Establish a Subsidiary Company in Singapore – One of the World’s Best Cities to Do Business, Live and Visit
Looking at the increasing trend of Singapore Company Registration, it is clear that people choose inclusiveness, as modern entrepreneurs are interested to witness their businesses foster in an all inclusive society like Singapore. Do you also think the same way?
Singapore definitely has some tremendous financial achievements in its stride. Despite being a nation, smaller in size compared to Manhattan, Singapore is constantly present in the charts of top five richest countries of the world. Undoubtedly an intrusive policy to foster diversity has helped Singapore achieve unprecedented economic growth.
Singapore Standings As Per Ipsos’s Top Cities Survey
According to Ipsos’s Top Cities survey reported in September 2013, Singapore ranks 9th best city to do business and visit and the country has acquired the 11thrank for the best city to live in.
Singapore is counted as one of the best cities in the world to do business, visit and live in as per the report of the largest ever global survey conducted as ‘Ipsos’s Top Cities Survey’. The city-state has achieved the 9th position for the two parameters for visiting Singapore and for Singapore Company Formation. When it comes to an overall winner, New York City emerged as the top city, followed by London, Sydney, and Abu Dhabi.
While, the island nation along with Los Angeles shared the position of 9th best city to do business, Bangkok, Hong Kong, and Istanbul are the cities that shared 9th ranking with Singapore for the parameter of best cities to visit in the world.
Zurich was acclaimed as the best city to live in, followed by Sydney and London. As a city to live in, Singapore, has secured the 11th position along with Auckland, Copenhagen, and Rome.
Why Singapore is The Best Destination for Company Formation?
With increased globalization, increasing number of the world’s population has started living in cities. It’s not about Europe and America, people have started to think beyond it. With rapid growth in air travel, investor friendly corporate policies, the lowest tax regime in the world, stable government as well as corruption and red tape free bureaucracy Singapore has rapidly emerged as a business hub on the global map.
Undoubtedly newer generation of entrepreneurs and investors is smarter and quite discerning. Not only they know global cities well, but, when it comes to starting a business at a new destination, they avoid making hasty generalizations. A business is not about how many hours you can work or how many hurdles you can overcome, it is all about how fast you can reach from ‘point A’ to ‘Point B’. Singapore has become that place, easing the transition from point A to B in quickest succession and that too by maintaining product or service quality along with a healthy margin. Keep on reading if you are interested to start your own business in Singapore.
Let us consider the possibilities of Singapore Company Formation in the form of a subsidiary, without relocating to this business nation.
A Singapore subsidiary is a locally incorporated limited liability company or private limited company having major shareholders in the forms of a foreign company. By incorporating a subsidiary company in Singapore, a foreign entrepreneur or a foreign business entity is able to access the tax benefits and business incentives that are being entitled to a locally incorporated Singaporean company. Although many foreign entrepreneurs are interested in setting up their business in Singapore one common question that haunts their mind is, “Whether it is possible to incorporate company in Singapore without relocating?” The answer is yes. However, it is highly recommended to hire a reliable third party firm offering quality company incorporation services.
Also Read: Definitive guide to registration Company Singapore Vs. Hong Kong
The Important Prerequisites Required for Starting a Subsidiary Company in Singapore
- At least one director, above 18 years of age and an ordinary resident of Singapore (Appointing a nominee director is also allowed)
- Minimum one corporate shareholder
- One company secretary, above 18 years of age and an ordinarily Singapore resident
- A locally Singapore registered address
- Minimum paid up capital of SGD 1
Advantages of a Singapore subsidiary company:
- The parent company is allowed to hold 100% ownership of the subsidiary
- A Singapore subsidiary is entitled to local tax benefits with at least one individual shareholder holding a minimum of 10% shareholding.
- The parent company is allowed to set up a subsidiary company by using the same currency as a paid up capital as used by the parent company making the Singapore accounting procedure easier and compliant.
- The Singapore corporate regime offers flexibility for the companies to choose their own convenient fiscal year; the parent company can use this feature to its advantage and match the fiscal year for streamlining its own business operations.
- The option of using a different business name for the subsidiary company can also be used productively by the parent company.
- By incorporating a subsidiary company, the parent company receives a cushion against the liabilities incurred by the subsidiary company in Singapore.
- A Subsidiary company can raise capital if the parent company decides to offer stocks in a portion of its share in the subsidiary without affecting its own stocks.
- Often there are many business activities not suitable for public disclosure and disclosure requirements, by registering a subsidiary company in Singapore, the parent company gets an advantage of deciding on what business activities have to be made public and what has to remain private.
- Due to setting up a subsidiary company with different business activities, the parent company gets an opportunity to keep both its business activities distinct.
- The subsidiary company is entirely free to repatriate all its profits and capital out of Singapore.
All you have to do is to appoint a resident director and furnish him/her with all the relevant documents such as identity card information, certificate of incorporation of the parent company, etc. to process the Singapore business incorporation on your behalf. This way, you would be saving the high commuting costs, hotel accommodation charges and most importantly, your precious time and energy in accomplishing the process of Singapore company incorporation.
Are you interested in the subsidiary company registration services offered by SBS Consulting? Call us on +65 6536 0036 or drop us an email at firstname.lastname@example.org, and you will know why we are best in the business.