How do I register a subsidiary company in Singapore?
The process for registering a subsidiary company in Singapore is quite straightforward and can be done entirely online.
Here's a breakdown of the registration process:
Reserve a Unique Company Name:Â Before you begin the registration process, you'll need to check for and reserve a unique name for your subsidiary company with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. This can be done on their BizFile+ portal.
Prepare Necessary Documents:Â Gather the required documents for registration. These typically include:
Information about the proposed company name and business activities
Details of the shareholders and directors, including passports and residential addresses
A valid Singapore address for the company's registered office (you can use a virtual office service)
Company constitution outlining the company's internal governance
Register the Company Online:Â Once you have all the documents prepared, proceed to register your subsidiary company through BizFile+. This is a user-friendly online portal that guides you through the process.
Pay Registration Fees:Â There are associated fees for registering a business in Singapore. You can find details about the applicable fees on the ACRA website.
Approval and Incorporation:Â ACRA will review your application and notify you of their decision. Upon approval, your subsidiary company will be officially incorporated in Singapore.
Additional Considerations:
Post-registration: Following incorporation, there might be additional steps such as opening a corporate bank account and fulfilling statutory obligations.
For a more comprehensive guide and up-to-date information, refer to the official ACRA website.
Why register a subsidiary company in Singapore?
There are several compelling reasons to register a subsidiary company in Singapore, especially for foreign businesses looking to establish a presence in Southeast Asia. Here's a breakdown of the key attractions:
Tax Benefits:
Low Corporate Tax Rate: Singapore boasts a competitive corporate tax rate of 17%, compared to the regional average. This translates to significant tax savings for your subsidiary.
Tax Exemptions and Incentives: Singapore offers a range of tax incentives to attract foreign investment. These can include exemptions on startup profits, deductions for research and development, and concessionary tax rates for specific industries. Research these to see if your business qualifies.
Business Friendly Environment:
Ease of Doing Business: Singapore consistently ranks high for its streamlined and efficient business setup process. Compared to other countries, registering a subsidiary in Singapore is relatively straightforward.
Openness to Foreign Investment: Singapore actively welcomes foreign investment with minimal restrictions on foreign ownership. This allows you to maintain control over your subsidiary.
Strong Regulatory Framework: Singapore has a well-established and transparent legal system, offering greater certainty and stability for your business operations.
Global Connectivity:
Free Trade Agreements: Singapore has an extensive network of free trade agreements (FTAs) with many countries. These agreements reduce trade barriers and offer preferential tariffs for your subsidiary's exports.
Financial Hub: As a well-regarded financial hub in Asia, Singapore provides access to a wide range of financial services and facilitates international transactions.
Additional Advantages:
Talent Pool: Singapore offers a highly skilled and multilingual workforce, making it easier to find qualified employees for your subsidiary.
Excellent Infrastructure: Singapore boasts world-class transportation and communication networks, which can significantly improve your business operations.
High Quality of Life: Singapore offers a high quality of life, which can be attractive for expatriate employees you might need for your subsidiary.
How Bestar MY can Help
Some general information on how Bestar MY might assist you registering a subsidiary in Singapore:
Bestar MY's Role:
Since Bestar MY is located in Malaysia, we are familiar with the nuances of registering a subsidiary in Singapore for Malaysian companies.
We are able to help you with the following aspects:
Understanding the pros and cons of registering in Singapore (considering your specific business goals).
General guidance on the Singapore subsidiary registration process.
Bestar can handle the registration formalities.
Important to Note:
Post-registration steps might include opening a corporate bank account and fulfilling statutory obligations.