Why Engage a Corporate Services Firm to Start a Subsidiary Company in Singapore?
Singapore is fast catching the fancy of international entrepreneurs. According to the Global Competitiveness Report published in 2014–2015, Singapore occupies number one position in the list of the most attractive investment destinations the world. In fact, recently the World Bank even declared Singapore as the an ideal country to do business in, in its ‘Doing Business Report’.
Singapore’s popularity has a lot to do with its business & investment potential, which has made it a true global business & financial hub. As a result, there has been a tremendous increase in the number of foreign and local entrepreneurs opting for Singapore business incorporation. The foreign entrepreneurs are more inclined to start a subsidiary company in Singapore.
There are plenty of reasons for a foreign entrepreneur to engage a Singapore company incorporation specialist to set up a company in Singapore. The reasons for the same are presented below:
- The incorporation services in Singapore include the assistance in company name approval, which is the first step to open company in Singapore.
- Such service providers fulfill the mandatory requirements of Singapore company registration by offering the services of local Director and company secretary to the entrepreneurs.
- The incorporation firms also provide expert assistance in the provision for physical office address registration, which is required at the time of company registration.
- Such firms diligently take care of all the formalities associated with Singapore business incorporation; beginning from the company name approval, submission of client’s documents and processing of application to the final step of opening a corporate bank account.
- By engaging such corporate firms, the foreign entrepreneurs planning to start a subsidiary company can focus on their important tasks such as making last minute adjustments to their business plans, finding local partner, capital and market surveys.
- Also, the valuable time, effort and resources that an entrepreneur will be saving in the process can be directed towards the core areas of his/her business.
Opportunities for a Subsidiary Company in Singapore
The open economy, lenient tax regime, state-of-the-art cityscape, talented multi-cultural workforce, lower crime rates, and best-in-class educational and medical facilities, are inducing the foreign corporate to set up a subsidiary company in Singapore. It is a form of Private Limited Company (Pte Ltd).
Requirements for Setting up a Subsidiary Company in Singapore
- Minimum Paid-Up Capital– At least S$1
- Local Director– At least one local director, above 18 years of age, who is a Singaporean citizen, Singaporean permanent resident, or an employment pass, dependent pass, or entrepass holder
- Company Secretary– He/she should be a Singaporean citizen, Singaporean permanent resident, or an employment pass holder. He/she should be appointed within 6 months of formation of the subsidiary company
- Registered address– It can be a commercial office address or a home office address, but a P.O. Box address is not allowed
- Shareholding –At least one shareholder
- Auditor –He/she should be appointed within three months of Singapore Subsidiary registration
Documents Required for Registering a Subsidiary Company
- The parent company should provide its own certificate of incorporation
- An extract from the Registrar of Companies, that shows the registered address, the directors’ details, and the nature of business of the parent company
- A letter that authorizes a specific individual to sign necessary subsidiary documents, on behalf of the parent company
- Certified copy of the passports of the relocating individual, individual shareholders (if any), and those who will act as the directors of the Singapore subsidiary
- Memorandum & Articles of Association for the proposed Singapore subsidiary company.
- If the documents are not in English, a certified translator must translate them into English. The governing bodies like ACRA accept documents written only in English.
Post Registration Activities
- Singapore incorporation services like, SBS Consulting, assist their clients in opening a corporate bank account with any bank present in Singapore
- ACRA sends an email to convey the registration of the subsidiary company. In Singapore, the mail is equivalent of a Certificate of Incorporation. For a small fee, its hard copy can be obtained
- Send for the Company Seal and Stamps
- If the subsidiary’s activities need licenses and permits, apply and acquire them, before starting any business activities
- Get CPF Payment Code and CPF Submission Number (CSN)
- Know CPF contribution details, use CPF e-Submit@web
Despite the favorable policy framework put in place by Singapore’s regulatory agency ACRA (Accounting and Corporate Regulatory Authority) for the business incorporation in Singapore, the aforementioned reasons provide a valuable insight into why the ACRA officials advise the foreigners to appoint a competent Singapore incorporation services to incorporate their subsidiary company in Singapore.