Foreign Entities Can Start a Subsidiary Company in Singapore to Make Their Presence Felt In Southeast Asia
The persistent efforts by Singapore during its post-independence era helped it transform its economic identity. Today this tiny nation is enjoying the rich dividends for then efforts. As of now, Singapore is not just an economic powerhouse, but also a huge potential market for foreign investors and businesses.
The success that the country has accomplished can be measured from the fact that the World Bank in its Doing Business Report has ranked Singapore as the ‘best nation for doing business’ for more than eight years in a row. Singapore is therefore rightly termed as the business hub of Asia and the world.
What You Need to Know About Singapore Company Registration
Are you interested to tap the Asian market? Yes! Then the best way to achieve your motive is by incorporating a company in Singapore. The progressive regime of Singapore has ensured that corporate policies they implement for Singapore company formation are flexible and convenient enough for foreign entrepreneurs. Undoubtedly, the Singapore company registration process is one of the simplest and fastest procedures in the world. Entrepreneurs or international corporations interested to form a company in Singapore have different options in business entities to register their businesses. Some of the most prolific options are incorporating a Branch office, Private Limited Company, Representative office, a sole-proprietorship, and foreign companies can prefer setting up a Subsidiary company in Singapore.
The Preferred Business Entity in Singapore
As of now, many entrepreneurs, local or foreigners prefer to incorporate a limited liability company (commonly referred to as a private limited company). Due to the immense benefits in terms of legal status, limited liability, transfer of ownership, tax and other rewards; forming an LLC has become the hottest incorporation trend in Singapore. In order to fully avail these tax and other parallel benefits, it is necessary that you register your Singapore business as a private limited company. However, if a foreign company wants to get hands-on experience in the Singapore market, it should incorporate a company in Singapore in the form of a Representative Office (RO). RO is meant for market research and assessment of the business potential of a marketplace. Otherwise, setting up subsidiary company is also a better option allowing you 100% foreign ownership and access to the Singapore tax regime.
Registering a Subsidiary Company in Singapore: The Best Option For Foreigners
Any foreign individual or a foreign business entity interested in gaining impartial access to Asia-Pacific market is advised to Setup company in Singapore either in the form of a branch office, as a subsidiary company or as a representative office.However, the subsidiary is the best choice as it offers various tax and operational benefits. The most important advantage is that the assets of the parent company are always safeguarded against any kind of liability, debt or losses incurred by the subsidiary. Additionally, a subsidiary is treated as the local tax resident of Singapore and, therefore, is entitled to tax benefits available to local companies.
Benefits Accessible After Accomplishing Singapore company Registration as a Subsidiary Company
- A Singapore subsidiary is a private limited company having a foreign business entity as its major shareholder.
- A foreign company is allowed to wholly own a subsidiary company in Singapore. Thus, even after having 100% ownership in the Singapore incorporated subsidiary company the same is bestowed with a separate legal status from that of the parent company.
- To complete the registration of a Singapore Subsidiary company,it is expected from them to appoint at least one director who happens to be above 18 years of age and should be an ordinarily resident in Singapore. By ordinary resident means, a Singapore citizen, A Singaporean Permanent Resident or a holder of Employment Pass. Additionally, the appointed director should not have any malicious past or bankruptcy record.
- The minimum paid-up capital for registering a subsidiary company is S$1. The parent company can be the 100% shareholder. There is no concept of like, authorized capital in Singapore.
- The company must have a registered office address. The address can be a physical official or residential address. You are not allowed to use the office address of your parent company as the registered address of your Singapore subsidiary.
- All Subsidiary companies in Singapore must get their proposed company name approved from the Company Registrar of ACRA before proceeding for company registration. The process of company name approval is very simple and requires hardly an hour to complete as long as the company name does not infringe on any copyright issues. The name has to be unique, decent and meaningful and cannot contain any word deemed as vulgar or offensive.
Foreign companies are necessarily required to use a third-party service vendor to set up a company in Singapore. Accounting services like SBS Consulting has the experience and expertise that you can count on. The firm offers end-to-end Singapore business incorporation services. Contact us on +65 6536 0036 or email us on info@sbsgroup.com.sg, for further assistance.
