Singapore Subsidiary Formation with Employment Pass

Singapore Subsidiary Formation with Employment Pass

Singapore has become a popular destination for the incorporation of Subsidiary Companies. The key reason behind this is the transparent and business friendly corporate governance laws, world-class infrastructure, and low tax regime provided by Singapore.

Subsidiaries are beneficial for companies as it helps in accessing the resources available in Singapore and work with local partners. This gives you an opportunity to expand your business globally while saving time and money on operational costs due to the lower labor costs and taxes of Singapore compared to other countries like India or the USA.

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Subsidiary Setup with Relocation Option to Singapore

Singapore is the best place to set up a subsidiary. Singapore has a strong economy and is highly ranked in global indices. Being close to Asia, Singapore is exceptionally convenient for doing business with other Asian countries such as China and Malaysia.

You must perform the following steps if you want to establish a subsidiary company and transfer a staff member to Singapore:

  • Incorporate a Subsidiary Company Corporation
  • For the employee who is moving to Singapore, get an employment pass
  • Only once the registration of the subsidiary company has received approval may an application for an employment pass be submitted
  • The registration process can take up to three months but can be expedited if you have a good reason for doing so

The Employment Pass application will be processed within two weeks. Once the application is approved, you can start using your Subsidiary Company for business.

Setup Requirements for Singapore Subsidiary Company

Singapore subsidiary companies have the following setup requirements:

  • Minimum 1 Corporate Shareholder – You will be the owner of this Singapore-registered company
  • 1 Resident Director – Each Singapore subsidiary company must have a resident director who can represent your company in Singapore
  • The resident director needs to be someone with prior experience running similar companies and is usually your lawyer or accountant. Suppose no one from your team has these qualifications. In that case, you may consider hiring a professional consultant for advice and guidance on the formation process before setting up the business operation in Singapore
  • 1 Company Secretary – The person responsible for keeping records of meetings and maintaining corporate governance at our offshore company’s main office in Singapore

Features of a Subsidiary

A subsidiary is a form of company that another company owns . In other words, the parent company owns more than 50% of shares in its subsidiaries. The parent company can therefore control its operations and management.

A subsidiary is not allowed to make any decisions on its own. The parent company must make all such decisions in accordance with relevant laws, which typically require that boards of directors be appointed by shareholders of both companies jointly.

In order to establish a Singaporean subsidiary for your foreign entity, you will need to submit documents related to incorporation:

  • Articles of Association (AOA) – this document sets out an LLC’s internal rules and regulations
  • Certificate of Incorporation – this document confirms the establishment date for an LLC
  • Certificate of Registered Office Address – this document provides proof that an LLC has been registered under relevant laws
  • Memorandum & Articles – these two documents should be submitted together but are separate from one another; and
  • Statutory Resolutions – these are the documents that are submitted to government authorities for approval

At IMC, We Can Help You

With the support of a Singapore resident director, IMC can assist you in forming your Singapore subsidiary company. We can give you a temporary local resident director through the Nominee Director Service until you have obtained an Employment Pass and can take on that responsibility. The local directorship will be transferred to you once you have obtained your Employment Pass.

We at IMC can then request the Employment Pass for you or your staff members. Forming a company is simple, and IMC can assist you. You can register a Singapore firm and apply for an employment pass without traveling to Singapore.

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