Setting up Subsidiary
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.
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.
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.
Name Application Fee $15
Registration Fee $300
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You are advised to engage a registered filing agent (e.g. Bestar accounting and corporate secretarial firm) to submit an application to set up a subsidiary of a company on your behalf. Contact us now.