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Establish a Subsidiary in Singapore

Updated on Monday 28th November 2016

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Foreign companies wanting to settle in Singapore can opt to register a subsidiary, a branch office or a representative officeSubsidiaries can be registered in Singapore as private limited liability companies whose majority shareholder is another corporation. The parent company can be local or foreign.

The main particularities of a subsidiary in Singapore are described in our scheme:
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Considering the fact that companies to be registered must appeal to the services of a professional firm, our specialists in company formation in Singapore can draft the Articles of Association of the company and perform all the legal requirements for company registration.

You can also watch the video below for more information on how to open a subsidiary in Singapore:

 

Requirements to set up a subsidiary in Singapore 

Foreign companies are allowed to fully own subsidiaries in Singapore, but at least one of the directors of the subsidiary must be a citizen, have permanent residency or an employment license in Singapore. The directors of a Singapore subsidiary must have clean criminal records. The minimum share capital required to set up a subsidiary in Singapore is 1 S$, as according to the Company Law there is no required authorized capital when establishing a subsidiarySingapore subsidiaries are required to have registered offices and a secretary that must be a resident. Within the first three months from the subsidiary registration an auditor must be nominated because audited accounts must be submitted with the tax authorities each year.

What are the documents required for subsidiary registration in Singapore?

The following documents must be submitted with the Singapore Trade Register:

  • -        the certificate of incorporation of the parent company,
  • -        a statement containing the registered address and directors of the parent company,
  • -        the decision of appointing the subsidiary’s representative in Singapore,
  • -        copies after the passports and proof of residential addresses of the subsidiary’s directors,
  • -        the parent company’s resolution appointing the directors,
  • -        the registered address of the subsidiary in Singapore,
  • -        the Articles of Association of the Singapore subsidiary

Taxation of subsidiaries in Singapore

A Singapore subsidiary will be subject to the same tax regulations applied to all companies registered in the city-state. The corporate tax rate is 17% in Singapore. However, there are companies which can use subsidiaries for tax efficiency strategies. This is the case of holding companies which can establish subsidiaries in Singapore with the purpose of owning shares on which they will be not levied withholding taxes. It is best to ask for accounting services related to the taxation of subsidiary companies in Singapore.

Yearly filing requirements for Singapore subsidiaries

As an independent company, a subsidiary must respect the same annual filing requisites as local companies. According to the Company Law, all companies must file an estimated chargeable income (ECI) form three month before of the end of the financial year. The company must also hold an annual general meeting of the shareholders in which the financial status of the business. One month after the annual meeting, the company must also file an annual return with the Inland Revenue Services in the city-state. Please note that there are different requirements for the annual general meeting which depend on the time of registration of the Singapore subsidiary. Also, for certain subsidiaries, audit requirements will be in place.

Please note that will also offer virtual CFO services for your subsidiary in Singapore.

The procedure for subsidiary registration presented by our Singapore company formation agents

The registration process of a Singapore subsidiary is quick and easy once all the documentation has been properly prepared. The first step will be to submit an application for the approval of the subsidiary’s name and the second step will be the company incorporation. The process usually takes about two days. The Singapore subsidiary must also open a bank account with a local bank.

Please contact our representatives in company formation in Singapore who can provide you all the information about setting up any type of business.

 

Comments

  • Mark 2017-02-16

    Nice article!

  • Steve Anderson 2017-02-16

    Good afternoon, am interested in registering a subsidiary and this article is what I need. I will contact you soon. Thank you!

  • George 2017-02-20

    In my opinion, I think it is much better to register a subsidiary, as it offers more freedom in the decision- making process

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