A Singapore subsidiary company is a private limited company
formed in Singapore whose majority shareholder is a corporate entity. Any
individual local or foreign can incorporate a subsidiary company in Singapore.
However, Singapore subsidiary is the most popular choice of company formation
among small to medium size foreign companies for establishing their business
presence in the nation. One of the key reasons what makes subsidiary company
more popular is that Singapore subsidiary can be wholly owned by foreign
shareholders and it is considered a separate legal entity from the parent
company.
Other than subsidiary company, a foreign business company
can choose for other two forms of business entities such as:
· Singapore
Branch Office: It is essentially an extension of parent company and
does not constitute any separate legal entity.
· Representative
Office in Singapore: Representative office is just a temporary
administrative arrangement and it is not allowed to undertake business
operations that generate income. This form of company is established by a
parent company only to assess business opportunity in the market.
Benefits earned by a foreign company while incorporating
a Singapore Subsidiary company are
· 100
% foreign ownership (shareholding)
· No
restrictions on the repatriation of profits
· Minimum
share capital for incorporation is only S$1
· Tax
exemption scheme for start-up companies (conditions apply)
· Quick
and easy process of business registration (takes only a day or two)
· Simple
company name approval process (completed within a day)
· A
Singapore residential address can also be shown as a registered address for
company registration. It is not mandatory to rent an office for this purpose.
Basic requirements for Singapore subsidiary company
incorporation are:
· A
subsidiary company in Singapore must appoint a local individual director who is
ordinarily a Singapore permanent resident, Singapore citizen, or EntrePass holder. The person should be above 18 years with no previous record of criminal
offense and bankruptcy.
· Minimum
Paid-up capital of S$1
· At
least one shareholder is required to incorporate a company and number can
exceed up to 20. 100% foreign shareholder is allowed.
· One
registered address. PO Box address is not accepted.
· Appointment
of a professional company secretary within 6 months of incorporation of the
company is mandatory.
Subsidiary company is ideal choice for small to medium size
business companies worldwide that are looking for excellent opportunities to
expand their business into Asia or world. Availing assistance of a professional
company registration firm has proved to be a wise decision for you as an
experienced consultant will ensure smooth functioning of registration process
and they can guide you on the most suitable business strategies to meet the
objective of your business.
SBS Consulting, Singapore’s leading company registration firm, provides wide array of services related to company incorporation in
Singapore. The group has done exceptionally well in offering guidance and
support to worldwide business entrepreneurs all along the way of company
incorporation and its operations.
