Singapore Subsidiary Company - A Popular Choice for Foreigners

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)

·         Low-tax incentives of a Singapore resident company

·         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.