Setting up Subsidiary in Singapore
A business entity can choose to incorporate a Singapore company as a subsidiary. The business entity may refer to another limited company, a limited liability partnership or a non-profit organisation or charity. The business entity can hold the shares of the subsidiary as the sole shareholder. As a Singapore company, the subsidiary will have to comply with the statutory and disclosure requirements of the Companies Act.
Corporate Shareholders
A corporate shareholder is a business entity that owns shares in another limited company. The rights of a corporate shareholder are exactly the same as the rights of an individual shareholder. They are defined in the prescribed particulars attached to their shares. Like all shareholders, corporate shareholders enjoy limited liability for the company’s debts. They have to pay for the value of their shares when the company asks them to do so. That is the extent of their financial responsibility towards the company.
Having a corporate shareholder that is also an external investor can be advantageous particularly for new companies. The stability and expertise of an established business can help to create brand value. Being backed by a corporate shareholder may also make it easier to access favourable rates and payment terms from suppliers and manufacturers.
For more information on setting up a subsidiary, click here.
Processing Time
The application is usually processed within 1 day after the fee is paid.
It may take between 14 days to 2 months if the application needs to be referred to another agency for approval or review. For example, if the intention of the branch of a foreign company is to carry out activities involving the setting up of a private school, the application will be referred to the Ministry of Education. Please refer to Referral Authorities for more information.
You may commence business once the entity is registered with ACRA. However, depending on the business activity, you may need to apply for licence or approval from other government agencies. Visit the GoBusiness Licensing website for more information.
Transaction Fees
Name Application Fee $15
Registration Fee $300
How Bestar can Help
Bestar can be a valuable asset when setting up a subsidiary in Singapore. Here's how we can assist you:
Company Incorporation:
Streamlining the Registration Process: Bestar can handle the online registration with ACRA (Accounting and Corporate Regulatory Authority) via the BizFile+ portal. This includes ensuring all required information is accurate and complete, such as:
Subsidiary's name
Business activities
Shareholder details
Director details
Registered address
Company secretary details
Company constitution
Additional Services:
Nominee Director Services: If you lack a local resident director, Bestar can provide a qualified nominee director to fulfill this requirement.
Company Constitution Drafting: We can help draft a compliant company constitution outlining the subsidiary's governance structure and regulations.
Advice on Business Structure: We can advise on the most suitable business structure for your subsidiary, considering factors like tax implications and control requirements.
Ongoing Support:
Accounting and Bookkeeping: Bestar can manage your subsidiary's accounting needs, ensuring accurate financial records and compliance with Singapore's accounting standards.
Corporate Secretarial Services: We can handle ongoing secretarial duties like maintaining the company's statutory records, filing annual returns with ACRA, and convening meetings.
Tax Compliance: We can assist with tax filing and ensure your subsidiary adheres to Singapore's tax regulations.
Benefits of Using Bestar:
Expertise and Efficiency: Bestar has the experience and knowledge to navigate the incorporation process smoothly and efficiently.
Compliance Assurance: We can help ensure your subsidiary adheres to all legal and regulatory requirements.
Time Saving: We can handle administrative tasks, freeing you to focus on your core business operations.
Local Knowledge: We possess a deep understanding of Singapore's business environment and regulations.
By partnering with Bestar, you can ensure a smooth and compliant setup for your subsidiary in Singapore.
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