Singapore Subsidiary Company Registration

Last modified: December 11, 2015

Singapore-Subsidiary-Company-Registration

The foreign corporate, especially those that fall in small and mid-level business category come to Singapore to establish their Singapore company setup. Registering a subsidiary company allows them to extend their business operations and be closer to the emerging markets of Asia. ACRA (the Accounting and Corporate Regulatory Authority) advises to the foreigners to appoint a top-grade Singapore incorporation services for the task.

A Brief Introduction to Singapore Subsidiary Company

Incorporating a subsidiary company in Singapore is very beneficial to the foreign corporate. The subsidiary company is considered as a locally registered business. Such a business entity, being a tax resident of Singapore, qualifies for the tax exemptions, rebates, and incentives that the Singapore tax authorities announce from time-to-time. Singapore subsidiary inherits its characteristics from the Limited Liability Company.

A subsidiary’s debts and losses incurred during its business activities are its own responsibilities. It is a dynamic business structure having the potential to scale according to the increased needs of a growing business. Singapore’s Company Law looks upon it as a legal and completely separate business entity from its foreign-registered parent company.

Registering a Singapore Subsidiary Company

  • Shareholder: Singapore allows the foreign corporate to completely own their subsidiary company. Foreign corporate choose this business structure for the limited liability it confers to the company’s shareholders. It limits their liability to the amount of money they have invested in buying the shares of the company. Both, the local as well as foreign corporate can hold shares of a subsidiary company.
  • Name of Subsidiary Company: In Singapore, ACRA, the Company Registrar, determines the validity of the company names. It expects such names to be unique and confirming with the guidelines. One can login into the BizFile portal to determine the availability of the name and get approval for it.
  • Company Director: Each company in Singapore must hire a local resident director. The individual appointed can be Singaporean, permanent resident or the employment pass, EntrePass, or Dependent Pass holder.
  • Paid-Up Capital: The minimum paid-up required to Setup Company in Singapore is S$1. After the company registration, the shareholders can increase the amount of capital at any time.
  • Local Registered Office Address: At the time of registration, the business owners must supply a local registered office address. It is also stipulated that it should be accessible to the investors and the public during office hours. The authorities do not consider a P.O. Box address as a valid address for the company incorporation.
  • Corporate Secretary: It is mandatory for the Singapore companies to hire at least one competent company secretary. The professional should be experienced enough to handle the task and maintain the company’s statutory compliance to an optimum level.

Documents for Subsidiary Company Registration

  • A certificate of incorporation of the foreign-registered parent company
  • Statutory declaration of compliance (Form No 6)
  • A notice from the Registrar of Companies depicting the address of registered office, office hours, and particulars of any changes (Form 44)
  • Particulars of directors like passport and residential address proofs
  • Details of the company secretaries, managers, and auditors (Form 49)
  • Signed Consent to Act as Director (Form 45)
  • Memorandum & Articles of Association of the new company

Singapore Business Incorporation Process

There are only two procedures in the Singapore business incorporation process; a) selecting an appropriate name for the proposed company and applying to ACRA for its approval and; b) Applying to ACRA for the company registration. ACRA has the right to reject a name if the officials think it is not suitable or if it violates the norms in place.

Normally, it takes only 1 – 3 days for the Singapore company incorporation. After registering a company, the ACRA sends an e-mail notification to the owner or the appointed Singapore incorporation service. In Singapore, such an email is valid as a Certificate of Incorporation. It contains the company registration number or Unique Entity Number (UEN), company name, and other incorporation details.

The foreign corporate needs to take assistance from a company incorporation services provider, like SG Company Incorporation. Because a SingPass ID is necessary to login into the BizFile portal before one can apply to the ACRA for name approval and company registration.