A subsidiary company is a private limited company incorporated in Singapore that is partly or completely owned by the parent company, which usually holds a controlling interest (more than 50%) in the subsidiary company. A subsidiary structure is also a common form of incorporation in Singapore.
The subsidiary-parent company structure is a popular choice for foreign companies foraying into Singapore because subsidiaries are separate legal entities, which limit the liability and legal risk of the parent company. A subsidiary is partly or wholly owned by a parent company, which can either be a local or foreign company. In Singapore, 100% foreign ownership in a subsidiary company is permitted.
A subsidiary company is treated as a local tax-resident here, thereby allowing it to enjoy certain tax benefits and incentives offered by the authorities. It has limited liability, which means it can sue or be sued, and own property in its name. It also has its own corporate bank accounts and operating capital.
A Singapore subsidiary company is suitable for local or foreign companies that wish to expand their operations in Singapore.
For more information, please visit our Singapore Statutory Compliance Requirements page and Incorporation Details page. Once the subsidiary company is incorporated, annual filings to ACRA and IRAS is required. Please visit our Annual Filings page for more information.
VOPlus can advise you on the most suitable type of business entity for your business and help you convert a private limited company in Singapore promptly. Contact us today for a consultation!