If you have been planning to register an overseas company, it is important that you understand the best options that are at your disposal.
In this case, Singapore subsidiary company is the type of company that you should be thinking of registering. Why?
First, it is essential that you get to know the type of business entity in Singapore.
Singapore subsidiary company primarily refers to an organisation that is locally registered or incorporated.
In addition to this, the organisation would be a private limited company which major shareholders being either foreign or local company.
Among the many advantages, the mere fact that you would enjoy unparalleled foreign ownership should motivate you in incorporating this type of a company.
After the company has been registered completely, legally, it is considered as a local company.
This infers that it would enjoy the benefits that other local companies are entitled to e.g. tax exemptions.
What are some of the prerequisites you should know before incorporating a Singapore subsidiary company?
1. Name of the company
The name that you choose for the company does not necessarily have to be a similar name of the parent company.
However, the most important thing is that this name should be approved by ACRA.
Just like any other regulation process, this name should be unique, meaningful and most of all, it should not match with the name of any other existing company.
When these requirements are met, rest assured that the Singapore subsidiary company could have its name approved in a few hours.
2. Determining company directors
The board of directors should encompass at least one director that is locally based.
This person should be Singapore’s citizen, or an individual that holds Dependent Pass, employment pass or EntrePass.
Equally, an ideal director should be above the legal age of 18 years with a clean criminal record.
3. Shareholdings
As part of instigating the registration process, the name of the parent company abroad can be used in share ownership. The best part is that 100% ownership is possible.
4. Paid-Up Share Capital
S$1 is the minimum amount required as the paid-up capital.
Authorised capital is a term that is not recognised in Singapore when it comes to company registration. Please keep in mind that this figure can be raised at any time.
All companies registered in Singapore should have a physical address at the time of incorporation.
Owners can use business addresses or our registered office address service. Do note that P.O. Box address cannot be used.
6. Appointment of Company Secretary
To comply with the Singapore Companies Act Cap 50, engage professional company secretarial firm and appoint a company secretary for the company.
The named company secretary must be a Singapore citizen or Singapore permanent resident, above the legal age of 18 years old and holds the minimum professional qualification.
Important documents required during the subsidiary company registration process
A. Incorporation certificates of the parent company
B. Legally recognised declaration of compliance – popularly known as Form no. 6
C. Registrar of Companies notice indicating the company’s registered office address and any other essential particulars e.g. office hours – commonly known as Form 44
- Passport and residential details belonging to the directors of the company
- Form 49 – details regarding managers, list of directors, auditors and secretaries of the Subsidiary company
- Form 45 – consent that is signed by the proposed candidate to Act As Director
- Memorandum and articles of association
D. Steps to follow in Singapore subsidiary company registration
- Working to ensure that the company name is approved
- Submission of documents
- Company incorporation
Subsidiary company registration in Singapore is a simple as it sounds.
By following the above-mentioned steps, you will have your company registered in a matter of days.
Once you have fully registered the company, ACRA sends an email notification detailing the company registration number and other important details relating to your organisation.
In as much as the process might sound as a DIY task, it is recommended that you consult with the experts first.
This means that you would have to check with a company secretarial service team before trying things that you are not sure of.
This will guarantee that you make sound decisions that would impact your company in a positive way.
Should you need assistance or would like to find out more about Company Secretarial services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.