Everything you need to know about Subsidiary Company Registration

If one is looking to operate a new business in Singapore but wishes to be free of any legal obligations and thus isolate from potential risks, what could be a better option than setting up a subsidiary company? A subsidiary company is actually say a daughter company which may be partly or fully owned by another company (the parent company, as it owns a major part of the subsidiary company’s stock), and is completely regulated by the parent company.

The parent company holds complete control over the subsidiary. However, this structure leverages the parent company in terms of a protective net against risk as both the companies still remain two separate legal bodies. The subsidiary, if at any time, suffers a certain kind of loss, cannot automatically transfer the losses to the parent company.

Furthermore, the administration department of the parent company does not have to worry about any responsibilities regarding the operational details of the subsidiary company. For this very reason, all sizes of international organizations who seek to build their presence in Singapore are recommended to go for a Subsidiary Company Registration, as it keeps your valuable assets intact while minimizing your liabilities and responsibilities and allowing you to leverage the Singapore tax benefits, as a subsidiary is seen as a local company.

Mandatory Requirements for setting up a subsidiary in Singapore:

• A minimum of one nominee director, who needs to be minimum 18 years of age and should be either a permanent resident or citizen or a valid pass holder of Employment and/or Dependent pass.

• A minimum amount of S$1 should be deposited as paid-up capital.

• Valid registered address that is bound to be local. All the statutory records of the Daughter Company/Subsidiary are kept in this registered office only.

• One local resident of Singapore should be appointed as the Company Secretary.

• The director must appoint an auditor within a maximum time span of three months from the registered Subsidiary office.

• All the audited account information must be filed annually with the ITA (Income Tax Authority) of Singapore.