A holding company in Singapore is a popular way to optimize your investment strategies and enhance operational efficiency for your business in the country.
In this guide, we’ll cover the compliance requirements, key documents, and criteria to register a foreign-owned holding company in Singapore.
What is Considered a Holding Company in Singapore?
A holding company in Singapore is established to own and manage shares or assets in other companies. The main purpose is ownership and control rather than being involved directly in the business.
Additionally, Singapore offers foreign-owned companies a favorable tax environment with multiple tax incentives and a transparent legal regulatory framework for businesses.
The holding company oversees its subsidiary companies by making major policy decisions, developing strategic business plans, and recruiting key personnel. To be considered a holding company in Singapore, your company must hold ownership of 50% or more of your subsidiaries’ assets.
Types of Holding Companies in Singapore
In Singapore, holding companies are divided based on their business sectors. Each type of holding company will have its own set of services and responsibilities. Below you will find the most notable types for foreign investors:
| Holding Company Type | Details |
| Investment Holding Company (IHC) | Set up to own and manage investments – Does not engage in business operations – Generates income through dividends, interest, or capital gain from investments (shares, bonds, real estate, financial assets) |
| Financial Holding Company (FHC) | – A type of bank holding company (BHC) – Offers non-banking financial services that are not permissible for ordinary BHCs – Services include insurance underwriting, merchant banking, investment advisory services, securities dealing, etc. |
| Intellectual Property Holding Company (IPHC) | – Holds and manages IP assets which include patents, trademarks, and copyrights – Licenses IP rights to third parties for generating income in royalties – Singapore has a strong IP protection regime – appropriate for setting up an IPHC. |
Requirements for Registering A Holding Company in Singapore
If you are starting a holding company in Singapore, you are required to:
- Have at least 1 resident director above 18 years old who has to be either a Singaporean citizen, Singapore PR, Singapore EntrePass Holder, or a person with an Employment Pass and Letter of Consent
- Appoint a company secretary within 6 months of setting up your company
- A registered Singaporean office address
- A company name approved by ACRA
- One or more shareholders
Emerhub can lend you a hand in meeting the requirements for company registration in Singapore by helping you find an office in Singapore, verify your company name with ACRA, and acquire all the necessary business licenses and permits to operate in the country.
Ensuring Compliance For Your Holding Company in Singapore
Annual Filing Requirements in Singapore
All holding companies are required to file an annual income tax return with the Accounting and Corporate Regulatory Authority (ACRA) within 7 months after the end of the financial year. Additionally, a tax return should be filed with the Inland Revenue Authority of Singapore by the 30th of November each year.
The tax return reports the company’s income, expenses, and tax computations for the previous financial year. When it comes to taxes, Singapore has a flat corporate tax rate of 17% and offers various tax incentives depending on your business activities.
An investment holding company in Singapore can enjoy tax deductions based on its investments that are not for trading purposes. At Emerhub, our dedicated team of local experts can help you navigate the complexities of tax compliance and ensure that you submit the required financial reports based on your specific industry.
Maintaining Statutory Registries for Your Holding Company
It is mandatory for all companies in Singapore to maintain several statutory registers at their company’s registered address or prescribed location. These registers must be updated within 14 days of any changes and be available upon request for inspection.
The registries include:
- Register of shareholders/members
- Register of charges
- Register of directors
- Register of directors’ shareholdings
Complying with Audit Requirements
Companies in Singapore must prepare financial statements per the Singapore Financial Reporting Standards. This provides a fair view of the company’s financial position and performance.
Furthermore, companies that meet the following criteria at the end of the financial year are required to have their company audited by an independent auditor:
- Revenue exceeding SGD 10 million
- Total assets exceeding SGD 10 million
- Have more than 50 employees
Our team at Emerhub can assist in partnering you with a reliable independent auditor in Singapore for your company audits. You can book a free consultation with our business advisors to get more information on the process.
How to Register A Holding Company in Singapore
To set up a holding company in Singapore, you must incorporate it as a limited liability company (LLC), limited partnership, trust, or foundation. Our local team at Emerhub can handle your company registration by compiling the necessary documents and managing all the key steps as detailed below:
- Choosing A Company Name & Obtaining Approval
Choose a company name according to the naming guidelines implemented by Singapore’s Accounting and Corporate Regulatory Authority (ACRA). Our team will pay the fee of SGD 15 and the name can be reserved for up to 120 days while we finalize the registration.
- Incorporate Your Company
The registration fee is SGD 315 upon application, which should be approved within 1-3 business days. This fee is included in Emerhub’s company registration service. Once approved, a certificate of incorporation will be issued and a free business profile will be automatically created on the website.
- Open A Corporate Bank Account
An important aspect of starting a holding company is to open a corporate bank account. This allows the company to make investments and receive funds from its subsidiaries.
In need of assistance with starting a holding company in Singapore? Fill out the form below and our local experts will get in touch.
