A company in Singapore can be completely owned by a foreign one and will also be considered a separate legal body. The liability of the parent company is only limited to its share capital in the organization along with the assets which are safe from debts and obligations. In addition, the child company will be considered a local one in the country which in turn entitles it to all of the tax benefits that local companies enjoy.
The process of incorporating a subsidiary is quite similar to doing the same for a private limited one so the key requirements are almost the same. These include:
- The appointment of at least one director who is a resident of the country i.e. either a permanent one or one who holds an employment pass. They need to be at least 18 years of age to hold this position and should not have a bankruptcy in their work history or a malpractice.
- A subsidiary needs to apply for a local registered address in the country. It can belong to a commercial office or a home one and should be the place where the statuary records are kept.
- The company has to have a secretary after incorporation which is the responsibility of the appointed directors.
- Within three months, an auditor should also be appointed and the subsidiary has to file his accounts yearly with the country’s tax authorities.
You will also need the following documents to establish and register your business subsidiary in Singapore:
- A certificate proving that the subsidiary is part of the parent company it originated from
- The current address of the company along with the names of its appointed directors in the form of an extract from the Registrar of Companies.
- Particulars of the passport along with residential address of the people who will be appointed as resident directors of the business subsidiary. This includes their signed consent regarding their duties.
- The registered complete address of the company
- Articles of Association and Memorandum pertaining to the subsidiary
Please be advised that although the company will be based in Singapore, all of the documents need to be in English and you will have to translate those that are not. In addition, your service provider may ask for more documents besides these ones during the incorporation process. However, you will need help from special services to take care of two critical steps during the registration process: 1) Name approval and 2) Incorporation. These can be completed in less than 3 days of the above mentioned documentation is ready and your service provider does not face delays during the approval process.
Bank Account and Annual Filing
You can open a bank account for the subsidiary in any of the international banks in the country. Since the company will be locally based, it will be subjected to the same yearly filing requirements as local ones.