Foreign investors guide to Singapore Company Incorporation

As a foreigner you might be new to Singapore’s way of doing things. Singapore consistently ranks as the world’s finest place to do business. The Republic welcomes foreign investors with a smooth channel for establishing operations here. Incorporation of a company can be done within a time frame of two business days once the required documentation is in place. It is interesting to note that for Singapore company incorporation, a foreign investor is not required to travel to Singapore.

Service providers like Servolve, makes it an easy process. The requisite documentation required would be informed in advance. Once the same is received, incorporation process will be commenced without further delays. The same can be completed within a period of 2-3 working days on average. If the foreign investor is planning to set up a subsidiary in Singapore, this also possible due to some distinct features allowed for Singapore Pte.Ltd. companies. Some of these are mentioned below


Features of a Singapore subsidiary company

• The Singapore Company has a distinct legal identity.
• The minimum paid up capital is $1. The parent company’s liability is limited to the value of the shares it subscribes into the subsidiary.
• One local Director and one local Secretary are mandatory for the company
• If it is a one Director company, the same person cannot stand in as Secretary
• The foreign parent company may own 100% of the subsidiary.
• The top line tax rate for corporate in Singapore is 17%.

Once the Singapore Company is incorporated, the profile of the Company in Singapore as well as the Memorandum and Articles of Association will be available and these are the main documents required for bank account opening in Singapore. An actual visit by the foreign investor may be required only at the time of opening a bank account. This is desired in order to speed up the process of bank opening. Many banks in Singapore like Standard Chartered Bank allow the individuals to also visit a branch in their place of residence for identity verification. But the process of bank account opening may take longer in this case.


A Singapore subsidiary comes under the requirement of audit in Singapore if it has corporate shareholders. In case there are only individual shareholders and the annual revenue is below S$ 5 million there is no requirement to get the accounts audited. A Directors’ report and summary financial statements are still required to be prepared. This is required to be submitted along with the tax forms at the end of the year.


For a Singapore Company, an Annual General Meeting (AGM) should be conducted every 12 months with the possibility of extending the first AGM to be conducted within a gap of 18 months after company incorporation. This is in line with the spirit of Companies Act, Singapore which allows a company to close its first year accounts within a period of 18 months instead of the regular 12 month period.


For a comprehensive understanding of how to incorporate a subsidiary in Singapore, please contact Servolve at info@servolve.com. Servolve is a Singapore based professional services provider. Our service offering include Singapore company incorporation, corporate secretarial and support services, Singapore accounting and Singapore taxation. For more information, please refer www.servolve.com