Subsidiary Setup with Relocation Package
A foreign Subsidiary Company in Singapore is a locally incorporated limited liability company with which the majority of shares are held by the foreign company.
If you wish to set up a Subsidiary Company and relocate a staff member to Singapore, you will need to do the following:
- Incorporate a Subsidiary Company
- Obtain an Employment Pass for the staff member who is relocating to Singapore. The Employment Pass application can only be filed only after registration of the Subsidiary Company.
Features of a Subsidiary
- It is incorporated as a limited liability company, hence has a distinct legal identity.
- The foreign company’s liability is limited to the value of the shares it subscribes into the subsidiary.
- The foreign parent company may own 100% of the subsidiary.
- A subsidiary company, with at least one individual shareholder with minimum of 10 percent shareholding, is entitled to local tax incentives. New start-up companies Pay Zero tax on the first S$100,000 of chargeable income for the first three consecutive years. A further 50% exemption is given on the next S$200,000 of the chargeable income.
Summary of Setup Requirements for Singapore Subsidiary
- Minimum 1 Shareholder + 1 Resident Director + 1 Company Secretary
- Minimum initial paid-up capital is S$1
- A Singapore registered office address
Notes
If you are a foreign company that plans to incorporate a company and to relocate staff members to Singapore, you will need to do the following:
- Engage Asiabiz Services to incorporate your Singapore Subsidiary Company. Singapore Companies Act requires a director who must be a Singapore resident. You will need to find a Singapore resident director or engage our Nominee Director Service with which we can provide you with a nominee director on a temporary basis until you have secure an Employemnt Pass and a residential address in Singapore.
- Apply for Employment Pass for your staff member.
- Transfer of directorship upon securing the Employment Pass.
- Staff member relocate to Singapore and start running the Subsidiary Company.
Registration of Subsidiary Company and Employment Pass application can be processed without you having to be in Singapore.
Setting up a Subsidiary Company
A Singapore Subsidiary Company is essentially a Singapore-incorporated Private Limited Company with a local or foreign corporate entity as a major shareholder. It’s also the most popular business structure among small- to medium-sized foreign companies who want to establish a presence in Singapore.
100% foreign ownership is allowed for Singapore Subsidiary Companies. They are entitled to the tax exemption of paying no tax on the first S$100,000 of chargeable income for its first three consecutive years. A further 50% tax exemption is given on its next S$200,000 of chargeable income.
Singapore Subsidiary Companies also enjoy no restrictions on repatriation of earnings and capital. This liberal business legislation attracts thousands of foreign companies each year to set up companies in Singapore.
Features At-a-Glance
- Incorporated as a limited liability company
- Has a distinct legal identity
- Foreign parent company’s liability is limited to the value of the shares it subscribes into the subsidiary
- Foreign parent company may own 100% of the subsidiary
- Tax incentives with at least one individual shareholder with minimum 10 percent shareholding
- Can have a maximum number of 50 shareholders
- Required to audit accounts and file audit reports
Setup Requirements for a Singapore Subsidiary
- Must appoint at least one director who is either a Singaporean Citizen, a Singaporean Permanent Resident, or an Employment Pass holder with a residential address in Singapore
- Directors must be at least 18 years of age and must not be an un-discharged bankrupt, or convicted for any malpractices
- Required to apply employment pass for any foreign staff relocating to Singapore
- Minimum paid-up capital of S$1
- A Singapore subsidiary must have a registered office in Singapore
- Required to appoint a natural person who is a Singapore resident as company secretary within six months of the incorporation
- An auditor must be appointed within three months of the Singapore subsidiary registration
- Required to file audited accounts annually with Singapore income tax authorities
Documents required for a Subsidiary Company
- A certificate of incorporation of the parent company
- An extract from the Registrar of Companies showing the current registered address and directors of the parent company
- A corporate resolution authorising a specific individual to sign necessary subsidiary documents on behalf of the parent company
- Passport particulars and residential address details of individuals who will act as the directors of the Singapore subsidiary
- Signed Consent to Act As Director by each proposed director
- Registered address details for the Singapore subsidiary
- Memorandum & Articles of Association for the Singapore subsidiary
All documents must be in English and any non-English documents must be translated into English.
Registration Procedure and Timeline
How AsiaBiz can help you: All foreign companies are required to engage a professional service agent to assist in the registration and incorporation of their subsidiaries. AsiaBiz offers a quick, seamless and innovative package that begins with the registration of the business name followed by the company incorporation of your Singapore Subsidiary Company in just one day.
The Ministry of Manpower grants work visa known as Employment Pass (EP) and each EP has with a validity of 1 or 2 years, that is renewable as long as the pass holder remains employed with the company. With an EP, you can travel in and out of Singapore with minimum hassle at the immigration. As an EP holder, you are also eligible to apply for permanent residency in Singapore.
You can apply for Singapore Employment Pass (EP) work visa, if:
- You are a foreign Entrepreneur, professional, managing director of Singapore companies who wish to relocate to Singapore to manage your company operations;
- You are a locally incorporated Singapore Company and need to hire foreign employees;
- You have an Employment offer from a prospective Singapore employer. In this case, you will need the company to apply the employment pass application on your behalf;
Employment Pass Eligibility Requirements
To be considered for an EP, you must have a minimum fixed monthly salary of S$3,000 and possess one or more of the following:
- Recognised educational diploma/degree
- Professional qualifications
- Specialist skills
Your application is evaluated by the Ministry of Manpower based on your merits. There are also other factors that may affect your application, such as:
- Salary
- Age
- Roles & responsibility
- Related work experience
- Company’s background
- Company’s paid up capital
- Current citizenship
A recognised educational qualification does not guarantee a successful EP application. You’ll also need to satisfy other criteria such as relevant work experience and/or professional skills. Similarly, an applicant without a recognised educational qualification may not necessarily be rejected for EP if he has other compensating factors.
Documents Required for Employment Pass (EP)
We will need the following documents for submission of Employment Pass visa application in Singapore:
- Resume or CV stating your educational and employment history
- Copies of educational certificates and past employment testimonials
- A copy of your passport details
Any documents that are not in English must be translated into English by an official translation service.
Pass Types
There are three categories of Employment Pass: P1, P2 and Q1 Pass. The P Pass is for foreigners seeking managerial, executive or specialist jobs. The EP does not fall under any quota system nor is there a monthly levy charge for EP.
- P1 Pass
For applicants earning a fixed monthly salary of at least S$8,000. - P2 Pass
For applicants earning a fixed monthly salary of at least S$4,500 and he/she possesses recognised qualifications. - Q1 Pass
For applicants earning a fixed monthly salary of at least S$3,000 and if he/she possesses recognised qualifications.
Employment Pass Eligibility Summary Table
| Pass Type | Factor One | Factor Two | Factor Three |
|---|---|---|---|
| P1 | Fixed monthly salary > S$8,000 |
Professional, Managerial, Executive, Specialist jobs | |
| P2 | Fixed monthly salary > S$4,500 |
Professional, Managerial, Executive, Specialist jobs | Recognised qualifications |
| Q1 | Fixed monthly salary > S$3,000 |
Recognised qualifications | In lieu of recognised qualifications, MOM may also consider compensatory factors such as skills and years of experience (it recommends a minimum of 5 years relevant work experience) |
Procedure and Timeline
We can apply for your EP in 3 Simple Steps. We submit all Employment Pass applications electronically to Ministry of Manpower as the application process is shorter. This means you will also learn about the outcome of your application sooner.
STEP 1
We shall apply for authorisation code required to submit EP applications online for newly incorporated company. It takes 7-14 days for Ministry of Manpower to send the authorisation code.
STEP 2
Once we obtained the authorisation code, your EP application will be submitted online. The Ministry of Manpower takes between 1-15 days to issue an approval.
STEP 3
Once the application is approved, the Ministry of Manpower will issue an In-Principle Approval (IPA) letter via email. The IPA letter must be produced upon collection of the EP at the Work Pass Division at Ministry of Manpower. An IPA letter is valid for Six months from the date of notification of approval.
To collect your EP you’ll need to bring:
- A copy of the IPA letter
- Recently taken passport size photograph
- Original passport with the entry embarkation cards
- Medical exam report* (if the In-Principle Approval states that you require one)
- Any other documents that are requested in the approval letter
* You can get a medical examination done in your own country through an established clinic/hospital or in Singapore. Most clinics in Singapore can provide medical examination and report within a day.
Employment Pass Validity
- Validity period for first-time applicants is up to two years
- Validity for EP renewals is up to three years
Entry Visa into Singapore
If you are overseas and require an entry visa to Singapore, your IPA letter will include a single journey entry visa. Upon your arrival in Singapore, we will make an appointment with Ministry of Manpower on your behalf for finger printing. Your pass will be ready in 4 days after you complete the procedures.
You may collect the pass at Ministry of Manpower personally or authorise AsiaBiz to collect it on your behalf.
Rejection of Employment Pass Application
In the event that your Employment Pass application is rejected, AsiaBiz shall lodge an inquiry with the Ministry of Manpower. Based on the reasons provided by the Ministry, we will submit an appeal that will address the issues outlined by the government body and also include all additional documents, if any, that they request for. The Ministry of Manpower will take a minimum of three weeks or more to review your appeal.
Change of Employer
You must apply for a new pass whenever you change employers. There is no need to cancel the existing pass before applying for a new pass. The Ministry of Manpower evaluates each application for a new pass based the applicant’s qualifications, work experience, and employer credentials. Once the new pass is approved, you shall have to arrange for the old pass to be cancelled by your old employer issuing a letter requesting the same.
Renewal of Employment Pass
The Ministry of Manpower will send an Employment Pass Renewal Form to your employer two months before your EP expires. You should submit the renewal application at least 4 weeks prior to the expiration of your EP. Upon approval, your employer will receive a letter of notification and your new pass is ready for pick up at the Ministry of Manpower.
Permanent Residence Eligibility
EP holders of P1, P2 and Q status are eligible to apply to become a Permanent Resident through the Professional, Technical & Skilled Workers scheme. There is no designated waiting period but one of the documents required is 6 months of salary record, therefore you should plan your application at least 6 months ahead. However, it is advisable for Q1 pass holders to wait at least 2 years before applying for permanent residency.
Passes for Family Members
All Employment Pass holders can apply for Dependant Pass and/or Long-Term Visit Pass for their family members.
| Pass type granted to EP holder | Dependant Pass | Long-term Visa Pass |
| P Pass type | Yes for
|
Yes for
|
| Q1 Pass Type | Yes for
|
No |
Other Options
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