subject: Setting Up A Subsidiary Company In Singapore [print this page] Companies are always looking to expand its reach and develop the business while attempting to corner a bigger share of the market. The best way to expand operations would be to create a business presence in different territories, thereby generating new revenue and creating a relationship with new customers. Foreign companies may gain entry into the Singaporean market by creating a Subsidiary Company, a Branch Office or a Representative Office.
No matter what type of business entity a firm chooses to establish, companies have the option of relocating to Singapore or running company operations from abroad. For businesses that choose the former, obtaining an Employment Pass for management staff would be required.
According to Singapore business laws, a subsidiary is an incorporated private limited company that has the majority of its shares held by a foreign or local corporation. Business registration specialist Asiabiz said that a Subsidiary Company in the country is considered a resident company. For instance, a newly incorporated Subsidiary Company, provided that it has at least one individual shareholder and a minimum of 10% shareholding, is eligible for tax exemptions that require a payment of zero dollars for the first S$100,000 of chargeable income.
Options for Subsidiary Setup
There are two options for setting up a subsidiary company in Singapore. The first option involves relocation of staff. A company that will relocate its staff to the country must accomplish two tasks, according to Asiabiz. A business must be incorporated as a Subsidiary Company and it also must obtain an Employment Pass. The requirements must be accomplished in that order. An Employment Pass application can only be filed the incorporation of the Subsidiary Company.
The other option would be setting up a Subsidiary Company without relocation of staff. Companies that opt for this set-up are required, however, to name a local resident director when incorporating a company. Rivkin offers a Nominee Director Service to answer the requirement.
