Branch Office Singapore

Foreign companies interested in establishing a presence in Singapore can choose the branch office which is a legal entity created to complete the same activities as the parent company. From a legal point of view, the branch office cannot undertake other undertakings than the parent company’s, however, it will benefit from the various incentives granted by the Singapore government. The opening of a branch office in Singapore is quite simple and straight forward.

Our company formation specialists in Singapore explain the requirements related to opening a branch office in the city-state. We specialize in offering complex company registration solutions to both natural persons and corporations interested in investing in Singapore.

The main characteristics of a branch office in Singapore

As mentioned above, the branch office in Singapore can be created by a foreign company. The other alternative would be for the foreign business to establish a subsidiary company in Singapore.

Foreign companies must choose one of these two business forms in order to conduct any type of commercial activities in a legal manner in Singapore.

The branch office in Singapore can be characterized as:

• –          a business form which depends entirely on the foreign company setting it up;
• –          it must be registered with the Accounting and Corporate Regulatory Authority, like any other business form;
• –          the foreign company will bear the entire responsibility for the branch office’s obligations;
• –          the parent company is in charge of obtaining all the licenses and authorizations for the branch office to operate;
• –          from a taxation point of view, the branch office will be taxed only on the income generated in Singapore.

If you want to open a company in Singapore, our local consultants can offer assistance in choosing the right type of entity and registering it. We can also help you if you want to set up a branch office in Singapore.

Singapore branch office incorporation requirements

The Company Law provides for the registration requirements when opening a branch office in Singapore. A foreign company must consider the following when deciding to establish a branch in Singapore:

• –          the branch office must have the same name as the branch office and the name must be reserved with ACRA;
• –          the foreign company must appoint at least one company representative for the branch – he or she must be a natural person and a resident of Singapore;
• –          the branch office must have a legal or registered address in Singapore, just like a local business;
• –          the branch office does not need to have its own Memorandum and Articles of Association, as the parent company’s incorporation papers will suffice.

With respect to the local agent appointed for the Singapore branch, it should be noted that the foreign company can appoint a person in the company who will obtain a residence permit for Singapore.

The Singapore company formation process of a branch office

A foreign business seeking to open a company in Singapore under the form of a branch office must prepare a set of documents and file them with the Accounting and Corporate Regulatory Authority in the city-state. The parent company must submit a copy of its Certificate of Registration and Articles of Association, a declaration which must contain information about the person appointed as a representative for the branch office and his or her duties towards the company, information about the registered address for the branch and the parent company’s latest audited financial statements.

All documents must be translated into English before being filed with the Singapore authorities.

After the branch office registration papers are filed, the company must also open a bank account with a bank in Singapore.

It is necessary for the foreign company to appoint a local agent to complete the registration process of a branch office in Singapore.

Our company registration specialists in Singapore can help with the incorporation of a branch office.

Why open a branch office in Singapore?

Often, company representatives wonder why they should choose to set up a branch office instead of a subsidiary company. Here are a few of the advantages a branch office in Singapore offers:

1.         the registration procedure of a branch office is much simpler and faster than any other company’s incorporation process;
2.         there are no share capital requirements for creating a branch office in Singapore;
3.         branch offices benefit from the coverage of Singapore’s many double taxation agreements;
4.         there is no need to appoint a company secretary for a branch office in Singapore.

Even if from a taxation point of view the branch office in Singapore is treated as a non-resident company, the corporate tax in the city-state is set at 17% which is lower than in other Asian countries.

If you want to open a company in Singapore and need guidance, including for the establishment of a branch office, do not hesitate to contact us.