Branch offices can be registered by foreign companies that wish to settle in Singapore. As compared to the option of opening a subsidiary, the branch office is not considered a legal entity on its own and is simply part of the foreign company registering it. The biggest perk of being part of the parent company is that the liability of all the undertakings of the branch office in Singapore will rest with the foreign entity. The branch office in Singapore will not be subjected to any tax exemptions unless there is a management board or registered office in the country. Read some very helpful details in this regard here: how to open branch office in Singapore
Requirements to fulfill
There are certain requirements that have to be fulfilled for setting up a branch office in Singapore. Since it is mainly an extension of the foreign firm, the name of the branch office should be the same as that of the parent company. The Company law in Singapore states that two resident agents have to complete the registration process of the branch office and conduct other activities of its behalf. In addition, the branch office also needs to have a registered office in the country. Any undertakings can be conducted by the Singapore branch office as the parent company and it also has the right to repatriate the capital and earnings. However, the Singapore branch office will only be taxed for the income it earns in the country.
A foreign company needs to hire a professional firm for company incorporation and registration. The company’s name is the first thing that has to be submitted to the Trade Register for approval when opening a branch office in Singapore. Unless it is similar to another company, the name will get approval quickly. Next, the registration file has to be submitted and this doesn’t take longer than 2 days. An email notification will be sent by the Companies Registrar for confirming the new Singapore branch office once you have finished the registration. An incorporation certificate can also be issued upon request; otherwise, the notification is enough for opening a bank account and registering for tax purposes.
The documents that need to be submitted for registration of a branch office in Singapore include:
- Notarized copies of the foreign company’s Certificate of Incorporation
- Notarized copies of the parent company’s Articles of Association
- Information about the directors of the parent company
- A resolution selecting two agents for acting on behalf of the Singapore branch office ad a statement issued by the parent company regarding their powers
- Documents of the registered office address of the branch in Singapore
Like all other companies, the same compliance requirements will be followed by the branch office in Singapore. This means that the name and address will be available to the public and it should also be engraved in every office and all documents used in commercial activities. Furthermore, the Accounting and Corporate Regulatory Authority (ACRA) will have to be notified if there are any structural or management changes made to the branch office.