Singapore’s business environment and attractive policies continue to attract entrepreneurs and companies to set up business in the republic. It is not only the easiest place to do business in the world, but also the most competitive city in Asia as well. In this page, you will learn about the company setup options available to local or foreign individuals as well as foreign companies.
Company incorporation options for local or foreign individuals
Private Limited Company
The Private Limited Company is the most preferred business entity that can be set up in Singapore. The biggest advantage of a Private Limited Company is that the shareholders are not liable for its debts and losses of the company beyond their respective amounts of share capital.
To register a Singapore private limited company, the following are required:
- At least 1 Shareholder
- 1 Singapore Resident Director
- 1 Company Secretary
- At least S$1 in initial paid-up share capital (or its equivalent in any currency)
- A Singapore registered office address
Company incorporation options for foreign companies
Subsidiary Company
A Singapore subsidiary is the vehicle preferred by many foreign companies to establish a presence in Singapore because it enjoys local tax treatment as well as a legal identity that is separate from their parent companies.
Additionally, the subsidiary can have paid-up capital in the same currency as its parent company, thus making the worldwide accounting process easier. Also, Singapore does not have mandated financial year ending and the subsidiary can declare a financial year end (FYE) to match with its parents.
A subsidiary company is a private limited company that is 50 – 100% owned by a parent or holding company. The parent company may be local or based overseas.
Its name can be different from that of the parent company.
A subsidiary is incorporated as a limited liability company, and has a distinct legal identity from its parent company. This means that the shareholder’s liability is limited to the value of the shares it subscribes to.
The subsidiary may repatriate profit out of Singapore.
To register a subsidiary in Singapore, the following is required:
- A registered office in Singapore.
- Minimum paid capital of $1 (or its equivalent in any currency)
- 1 Singapore Resident Director
- 1 Company Secretary
For taxation purposes, the subsidiary is treated as a Singapore resident company and is eligible for local tax exemptions and incentives. A Singapore subsidiary must file audited accounts annually. However, dormant companies may file unaudited financial reports.
Read more about the company registration options in Singapore at Singapore Company Incorporation website.
