A subsidiary is a locally incorporated private limited company, where the majority shareholder is another local or foreign company. Singapore allows 100% foreign ownership of companies. Consequently, a foreign company can acquire a local limited company (i.e., establish it as a subsidiary) and hold 100% of its shares.

For foreign companies looking to expand into the Singapore market, establishing a subsidiary is the most suitable option. A properly structured local subsidiary is a separate corporate entity and is required to pay local taxes. A Singapore subsidiary is considered an independent and separate legal entity from the foreign company, even if the foreign company holds sole shareholding. The responsibilities of the subsidiary do not apply to the parent company.

The name of a subsidiary may differ from the name of the parent company, subject to approval from the Companies Registration Office. The Companies Act requires the appointment of one or more directors. At least one director must be a Singapore resident (citizen, permanent resident, or Work Permit holder). A Singapore subsidiary must have a registered address in Singapore and maintain the required corporate documents there. For tax purposes, the subsidiary can be considered a company domiciled in Singapore, and therefore entitled to tax breaks and incentives available to local companies.

If you are a foreign company looking to register a business in Singapore, contact Company Registration Singapore. As an international business services provider, Esin Business offers comprehensive solutions for the registration and operation of foreign company subsidiaries, safeguarding your commercial development in Singapore. Please choose according to your needs:

1. Singapore Subsidiary + Work Permit
2. Singapore Subsidiary + Appointed Director