A company is taxed at a flat rate on its chargeable income regardless of whether it is a local or foreign company.
Tax rates, exemptions, and rebate for each YA
Key facts to note about Singapore subsidiaries
The parent company can own 100% of the shares of the Singapore subsidiary.
A Singapore subsidiary must appoint at least one local director. The director must be a local resident in Singapore, i.e. a Singapore citizen, a Singapore permanent resident, or an Employment Pass holder. Directors must be at least 18 years of age and must not be an undischarged bankrupt or convicted of any malpractice. Foreign companies that plan to relocate their staff from their head offices to Singapore can apply for their Employment Pass after the subsidiary has been registered.
The minimum paid-up capital for a Singapore subsidiary company is S$1.
Local registered address
A Singapore subsidiary company must have a registered office in Singapore. The registered address can be a commercial office or a home office.
After incorporation, the directors must appoint a person who is a resident in Singapore as the company secretary.
An auditor must also be appointed within three months from the registration date of the Singapore subsidiary company. In this instance, Paul Hype Page & Co can serve as your auditor.
Documents required for Foreign Subsidiary Incorporation
- Certificate of incorporation of the parent company
- An extract from the Registrar of Companies that shows the current registered address and directors of the parent company
- A corporate resolution authorizing a specific individual to sign necessary subsidiary documents on behalf of the parent company
- Passport particulars and residential address details of individuals who will act as directors of the Singapore subsidiary company
- Signed Consent to Act As Director by each proposed director
- Registered address details of the Singapore subsidiary company
- Memorandum & Articles of Association for the Singapore subsidiary company
All documents must be in English and any non-English documents must be translated into English. Any professional corporate services provider to be engaged may require additional documents.