Setting up a Subsidiary in Singapore for a Multinational Company

Setting up a Subsidiary in Singapore for a Multinational Company

Singapore is known for being Asia’s Hub Port when it comes to business. One of the reasons why it can reel numerous MNC’s also known as Multinational Companies in Singapore. With its distinguished reputation, companies such as Bosch, Panasonic, Sony Corporation and others have set up a base in the country. And because the country supports foreign in their countries, setting up a subsidiary in Singapore for a Multinational Company is easy.

MNCs in Singapore has three different company structures to register their company in. These are:

  • Representative Office
  • Branch Office
  • Subsidiary Company

But today, we’ll focus on the Subsidiary Company.

What is a Subsidiary Company?

It is a company that is locally incorporated in Singapore. This company’s significant shareholders can be mostly foreigners or even have a foreigner as a company owner. Most importantly, it is must be a Private Limited Company whose shareholders must be based on the Company’s Act

For foreign business owners who intend to expand their market to Asia, it is highly recommended, especially for multinational companies— to establish a base in Singapore.

What are the Statutory Requirements for Setting Up a Subsidiary Multinational Company in Singapore?

  • Your company must have a Registered Office in Singapore
  • One of the Directors must be a local resident in Singapore
  • Your Company must have an appointed Secretary

It is also required for Subsidiary MNCs in Singapore to adhere to these Annual Compliance Conditions:

  • The company must submit an Annual Audited Accounts
  • The company must complete filing the Annual Returns
  • The company must complete filing Tax Returns

Registering Subsidiary MNC may take 1 – 2 days, and because the Singaporean Government treats a Subsidiary MNC as a local company, the main company, also known as the parent company, is free from paying taxes. It is also considered as a different entity from the parent company, which means it can have a different name apart from that of the main one. Nevertheless, you are required to abide by the Companies Act, such as having an Annual General Meeting every 18 months as well as the appointing of a company secretary every 6 months.

Required Documents for Registering a Subsidiary Company in Singapore:

  • The Parent Company’s Certificate of Incorporation
  • Form no. 6 also known as The Statutory Declaration of Compliance
  • Notice from the Registrar of Companies (ROC)

Note: Must show the location of the registered office, its office hours or any changes made (Form 44)*

  • The Director(s) residential address and the passport details
  • Information and Details of the Register of Directors, Managers, Secretaries and Auditors and any changes made (Form 49)
  • Directive and Articles of Association
  • A Signed Document of the Consent to Act As Director (Form 45)

Steps for Registering a Subsidiary Company

  • Get Your Company Name Approved
  • Submit Your Documents
  • Incorporate Your Company

The Accounting and Corporate Regulatory Authority (ACRA) will send an email to you, notifying you of your company’s registration number, upon registration. This notification may also serve as an announcement that your company incorporated in Singapore, officially.

Conclusion:

Setting up a Subsidiary in Singapore for Multinational Company is fast and easy.  And although the registration process is quick and easy, it is better to seek for secretarial services for a smoother and more organised filing.