Singapore Subsidiary Registration Key Steps to Easily Enter the Mainland Market

Registration of a Singapore Subsidiary A Smooth Pathway to the Chinese Market

In the context of global economic integration, an increasing number of Singapore-based companies are turning their attention to the vast and promising Chinese market. As a key financial and business hub in Southeast Asia, Singaporean enterprises benefit from mature management practices and internationalized operational models. Meanwhile, the Chinese market, with its massive scale and growth potential, has become a top destination for companies expanding overseas. However, how to legally and compliantly enter the Chinese market remains the first major hurdle for many Singaporean businesses.

Registering a Singapore subsidiary in mainland China has become a common and efficient strategy for entering the Chinese market, serving as a strategic springboard for overseas expansion.

1. Why Do Singaporean Companies Choose to Establish Subsidiaries in China?

In recent years, economic and trade cooperation between China and Singapore has continued to deepen. According to data released by Enterprise Singapore, Singapore's non-oil exports to mainland China grew by more than 10% year-on-year in 2025, with electronics, precision engineering, and chemical products leading the way. At the same time, China has become one of Singapore's largest trading partners. In this context, more and more Singaporean companies are considering establishing subsidiaries in China as a way to enter the market.

Compared to setting up a joint venture or a wholly foreign-owned subsidiary, establishing a subsidiary offers several advantages

1. Simplified Process The establishment procedure is relatively simpler, especially in terms of approval processes and capital requirements.

2. Lower Costs A subsidiary does not require independent registered capital, resulting in lower initial investment.

3. Easier Management As a branch of the parent company, the subsidiary has a more centralized management structure, which facilitates direct control and operation by the parent company.

4. Strong Brand Continuity The subsidiary can directly use the parent company's brand and commercial reputation, helping to quickly gain market traction.

2. Basic Procedures for Registering a Singapore Subsidiary

To set up a Singaporean subsidiary in mainland China, the first step is to register the company in Singapore and ensure it holds valid business qualifications. Then, in accordance with Chinese laws and regulations, an application must be submitted to establish a foreign-invested enterprise branch i.e., a subsidiary in China. The main steps are as follows

1. Prepare Company Documents Including the Singapore company’s certificate of incorporation, articles of association, board resolutions, and identification of legal representatives.

2. Select a Registration Location Choose an appropriate city or economic development zone in China based on the nature of the business and market positioning. First-tier cities like Shanghai, Shenzhen, and Guangzhou offer strong support for foreign enterprises.

3. Submit Application for Establishment Submit the required documents to the local Administration for Market Regulation and obtain approval from the commerce authorities.

4. Obtain Business License and Tax Registration After approval, the subsidiary must complete procedures such as obtaining a business license, tax registration, and opening a bank account.

5. Recruitment and Operations Once registration is completed, the company can proceed with hiring staff, leasing office space, and building sales channels.

Throughout the process, it is advisable for companies to seek assistance from professional service providers to ensure compliance and efficient execution.

3. Policy Support and Improved Business Environment

In recent years, China has continuously improved its business environment to enhance convenience for foreign investors. In 2025, the Ministry of Commerce issued a policy titled Further Optimization of the Foreign Investment Environment and Strengthening Foreign Investment Attraction, which introduced a series of measures, including streamlining the establishment process for foreign enterprises, strengthening intellectual property protection, and promoting financial openness. These policies provide more favorable conditions for Singaporean companies entering the Chinese market.

Moreover, many cities and regions across China have launched supportive policies for foreign enterprises. For example, areas such as Qianhai in Shenzhen, the Shanghai Free Trade Zone, and the Hainan Free Trade Port offer various forms of support, including tax incentives, rent subsidies, and talent attraction programs.

Singaporean companies can choose the most suitable location based on their business characteristics to maximize the benefits of these favorable policies.

4. Success Stories Practical Experiences of Singaporean Companies in China

In recent years, numerous Singaporean companies have successfully entered the Chinese market through the establishment of subsidiaries. For example, Grab, a well-known Singaporean tech company, announced in 2025 its plans to expand its smart mobility and logistics services into several Chinese cities, using a subsidiary model for localized operations. The company noted that the subsidiary structure allows for faster adaptation to the Chinese market while maintaining close ties with the parent company.

Another example is Greenloop, a Singaporean environmental technology company that established a subsidiary in Suzhou in 2025, focusing on industrial wastewater treatment solutions. The company’s executives highlighted Suzhou as a choice due to its strong environmental industry foundation, strong support for foreign enterprises, and good bilateral cooperation with Singapore.

These success stories demonstrate that establishing a subsidiary in China is not only feasible but also adaptable and sustainable.

5. Challenges and Recommendations

Although establishing a subsidiary is a relatively convenient entry method, Singaporean companies still need to be mindful of the following points

Compliance Risks China’s legal system differs to some extent from Singapore’s, and companies must strictly comply with local laws and regulations during registration and operations.

Localization Adaptation The Chinese market has unique consumer habits and a competitive environment, requiring companies to adjust their products, services, and marketing strategies accordingly.

Talent Recruitment and Management Building an efficient local team is key to the success of a subsidiary. Companies should focus on talent acquisition and cultural integration.

To reduce risks, it is recommended that companies conduct thorough market research and feasibility analysis before entering the market, and collaborate with local legal advisors, financial consultants, and other professional institutions to ensure compliance and long-term sustainability.

Conclusion

For Singaporean enterprises, establishing a subsidiary in China is a highly effective and viable path for overseas expansion. Against the backdrop of deepening economic and trade relations between China and Singapore, this model not only facilitates business growth but also strengthens bilateral economic ties. As long as companies seize policy opportunities, plan strategically, and implement localized operations effectively, they can establish a solid foothold in the Chinese market and achieve long-term development.