A subsidiary company is a company which is completely or partly owned and wholly controlled by another company, which owns more than half of the subsidiary’s stock. It can be a company, corporation or a limited liability company. The entity which controls it, is called the parent company.
From small size to mid-size foreign companies, which would like to setup their presence in Singapore, is recommended for choosing a Singapore subsidiary. The parent company’s liabilities are limited and its assets remain protected.
Features of Subsidiary Company
- A separate legal entity from the parent company.
- The Shareholder can be a local or a foreign company.
- The major shareholder is corporate entity.
- 100% of foreign ownership is allowed, so it is a positive investment for foreign investors for their presence in Singapore.
- Parent company can own 100% of the Singapore subsidiary shareholding.
- One local director must be appointed who may be either a Singapore Citizen, a Singapore Permanent Resident (SPR) or an Employment Pass (EP) Holder, who should be at least 18 years old.
- Minimum paid-up capital required is only SGD1.
- A local registered office address where the statutory records of the subsidiary company is maintained.
- Director must appoint a company secretary who ordinarily should reside in Singapore.
- An Auditor should be appointed within 3 months from formation of the Singapore subsidiary company.
- The audited accounts must be filed with the Singapore Income Tax Authorities annually.
- The same tax benefits is allowed same as the local company since it is treated as a local resident company.
Documents required for Subsidiary Company
- Parent company’s Incorporation Certificate.
- An extract from the Registrar of companies displaying the parent company’s registered address and the directors.
- Passport details and residential address of the directors.
- Signatory approval from the directors for the appointment of directors for Singapore subsidiary.
- Registered address of the Company in Singapore.
- Constitution of the subsidiary company.