A subsidiary company is a private limited company incorporated in Singapore with the parent company as its shareholder. For small to medium-sized businesses, both local and foreign, looking to expand their business here, a subsidiary company offers the perfect vehicle.
- A subsidiary company is incorporated as a limited liability company
- It operates with a separate and distinct legal identity.
- The foreign company’s liability is limited to the value of the shares it subscribes into the subsidiary.
- The foreign parent company may own any portion up to 100% of the subsidiary company’s shares.
- A subsidiary company is entitled to Singapore corporate tax incentives if it has at least one individual shareholder with minimum of 10% shareholding.
- Newly incorporated companies are NOT REQUIRED to pay tax on the first S$100,000 of chargeable income for the first three consecutive years.