A Singapore Subsidiary of a foreign company is a locally incorporated company with the shareholders being the foreign company. As such its a separate legal entity and distinct from its parent company.
Key Characteristics of a Singapore Subsidiary
The foreign entity can hold 100% shares of its Singapore Subsidiary Company.
At least one of the directors of the Singapore Subsidiary must be a local resident director.
Each Singapore Subsidiary must appoint a local resident qualified company secretary.
Any overseas staff planning to work for the Subsidiary Company in Singapore will need to obtain an employment pass.
A Singapore Subsidiary needs to file annual audited accounts with authorities.
The requirements and procedures for registering a Singapore Subsidiary of a foreign company are mostly the same as registering a new company in Singapore. The only difference being that in case of a Singapore Subsidiary, the shareholder happens to be the foreign company. Therefore for further details, please refer to Singapore Company Registration page.
Singapore has a minimum of business formalities for establishing a business and favors foreign investment. There are no exchange controls or restrictions on the introduction of capital or the repatriation of capital and profits and there are no currency regulations.
A Singapore Subsidiary can be formed quickly and easily. The corporate tax rates in Singapore are low in comparison with many of the other developed countries. Singapore has double taxation agreements with many other countries.
A Singapore Subsidiary is required to keep its accounting and other records that will sufficiently explain the transactions and financial position of the company and enable true and fair profit and loss accounts and balance sheets to be prepared. If such records are kept in a place outside Singapore, copies must be kept in Singapore.
The Singapore Companies Act requires that a company name must be approved before the company can be registered.
It's company's responsibility to update Accounting and Corporate Regulatory Authority (ACRA) of any changes in its registered particulars e.g. change of company name, registered office address, change of directors, other officers, etc.
A Singapore Subsidiary cannot start to trade until it has been successfully registered with ACRA.
Any foreigner who is not a Singapore permanent resident and plans to work for a Singapore company is required to apply for an Employment Pass.
