A subsidiary company is a partially or wholly owned by another company, which is able to own 50% or more of the subsidiary’s shares. It can be a limited liability company or a company. The entity that controls the subsidiary company is the parent company.
A subsidiary company is the recommended choice for small-size to midsize foreign companies that would like to create their presence in Singapore. A Singapore subsidiary company is not the same entity as its foreign parent company even if the foreign company is the only shareholder. The subsidiary company’s liabilities are not extended to the parent company and the assets of the parent company will remain protected.
Cost of Subsidiary Company Service from SGD 2199 onwards
Please note that:-
– Fee quoted excludes 7% GST, government filing fees, any out-of-pocket expenses; and
– A presentation of your proposal prior to our engagement will be for the management’s agreement upon review of the relevant documents required.
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Features of Subsidiary Office Setup
- The major shareholder is a corporate entity
- A separate legal entity from the parent company.
- The shareholder can be a foreign or a local company.
- 100% of foreign ownership is permitted, so it’s a positive investment for foreign investors who would like to create their presence in Singapore.
- Get the same tax benefits as local companies, since it’s considered to be a local company.
- Parent company can own 100% of the subsidiary company in Singapore.
- One local director, either a citizen of Singapore, or a Singapore Permanent Resident (PR), who should be at least 18 years old, must be appointed.
- Minimum paid up capital should be S$ 1.
- A local registered physical address which cannot be a PO Box.
- The director must employ at least a qualified company secretary who should be a Singapore citizen, a Dependent Pass holder, Employment Pass holder, EntrePass holder or a permanent resident of Singapore.
- An auditor must be appointed within three months of the incorporation of the Singapore Company.
- The audited accounts must be filed annually with the Singapore income tax authorities.
Required Documents for the Registration Of the Subsidiary Company
- The parent company’s incorporation certificate of the parent company.
- An extract of company from ACRA.
- Residential address and passport details of the directors.
- Signatory approval from the directors to appoint of the directors for Singapore subsidiary company.
- The Singapore subsidiary company’s registered address.
- Constitution/Memorandum & Articles of Association (M&AA) of the subsidiary company.
Procedure and Timeline for Singapore Subsidiary Registration
The registration of subsidiary companies in Singapore is fully computerized. There are 2 steps involved in ACRA’s registration procedure:
1. Name reservation and Approval.
2. Company Incorporation.
Normally, the registration is done within 1-2 days, if the name approval and all the required documents are correctly done.