Expanding your business to Singapore is an exciting step. One of the first decisions you'll make is how to structure your new entity. For foreign companies, a subsidiary company is the perfect solution.
This guide breaks down everything you need to know in simple terms:
✅ What a subsidiary company really is in Singapore
✅ Why do many businesses, both local and overseas, choose this structure
✅ The exact requirements and documents you’ll need
✅ How the registration process works
Let’s get started.
What is a Subsidiary Company?
In Singapore, a subsidiary is a separate company that is controlled and owned by another "parent" company.
Think of it as a "child company" that is run by its "parent company." The parent company holds a majority or all of the shares, giving it the power to make major decisions.
This structure is particularly relevant for foreign companies looking to establish a legal presence in Singapore. For example, a Hong Kong-based firm can register a new company in Singapore and hold all of its shares. This Singapore entity would then operate as its subsidiary, conducting business independently in the local market while ultimately reporting to its overseas parent.

Note: For local entrepreneurs starting a business in Singapore, the standard choice is to simply form a Private Limited company (Pte Ltd), which is the same legal form a subsidiary takes.
Subsidiary vs Branch Office vs Representative Office
When establishing a presence in Singapore, foreign companies have three main options: a subsidiary, a branch office, or a representative office. Each differs in legal standing, liability, and operational scope.
Here’s a simplified comparison:
| Structure | Legal Status | Best For | Risk to Parent |
|---|---|---|---|
| Subsidiary | Separate local company | Companies seeking full operational control with independent trading, hiring, and contracting capabilities | None |
| Branch Office | Extension of foreign company | Short-term projects under the parent’s name | Full liability |
| Representative Office | Not a legal entity | Market research and promotion only; no revenue-generating activity | None, as it cannot sign contracts |
Advantages of a Subsidiary Structure
A subsidiary combines legal protection with operational independence. This makes it a preferred choice for both local and foreign businesses.
Key benefits of a subsidiary include:
- Limited liability: The parent company’s assets are protected from risks incurred by the subsidiary.
- Independent operations: The subsidiary can trade, hire staff, sign contracts, and manage day-to-day operations on its own.
- Government participation: Only locally registered entities can engage in public-sector contracts listed on GeBIZ, Singapore’s official procurement portal.
- Ownership control: The parent company can retain full control while keeping the subsidiary separate.
- Local taxation: The subsidiary pays corporate tax in Singapore and can access tax exemptions and double-tax agreements.
By separating legal and operational responsibilities, a subsidiary provides a balance of protection, flexibility, and credibility that is particularly valuable for companies aiming for a long-term presence in Singapore.
Requirements to Register a Subsidiary in Singapore
Before you can register a subsidiary, ACRA requires a few core conditions to be in place. These are the essentials:
- Appoint at least one shareholder. This can be an individual or a corporate parent based in Singapore or overseas.
- Appoint at least one Singapore-resident director. This must be a Singapore Citizen, Permanent Resident, or a foreigner holding a valid work pass. If no one from your company is locally based, you’ll need to appoint a nominee director through a corporate service provider.
- Provide a registered local address. This can be a commercial office or the address of your corporate service provider or company secretary. P.O. boxes are not accepted.
- Set a minimum paid-up capital of SGD 1. You can increase this later if needed.
- Appoint a qualified company secretary. This must be appointed within six months of incorporation, as required under Section 171 of the Companies Act.
For foreign-owned subsidiaries, additional verification rules apply:
- Corporate service providers are required to collect passport copies and proof of residential address for KYC verification.
- If a foreign corporate parent holds the shares, agents may request its Certificate of Incorporation and corporate profile, and depending on jurisdiction, these may need to be notarised or apostilled.

Important: Serving as a director does not automatically grant work rights in Singapore. If a foreign director intends to actively manage operations on the ground, they must apply for an Employment Pass with the Ministry of Manpower.
How to Incorporate a Subsidiary in Singapore
The registration process is relatively quick, often taking just 1-2 days. If you already have SingPass access, you can file the company yourself through ACRA’s Bizfile portal. If you’re based overseas and don’t have SingPass, you’ll need to submit the application through a registered corporate service provider, which is standard practice for foreign-owned entities.
To register a subsidiary in Singapore, you’ll need to:
- Reserve your company name via Bizfile or through your corporate service provider. Most names are approved quickly unless they are identical to an existing entity, contain restricted words (e.g. “Temasek”), or are deemed offensive or misleading under ACRA’s guidelines.
- Prepare your incorporation details, including shareholder and director information, registered office address, paid-up capital, and the Company Constitution. If a foreign company is acting as a shareholder, its registration certificate and corporate profile may be requested for verification.
- Submit the application through Bizfile or your corporate service provider, depending on whether SingPass access is available.
Once submitted, ACRA processes most incorporation applications within one to two business days, and if approved, your Unique Entity Number (UEN) and business profile will be issued electronically.
After incorporation, you’ll need a business bank account so the subsidiary can receive payments and pay expenses under its own name. If a director has SingPass access, many banks in Singapore allow the account to be opened entirely online. If not, MAS-licensed payment service providers like Statrys offer a fully remote alternative.
Conclusion
A subsidiary is one of the most practical ways to operate in Singapore under a separate legal entity while keeping control at the parent level, whether you’re based locally or expanding from overseas. The requirements are clear, the registration process is fast, and once incorporated, you can trade, hire, and scale just like any other Singaporean company.
If you’re looking for a long-term structure that offers flexibility without compromising ownership, the subsidiary model is one of the strongest setups available.
FAQs
Can a foreign company own 100% of a subsidiary in Singapore?
Yes. Singapore allows full foreign ownership of subsidiaries. A foreign company can register a new entity in Singapore and hold all of its shares, as long as it appoints at least one locally resident director.





