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Setting up a subsidiary company is one of the recommended options for foreign companies looking to establish their presence in Singapore. Find out more about the process of setting up a subsidiary company and the benefits that come with it.
Singapore's business legislation is favorable for foreign investors and they are also allowed to have 100% foreign ownership of companies they have set up. Taxes are low and there are no restrictions on repatriation of earnings and capital. This liberal regime attracts many foreign companies each year to set up their office in Singapore.
A Singapore subsidiary is a private limited company incorporated in Singapore and the majority shareholder is a corporate entity. The shareholding entity can be a local or a foreign company. A Singapore subsidiary is the most preferred form of business registration for small to medium size foreign companies who wants to establish their presence here.
This guide will provide foreign companies with details on setting up a subsidiary in Singapore. To learn about the different registration options available for foreign companies in Singapore, refer to foreign company registration options guide.
The following documents/information are generally required for the registration of a Singapore subsidiary:
All documents must be in English and any non-English documents must be translated into English. Any professional corporate services provider that you engage may require additional documents as applicable.
Foreign companies are required to use a professional corporate services firm to setup an entity in Singapore. Registration procedure for Singapore subsidiary companies can be done online and is a relatively quick process. There are two distinct steps involved in the Singapore subsidiary registration procedure: a) Name Approval and; b) Company Incorporation. Both steps can be accomplished in 1-2 days assuming all documents are ready and there are no delays in the name approval process.
Bank account can be opened with any one of the local or international banks present in Singapore. For details on bank account opening requirements, procedure, and timeline, refer to opening a corporate bank account guide.
Singapore subsidiary companies are considered tax residents in the eyes of the law. Therefore, they are eligible for tax benefits offered to Singapore tax residents. For information on corporate taxes in Singapore, see Singapore corporate tax guide.
A subsidiary being a locally incorporated entity, is subject to the same annual filing requirements as local companies. For more details, see annual filing requirements for Singapore companies
A Singapore subsidiary company is the recommended form of company setup for small to mid-size foreign companies wishing to establish a presence in Singapore. The parent company’s liabilities are limited and its assets remain protected. As the subsidiary company is treated as a resident company, it also enjoys tax benefits of Singapore as well as privileges arising out of Singapore’s tax treaties with other countries. The incorporation expenses are reasonable and the process is straightforward.
For additional information on subsidiary setup, refer to Singapore Subsidiary Setup FAQs.
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