Frequently asked questions

Yes. The Singapore company still needs one director ordinarily resident in Singapore. On the India side, the Indian company makes an overseas direct investment and files Form ODI through its bank before the first remittance.

Yes, under the Liberalised Remittance Scheme (USD 250,000 per person per financial year), but the rules for individuals are narrower, including limits on investing in financial services and on layering subsidiaries. Check the structure with an Indian CA first.

Incorporation itself takes days once documents are ready. Allow three to six weeks in total, mainly for apostilled documents from India, the ODI bank filing and the Singapore bank account.

Not while they stay in Singapore, unless the company is effectively managed from India and becomes Indian resident under the POEM test. Dividends paid to India are taxed in India.

When the Indian company buys existing shares of a foreign company. A fresh subscription to a newly incorporated Singapore company does not need one.

The Annual Performance Report by 31 December and the FLA return to the RBI by 15 July, every year, plus reporting of further investments, loans or disinvestment through the bank.

Its total financial commitment to foreign entities is capped at 400% of its net worth as per the last audited balance sheet.

Yes, as part of its ODI financial commitment, within the 400% of net worth ceiling, reported through the same bank under the same UIN.

It can usually be regularised by paying a late submission fee through the bank. Until it is cleared, the bank will not process further investment under that UIN.

Usually yes. It matches the Indian parent, so consolidation, the APR, the FLA return and transfer pricing all use the same period.

When the Singapore company is the top holding company with foreign investors, or belongs to a group that closes in December.

Yes, up to 18 months from incorporation. Check what the parent's auditors need before stretching it.

Decisions made by default at incorporation: a calendar year end that does not match the Indian parent, a nominee director as the whole substance plan, and remitting money before Form ODI.

Agree structure, year end and reporting framework; name directors, secretary and Corppass administrators; start the ODI and bank processes; and draft intercompany agreements and an authority matrix.

At least one director ordinarily resident in Singapore, one shareholder, a Singapore registered office address, and a company secretary appointed within six months of incorporation.

Once documents and identity checks are complete, a straightforward incorporation is often approved within a day. Opening the bank account usually takes longer, so start it in parallel.

Yes. There is no local shareholding requirement. The company still needs at least one director who is ordinarily resident in Singapore.

Government fees are S$15 for the name application and S$300 for incorporation. Service fees for the secretary, registered office and due diligence are extra and vary by provider.

Yes. Since 16 June 2025 companies file their registers of nominee directors and nominee shareholders with ACRA. For companies incorporated from that date, this happens on the day of incorporation. Only the nominee status is public.

S$15 for the name application and S$300 for incorporation. The annual return costs S$60 a year. Corppass is free.

Services: company secretary, registered address, bookkeeping, financial statements and XBRL, tax filing, and above all whether a statutory audit is required.

Someone whose usual place of residence is Singapore: a citizen, permanent resident, or a pass holder such as an Employment Pass holder living here, subject to their pass conditions.

Yes. A nominee director is a full director in law with the same duties and liabilities. Since 9 June 2025, only an ACRA-registered corporate service provider may arrange one, after fit and proper checks.

Not for a foreign-owned investment holding company. From 2025, IRAS asks for a Singapore-based executive director who is not a nominee, a key employee, or management by a related Singapore company.

A salary at or above the qualifying minimum for their age and sector, and at least 40 points under COMPASS.

Revised COMPASS salary benchmarks apply to new applications from 1 January 2027 and to renewals of passes expiring from 1 July 2027.

For new applications from 1 January 2027: S$6,000 a month at age 23 or below, rising to S$11,500 at 45 and above. In financial services, S$6,600 rising to S$12,700.

Firms with fewer than 25 PMETs get 10 points each on diversity and local employment by default. The candidate needs 20 more from salary, qualifications or the shortage occupation bonus.

Candidates earning a fixed monthly salary of at least S$22,500, overseas intra-corporate transferees, and those filling a role for one month or less.

Many, yes: the annual return on Bizfile, Form C-S on myTax Portal and GST returns. The company secretary must still be resident in Singapore and cannot be the sole director.

For groups and cross-border structures, treaty claims, incentives, transfer pricing, POEM and substance, and valuation.

A licensed Indian chartered accountant firm. ODI, APR, FLA, Indian tax and transfer pricing filings are made by the Indian entity and its Indian advisers.

A law firm. Drafting legal documents is reserved for lawyers in Singapore.

Under section 147 of the Income-tax Act, 2025, qualifying IFSC units get a 100% deduction for 20 consecutive years out of 25, with 9% minimum alternate tax for companies earning in convertible foreign exchange.

9% on profits above AED 375,000, with 0% available on qualifying free zone income.

No. It may research the market, build contacts, handle enquiries and attend trade shows, but must not generate revenue for the parent.

Up to three years in total. After that the parent must register a branch or a subsidiary, or close the office.

Its Singapore accounts must be audited unless ACRA grants relief, and the parent's own financial statements must be filed every year as well.

A subsidiary that is genuinely managed and controlled in Singapore. A branch usually cannot obtain a Singapore certificate of residence.

Hong Kong: 8.25% on the first HK$2 million and 16.5% after. Singapore's headline rate is 17%, but its exemptions cut the effective rate on smaller profits.

Profits sourced outside Hong Kong are not taxed if the claim is supported, but foreign passive income of group companies is caught by the FSIE rules unless conditions are met.

Hong Kong caps Indian withholding on dividends at 5%, against 10% or 15% for Singapore. Interest, royalties and technical fees are similar.

Singapore needs one director ordinarily resident in Singapore. Hong Kong has no director residence rule but needs a Hong Kong-based company secretary.

ECI within 3 months (unless waived), AGM within 6 months, annual return within 7 months, and the corporate tax return by 30 November of the following year.

Consolidation, the Annual Performance Report (31 December), the FLA return (15 July) and the transfer pricing report. Late Singapore accounts make all of them late.

A directors' resolution in writing: a resolution circulated and signed by the directors without a meeting. It is valid if the constitution allows it and the required number of directors sign.

For strategic matters such as budgets, financing, acquisitions, dividends and senior hires. Meetings show deliberation, and where it happened.

Adopt a delegation of authority so a Singapore-based director or manager can act within limits, call short ad hoc meetings for urgent strategic matters, and keep written resolutions for routine items.

Pass first board resolutions, issue shares and set up registers, set up Corppass with two administrators, open the bank account and arrange GIRO, and create role-based email IDs.

When taxable supplies exceed S$1 million in a calendar year, or are expected to in the next 12 months. Voluntary registration is possible earlier.

No. The secretary must also live in Singapore and be appointed within six months of incorporation.

Within 14 days, with ACRA.

Plan it so the company is never without a secretary: appoint the new secretary, then let the old one resign, and file the change with ACRA within 14 days.

The ledger, bank reconciliations, fixed asset register, prior financial statements, tax computations, IRAS correspondence, and details of losses and capital allowances carried forward.

Not if it is wholly owned (or minority owners do not object), unlisted, not filing with a securities regulator, and a higher parent publishes qualifying consolidated accounts.

Under Singapore FRS, generally yes if they are publicly available and consolidate the group. Under SFRS(I), the parent's accounts must comply with SFRS(I) or IFRS, and Ind AS has carve-outs, so confirm with your auditor.

Private companies that meet two of three criteria for the past two financial years: revenue up to S$10m, total assets up to S$10m, up to 50 full-time employees. If part of a group, the whole group must also qualify.

Usually yes. The group test uses the parent's consolidated numbers, foreign entities included.

ACRA announced a review on 26 February 2026. No new thresholds are in force yet.

Most do. Smaller, non-publicly accountable companies can file simplified XBRL, solvent exempt private companies are not required to file, and some companies file a PDF copy.

Yes, private companies can dispense with AGMs by resolution. The annual return is still due within 7 months of year end.

A flat 17%, reduced by the start-up or partial exemption.

Usually not. It needs at least one individual shareholder holding 10% or more, so a wholly corporate-owned subsidiary falls under partial exemption instead.

50% of tax payable, with a S$2,000 cash grant for active companies that employed a local employee in 2025. The rebate and grant together are capped at S$40,000. The rate was raised from 40% on 7 April 2026.

For the company's first three Years of Assessment, provided it meets the conditions in each of those years.

Form C-S (Lite) for revenue of S$200,000 or less, Form C-S for revenue of S$5 million or less, and Form C otherwise, all by 30 November.

Within three months of the financial year end.

When annual revenue is S$5 million or less and the ECI is nil.

Only if annual revenue exceeds S$5 million. A company with revenue of S$5 million or less and nil ECI does not need to file.

IRAS may issue an estimated Notice of Assessment. The tax on it must be paid within one month even if the company disagrees, and the company loses the GIRO instalment benefit.

When taxable supplies exceed S$1 million in a calendar year, or are expected to in the next 12 months. GST is 9%.

Yes: newly incorporated companies registering voluntarily from 1 November 2025, and all new voluntary registrants from 1 April 2026.

Taxable supplies: standard-rated and zero-rated sales. Exempt supplies such as most financial services and residential property, out-of-scope supplies and sales of your own capital assets are left out.

You must account for the GST you should have charged from the date you were liable, and you may face a penalty of 10% of the GST due and a fine of up to S$10,000.

Usually every quarter. The return and payment are due one month after the end of each quarter.

At least one month before a non-citizen employee stops work, is posted overseas, or leaves Singapore for more than three months, whichever comes first.

All money due to the employee from the date it knows of the departure, until IRAS issues the clearance directive.

Only when leaving Singapore permanently, being posted overseas, or in the other listed cases. A permanent resident who stays usually does not.

File immediately and explain the reason. Late or missing filings can draw a fine of up to S$5,000.

Place of effective management: where key management and commercial decisions for the business as a whole are in substance made. If it is in India, India can treat a foreign company as Indian resident and tax its worldwide income.

India asks whether the company is really run from India. Singapore asks whether control and management is exercised in Singapore. The same facts are tested by both, from opposite ends.

Most often because decisions are really made in India: Singapore board meetings that rubber-stamp, directors all living in India, approvals by email from the parent, and no evidence kept.

The CBDT guidelines exempt companies with turnover or gross receipts of INR 50 crore or less. They were issued under the 1961 Act; confirm with an Indian tax adviser how they apply under the Income-tax Act, 2025.

A tax residency certificate (the IRAS certificate of residence) and Form 41 on the Indian e-filing portal, which replaced Form 10F from 1 April 2026.

Online through the IRAS myTax Portal, using Corppass. Each certificate covers a set period, usually a calendar year.

10% under the India-Singapore treaty for royalties and fees for technical services, provided the Singapore company is the beneficial owner and meets the treaty conditions. Without treaty relief the domestic rate is typically 20% plus surcharge and cess.

Part A, yes: every Indian constituent entity of an international group files it, with no threshold. Part B applies above INR 500 crore group revenue and INR 50 crore of international transactions.

Forms 56 to 60 under the Income-tax Act, 2025, from 1 April 2026. Form 59 is the country-by-country report.

No. Singapore CbCR applies only to Singapore-headquartered groups with revenue of at least S$1,125 million. Pillar Two registration may still apply to large groups.

When gross revenue exceeds S$10 million and related party transactions exceed the thresholds: S$15 million for goods and for loans, and S$2 million for each other category from YA2026.

A fine of up to S$10,000, and a 5% surcharge on any transfer pricing adjustment IRAS makes.

Singapore accepts cost plus 5% for routine support services. India applies its own benchmarks to the Indian service provider, and will often expect a higher mark-up, so price for both sides.

At exercise, on the fair value minus the exercise price, as salary. Gains on sale are capital gains.

Form OPI through its bank within 60 days of each half-year end, where shares are held as overseas portfolio investment.

The Indian employer, through payroll, in the month of exercise, on the fair market value minus the exercise price.

No. Singapore has a one-tier system and does not withhold tax on dividends paid to non-residents.

As income of the Indian company at its applicable rate. The old 15% concessional rate for dividends from foreign subsidiaries ended after tax year 2022-23. Confirm treaty credit with your Indian CA.

On S$1 million of chargeable income, about 36.6% before Singapore rebates: about 15.3% in Singapore after the partial exemption, then 25.168% in India on the dividend, for an Indian company on the 22% regime.

Usually by an inbound cross-border merger of the Singapore company into the Indian company under section 234 of the Companies Act, 2013, through the NCLT or the fast-track route.

On 29 May 2026 the RBI amended the FEMA cross-border merger regulations so fast-track approvals by the Regional Director fit the framework.

Usually both: a traditional bank as the main account for GIRO, payroll, balances and credit, and a digital account for foreign currency, FX and team spending.

Generally no. IRAS GIRO direct debits do not work with virtual accounts, so tax instalments need a bank account.

Only if it needs credit. Banks often ask young companies for a director's personal guarantee; a spend card funded from the company balance usually avoids that.

An interbank direct debit arrangement. You authorise an organisation once, and it collects agreed payments from your bank account on their due dates.

Up to 10 interest-free monthly instalments on GIRO. Filing ECI early earns more instalments.

Yes. Section 199 of the Companies Act allows records to be kept outside Singapore, provided statements and returns are sent to and kept in Singapore and are open to directors.

Not on its own: the CBDT guidelines treat support functions like accounting as insufficient by themselves. For companies without an active business abroad, where accounting records are kept is a secondary factor, so it adds to other India-side facts.

When the company claims treaty benefits or tax incentives, is a holding company with passive income, or has most directors and managers in India.

Up to two. Appoint both from day one.

Your Corppass Admin creates a Singpass Foreign user Account for them, using their foreign ID details and email.

Never. Authorise the accountant for the specific e-services they need, and keep the Approver role in IRAS with the company.

A role-based address on your own domain, such as finance@, delivered to at least two people. Never a personal inbox.

Use a company-owned phone number held by finance, add a backup number where possible, and prefer authenticator apps over SMS.

Bank feeds, receipt capture, recurring invoices, payroll with CPF filing, tax and CPF payments by GIRO, and deadline reminders.

Payment approvals above a limit, changes to supplier bank details, filing returns without review, board decisions, and granting system access.

After an acquisition (purchase price allocation), for impairment testing, for share options, and for fundraising, share transfers and exits.

Indian rules name the signatory, for example a SEBI-registered merchant banker, a registered valuer or a chartered accountant, depending on the purpose.

For the accounting expense at fair value, for accurate tax reporting on employees' gains, and to show investors and staff that grants were priced fairly.

Not directly. Investors usually bought preference shares with extra rights. Options are over ordinary shares, which are worth less, so the round price is allocated across share classes first.

Generally at exercise, on the market value of the shares minus the exercise price. If the shares carry a selling restriction, tax is usually measured when the restriction lifts.

At each grant round if the last valuation is about a year old, and immediately after a priced funding round or other major event.

Up to 12 months from the acquisition date.

No. It is tested for impairment every year.

At least annually, and whenever there is an indicator of impairment.

No.

S$20 million in designated investments, at application and at every year end. 13U requires S$50 million.

At least two for 13O and three for 13U, with at least one not a family member.

No. EDG, PSG and MRA ceased on 29 September 2026. New applications go to the EDGE Grant.

Up to 70% for SMEs and up to 50% for non-SMEs, capped at S$100,000 a year across activities.

No. A VCC must always be managed by a fund manager regulated by MAS.

No. It is kept by the VCC and available to regulators and law enforcement, but not open to public search.

No. Every VCC is audited every year, whatever its size.

Yes, on the same spending and staffing conditions as a company.

India's Income-tax Act, 2025 from 1 April 2026 (new section and form numbers), ACRA's audit exemption review, EDGE replacing EDG and PSG, and the 2027 COMPASS benchmarks.