Any foreign enterprise expecting to establish a presence in the tax-friendly city of Singapore will find a Singapore subsidiary to be extremely beneficial. The parent organization enjoys the restrictions on financial obligations on its assets. Being essentially a local firm, the subsidiary company is entitled to all the tax benefits as well as tax treaties of Singapore. Singapore likewise provides incorporation fees which are comparatively affordable and the procedure is not difficult either. For this reason, the subsidiary company is going to be the ideal solution for the overseas organizations registering a company in Singapore.
Key points regarding Singapore Subsidiary
The parent company has the right to own 100% of the shareholding of the subsidiary in Singapore.
- Local Director
It is imperative for a Singapore subsidiary to designate a minimum of one director who will normally be a resident of Singapore, that is, a Singaporean Permanent Resident, a Singaporean Citizen, or at least an Employment Pass holder. The age of the company directors should be no less than 18 years and they mustn’t be charged with any malpractice or should not even be an undercharged insolvent. Once the subsidiary has become authorized, the foreign organizations that intend to transfer their personnel from head office to Singapore will be able to make an application for their employment pass. Sandhurst Consultancy happens to be a premier company registration expert who has the reputation of helping many local as well as international entrepreneurs in setting up a market presence by forming a company in Singapore. In case you’d like to get further information, please feel free to visit their website at e-sandhurst.com.
- Paid-up Capital
S$1 happens to be the minimal paid-up capital for a subsidiary company in Singapore. The parent organization may be the 100% shareholder. There isn’t any principle of authorized capital in Singapore.
- Local Enlisted Address
An authorized office in Singapore is a must for a Singapore subsidiary firm. The authorized address could be a home office or a commercial place of work (in case you are contemplating to rent one). The registered workplace happens to be the place where the statutory data of the subsidiary organization has to be maintained by you.
- Company Secretary
The directors ought to designate a natural individual as the company secretary after the incorporation and he or she must be a resident of Singapore.
Moreover, an auditor has to be employed within 3 months from the date of enrolment of the Singapore subsidiary business.
- Audited Accounts
It is imperative for a Singapore subsidiary to submit audited accounts with Singapore income tax professionals every year.
The subsequent documents are usually necessary for the enrolment of a Singapore subsidiary:
- Certification of incorporation of the parent organization.
- An extract from the Registrar showcasing the owners of the parent business as well as the present enlisted address.
- A company resolution permitting a particular person to sign essential subsidiary files for the parent organization.
- Residential address information as well as passport details of folks who will be representing the directors of the Singapore subsidiary organization.
- Authorized permission to work as director by each and every recommended director.
- The Singapore subsidiary firm’s enlisted address particulars.
- Memorandum and Articles of Association for the Singapore subsidiary organization.
It is imperative for each and every document to be in the English language and any non-English paperwork has to be converted into the English language whatsoever. Furthermore, supplemental paperwork as applicable might be required by any specialist company services provider employed by you.
Registration Process and Timeline
It is of prime importance for foreign businesses to make use of a specialist company service firm so as to establish an organization in Singapore. Although it will be possible to accomplish the registration process for Singapore subsidiary businesses on the Internet, the procedure happens to be a fairly simple one. There are a couple of unique steps involved with the Singapore subsidiary registration process: a) Authorization of Name and; b) Company Incorporation. Each of these steps may be completed within a couple of days presuming that there aren’t any unwanted delays in the name authorization procedure with all paperwork ready.
Bank Account Opening
It is important to open a bank account with any regional or global bank already existing in Singapore. Seek advice from any opening a company bank account guide so as to get further information on bank account opening specifications, timeline, as well as process.
Taxation of Singapore Subsidiary
Singapore subsidiary businesses are regarded as tax citizens in the eyes of the legislation. Consequently, they’re entitled to tax benefits which are also provided to the Singapore tax residents. Look at the Singapore corporate tax manual for further details on corporate taxes in Singapore.
Annual Filing Specifications
Being a domestically incorporated business a subsidiary is governed by the identical annual filing specifications just like the regional organizations. Look at the annual filing specifications for Singapore organizations so as to get further information.
Below, we have mentioned a step-by-step guide to form a subsidiary company.
Step 1 – Select a name for the company. It can be either similar or different from that of the parent organization.
Step 2 – Make use of SSIC 2010 so as to select a brief description of the business pursuits.
Step 3 – Set up a shareholders contract and determine the shareholding structure.
Step 4 – Finalize the particulars of the company directors, shareholders, as well as the regional workplace address of the company.
Step 5 – Designate a Corporate Secretary.
Step 6 – Finalize the MAA (Memorandum and Articles of Association).
Step 7 – Designate an auditor. (This has to be completed within 90 days of incorporation)
Step 8 – Following the incorporation, it will be feasible to obtain the subsidiary’s incorporation certification, business profile, first board resolution, and share certification along with a bank account opening resolution.
Step 9 – Open a bank account.
Step 10 – You might likewise want to obtain the company stamp as well as the company seal created for the subsidiary.
Any business set up for small as well as mid-size overseas firms wanting to create a presence in Singapore should opt for a subsidiary organization in the city. The parent organization’s assets continue to be shielded and its liabilities are restricted as well. The subsidiary firm enjoys the tax rewards of Singapore along with benefits arising from Singapore’s tax treaties with other nations around the world given that it is treated as a resident organization. The procedure is uncomplicated plus the incorporation costs are likewise acceptable at the same time.