy in the past. Another requirement for a subsidiary company is that it must have paid-up capital for at least S$1. Anyone can be the shareholder for the subsidiary company except the local director. To fulfill another requirement for company incorporation in Singapore, a subsidiary company must also have a local physical address. This registered address can be a home office or commercial office, as long as it is not a post office box address.
For company registration, you will also have to provide several documents as follows:
- Parent company’s certificate of incorporation
- Extract from the Registrar of Companies that shows current registered address and directors of the parent company
- Corporate resolution of authorization of an individual to sign necessary documents related to the subsidiary company on behalf of its original foreign parent company
- Passport particulars and address of the directors of the subsidiary company
- Details of the registered address in Singapore
- Consent to Act As Director; signed by the appointed resident director of the subsidiary company
- A Memorandum & Articles of Association for the subsidiary company in Singapore
All the documents mentioned above must be submitted in English.
After fulfilling all the requirements for company registration, a company must apply to get it registered and incorporated. After being successfully incorporated, a subsidiary company must appoint a company secretary within a maximum six months. The secretary must be a local resident of the country. After that, the subsidiary company must also find an auditor after maximum three months post company incorporation.
If any of the requirements mentioned above is not clear, or if you still have more questions about the registration of a Singapore company registration, you can ask to a company registration firm. As a foreigner, you are obliged to register your company with the help of one of these firms.