What is the difference between a Singapore company and a subsidiary?

The legal form is the same. A subsidiary is simply the term for a Singapore private limited company (Pte. Ltd.) whose shareholder is another company, such as a Korean parent company, and its incorporation requirements and annual obligations are generally the same as for any other company.

• Company classification: If there is a corporate shareholder, the company generally does not qualify as an Exempt Private Company (EPC) and is classified as an ordinary private company.
• Audit: Audit exemption is assessed against the small company criteria, and if there is a parent company, the whole group, including overseas entities, must also meet those criteria. Depending on the size of the group, an audit may be required.

Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.

The Lee Kim Alliance accounting team provides audit consultation.

As of November 2026, source: ACRA