Benefits of Setting Up a Subsidiary in Singapore
- 100% Foreign Ownership: Unlike many countries, Singapore allows full foreign ownership of companies, giving you complete control over your subsidiary.
- Tax Incentives: Subsidiaries are eligible for Singapore’s tax exemptions and benefits, making it an ideal location for cost-effective business expansion.
- Strategic Location: Located in the heart of Asia, Singapore serves as a gateway to the rapidly growing markets of Southeast Asia and beyond.
- Ease of Doing Business: With a pro-business environment and straightforward regulatory requirements, Singapore consistently ranks among the top places for ease of doing business globally.
Steps to Setting Up a Subsidiary in Singapore
1. Choose a Company Name: The subsidiary’s name must be approved by the Accounting and Corporate Regulatory Authority (ACRA). The name should be unique, meaningful, and not identical to existing companies.
2. Appoint Directors and Shareholders: At least one director must be a Singapore resident, such as a Singapore citizen, permanent resident, or a holder of an EntrePass or Employment Pass. The subsidiary can be wholly owned by the parent company, which will be the shareholder.
3. Determine Paid-Up Capital: The minimum paid-up capital required is SGD $1. However, higher capital can be allocated based on business needs.
4. Register a Local Office Address: Your subsidiary must have a physical office address in Singapore, which cannot be a P.O. Box. This address will be used for all official correspondence.
5. Appoint a Company Secretary: Within six months of incorporation, you must appoint a company secretary who is a resident of Singapore.
6. Submit Required Documents: Necessary documents include the parent company’s certificate of incorporation, identification and residential address of directors, and other statutory forms.
7. Incorporation with ACRA: Once all the documents are ready and the necessary appointments made, the subsidiary can be incorporated with ACRA. The process typically takes 1-2 business days.
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Frequently Asked Questions
What is the minimum paid-up capital required for a subsidiary in Singapore?
The minimum paid-up capital required is SGD $1, though you can increase this amount based on your business needs.
Can a foreigner be a director of a Singapore subsidiary?
Yes, but at least one director must be a Singapore resident (citizen, permanent resident, or an approved pass holder).
How long does it take to set up a subsidiary in Singapore?
The incorporation process typically takes 1-2 business days once all required documents are submitted.
Do I need a local office address in Singapore?
Yes, all companies must have a physical office address in Singapore, which will be used for official correspondence.
What are the ongoing compliance requirements after incorporation?
You will need to appoint a company secretary, file annual returns, maintain proper accounting records, and comply with tax regulations.
