Singapore
Subsidiary Company

A subsidiary company is a locally incorporated limited liability company where, majority of shares are held by the foreign company. For Tax purposes the Singapore subsidiary is treated as a resident company.

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Singapore maintains an open door policy for foreign companies that wish to set up operations in Singapore. Foreign companies are allowed 100% ownership as well as repatriation of capital and earnings. A subsidiary of a foreign company is considered a resident company, and therefore is entitled to tax exemptions and incentives as other locally incorporated companies in Singapore.

Tax Benefits

A subsidiary company, with at least one individual shareholder with minimum of 10 percent shareholding, is entitled to local tax and development incentives. In other words, it is given the same tax exemptions as a newly incorporated startup company in Singapore.It is entitled to the tax exemption of Zero tax on the first S$100,000 of chargeable income for its first three consecutive years. A further 50% exemption is given on the next S$200,000 of chargeable income.

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 and development incentives

Summary of Setup Requirements for Singapore Subsidiary

  • Minimum 1 Shareholder + 1 Director + 1 Company Secretary
  • Shareholders may be corporations or individuals
  • Company Secretary has to be Singapore resident
  • Minimum initial paid-up share capital is S$1
  • Singapore Company must have a Singapore registered office address
  • Singapore Companies Act requires a minimum of one Director who must be a resident of Singapore: Singapore citizen or permanent resident/ Singapore Employment Pass holder (If necessary, we can act as your company’s local Nominee Director for a fee)

Documents Required for Singapore Subsidiary Registration

For the purpose of company registration in Singapore, the following information is required:

  • Company Name
  • Brief Description of Business Activities
  • Shareholders Particulars
  • Directors Particulars
  • Registered Address

Subsidiary Registration Procedure and Timeline

At Asiabiz, the incorporation process is done through a fast and streamlined computerized system that generates all Singapore company incorporation documents expediently and efficiently. AsiaBiz can incorporate a company within 1-2 hours as long as all pertinent information, documents and required approvals are in place.