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Has anyone registered a subsidiary before?

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tjdwls85
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Has anyone registered a subsidiary before?

Postby tjdwls85 » Thu, 03 May 2012 8:08 pm

I want incorporate a foreign company's subsidiary in Singapore and would like to find out how much paid up capital I would have to pump in to be relatively safe to secure at least one EP.

Does anyone have an idea? The company's main activities would mainly include importing of industrial equipment.

Your help would be greatly appreciated.

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Strong Eagle
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Postby Strong Eagle » Thu, 03 May 2012 8:33 pm

Unlike a number of other countries, there is no requirement whatsoever for anything other than the absolute minimum of paid up capital to be able to obtain an EP... as opposed to Malaysia or Thailand, for example, where big bux need to be put into the company for each EP.

What matters a lot more is the viability of the company creating the subsidiary... track record, good financials, viability, and the quality of the individual who is seeking the EP.

I'd find a good CPA to handle the filings. You'll probably want supporting docs for the EP.

tjdwls85
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Postby tjdwls85 » Thu, 03 May 2012 10:14 pm

Thank you so much for your reply. You seem to know quiet a bit in regards to this matter.

I guess I will have to try to find out. Do you have any good CPAs that you can recommend? Oh, and what do you mean by supporting docs for the EP?

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Postby Strong Eagle » Fri, 04 May 2012 11:22 am

Consider this scenario. You are from the subcontinent. You create a company in India. It has never done business or made a nickel, doing whatever it is supposed to be doing.

But what it does do is create a subsidiary, a wholly owned private limited, in Singapore with the idea that it will now be able collect EP's from MOM for various citizens of the subcontinent, thereby circumventing ICA and MOM rules for starting businesses and getting EP's.

Red flags go up all over the place. MOM isn't stupid... they go to check with ACRA. Something looks fishy.

Therefore, when you file for a pte ltd with ACRA, you provide as much information as possible about the viability and status of the foreign company so that if MOM does enquire, ACRA knows.

Second, when you file for an EP, you've got a business plan in place to share... else why form the business in the first place? You've got notes about contracts in hand or soon in hand. You've got justifications as to why you need to EP and not just hire a local. In other words, you do your homework to show that you're not just a scam and that the EP is to get the kind of talent required to make the business grow.

My CPA is:

Tan Saw Bin<SawBin>
118 Aljunied Avenue 2 #06-104
Singapore 380118
+65 6844 8626
http://www.sbtan.com/

tjdwls85
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Postby tjdwls85 » Fri, 04 May 2012 4:25 pm

That is a very good example that I can totally relate too. Thanks a lot.

Your scenario gives me confidence that I will be able to get my things done,

as I am not trying to collect EPs just too get people in here.

My foreign company just managed to clinch a deal here in Singapore and I believe that there is potential for my company to expand in this region.

I will only need one EP because I don't think I can afford to hire 4 locals to run my business with an Entrepass in the long run.

I really appreciate your comments.

I will keep in mind that the government here is not stupid.


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