The excellent location and attractive tax incentives make Singapore the preferred location for overseas companies to do business. The various options are – opening branches, representative offices or subsidiaries. The country also has a free immigration policy.
If companies want to set up a company in Singapore, they will also receive financial assistance.
Branches – The registration of branches is done by ACRA and is considered an extension of foreign companies. This is the most unpopular choice for foreign companies because
Headquarters accounts must be submitted for tax purposes. Many companies may not be accustomed to doing so.
The head office assumes all responsibility for the actions of the branch
Branch companies cannot apply for local tax incentives
The name of the branch office and the foreign office must be the same and should be approved by the ACRA prior to registration. The branch must appoint two agents residing in Singapore. Branches can repatriate all their income and funds. Only the portion of the income obtained from the local business is taxed at the local rate.
Subsidiary – This is the preferred option for foreign companies to conduct business because:
Its liabilities will not be transferred to the parent company. It is considered an independent company.
It enjoys local tax benefits.
It can have a different local name than the parent company.
One or more directors need to be appointed and at least one director must be a local resident.
Representative office – used to conduct business in the country without any commercial activities. It does not have any legal status and cannot sign any contract.
It can promote the parent company
It can negotiate but can't agree on the deal
The parent company is responsible for the activities of the office.
It must be equipped by at least one representative at headquarters
Singapore International Enterprise Development Agency (IE Singapore) is the registration authority for manufacturing, commercial services, commercial and other representative offices. Banking, finance, and insurance are required to be registered with the Singapore Monetary Authority (MAS).
A1crop.com.sg will help you on the company registration process. For more details, visit A1corp.com.sg for Company registration
