subject: Singapore Subsidiary Company: Seven Things You Should Know Before Incorporation [print this page] Private limited company, also called "private company limited by shares" is the most popular type of company to be incorporated in Singapore. A subsidiary company in Singapore is classified as an incorporated private limited company. It usually consists of shareholders with limited liability and its shares are not available to the general public. It is also registered with Accounting & Corporate Regulatory Authority (ACRA) in accordance to the Singapore Companies Act.
There are various benefits given to a newly incorporated subsidiary company including the beneficial tax benefits. However, before enjoying such benefits it is necessary to be knowledgeable on the requirements and guidelines before incorporation.
These are the seven things you should know before incorporation:
1. Company name: The company name should be unique and desirable in order to pass the approval of Accounting & Corporate Regulatory Authority (ACRA). A registered company name is needed before incorporation.
2. Shareholders: It is required to have at least one corporate or individual shareholding. A Singapore Private Limited Company can have a maximum of 50 shareholders which details will be available in public records. A combination of local and foreign shareholding or 100% local or foreign shareholding is allowed.
3. Resident Directors: It is required to have at least one director who must be a resident or citizen of Singapore, a Singapore permanent resident or a person who hold an Employment Pass/Entrepass or a Dependants' Pass with a residential address in Singapore. A Singapore Private Limited Company can appoint additional local or foreign directors. The director must be at least 18 years of age, and must not be bankrupt or convicted for any criminal malpractice in the past. Information of the directors will appear on public records. Directors can also be shareholders or vice versa.
4. Company Secretary: It is required that the company secretary is an "ordinarily" resident in Singapore. Singapore Companies Act requires companies to each appoint a company secretary within six month of incorporation.
5. Share Capital/Paid-up Capital: The minimum paid-up capital for registration of a Singapore company is S$1 or its equivalent in any currencies. The minimum issued capital is one share of par value. "Bearer" shares or "No par value" shares are not permitted. The Share or paid-up capital can be increased anytime after incorporation of the company.
6. Registered Address: It is required to have a registered office address. The registered address must be a physical address and cannot be a PO Box. Use of residential address is allowed for certain types of business.
7. Memorandum and Articles of Association: Memorandum and Articles of Association must be lodged with Accounting & Corporate Regulatory Authority (ACRA).
Singapore Subsidiary Company: Seven Things You Should Know Before Incorporation
