Singapore is widely known as one of the best business centers not only in Southeast Asia but in the world. World Bank has ranked Singapore in the second place for ease of doing business as of 2018. Not only Singapore locals, but foreigners can also easily start a business in Singapore and grab opportunities in the country. Foreign investors can even have 100% foreign ownership of a company in the country, and this is ruled under the business legislation of Singapore. Another advantage of doing business in the country is that there is favorable tax regulations that are considerably low as well as zero restriction on repatriation of earnings and capital. Any company registration in Singapore does not require intricate process, thus it is very favorable for anyone who wishes to start a business.
One of the type of business a foreigner can start in Singapore is a subsidiary company. A Singapore subsidiary company is a type of private limited company that is established in Singapore. This business registration is often preferred by small to medium-sized companies. The law in Singapore permits a foreigner to have full ownership of a subsidiary company in the country. A subsidiary company in Singapore viewed as a separate entity from its parent company. This makes the liability and debts of the subsidiary in Singapore to be it is own and does not concern its foreign parent company.
In order for the parent company to own 100% shares of the subsidiary company, at least one director must be appointed to be responsible for the subsidiary company. The requirement for this director is that the person must be a Singaporean citizen, a Singapore permanent resident, or a person that holds an Employment Pass of Singapore. The director must be at least 18 years of age with no history of bankruptcy and criminal record. If you wish to place staff from the origin country in Singapore, then they must apply for an employment pass. They can register for this permit after the company is successfully registered. The shareholders must have paid-up capital of minimum S$1 for this subsidiary company. Another thing they must register is a local office addressed in Singapore. Another staff member that is obliged to be present in the company is a secretary that is a native person of Singapore. The law also requires an auditor to be appointed within three months after company incorporation.
The Singapore law makes it an obligation for non-Singaporean who wishes to expand their business in Singapore to use the service of a professional firm to aid them in the process of company registration. All the registration process are to be done online. Once your company name is approved and your company is successfully incorporated, you will receive an official e-mail that states that your company is now registered with ACRA. The registration of a company in Singapore only takes up one to two days as long as all the requirements are fulfilled and documents are provided according to the rules.