Given its business-friendly landscape, Singapore is one of the melting pots for all investors, foreign businesses, and entrepreneurs. The grants, tax incentives, and other business programs allow companies to enjoy more profitability and growth.
If you’re also looking to register your business in Singapore, you can hire a corporate services provider who’ll take care of everything on your behalf. Continue reading this post to consider various company registration options as a foreign business.
Company Registration Options in Singapore
Singapore boasts the reputation of being a strategic gateway in the South-East Asian market. Being a non-resident, you can set up your business in Singapore by taking a look at various options. Here are three options available to foreign businesses trying to expand their operations in Singapore:
1. Subsidiary Company
A subsidiary is a locally incorporated company whose major shareholder is a foreign or another local company. Subsidiaries are private limited companies by nature.
Singapore allows foreign businesses to incorporate their subsidiary company and its 100% of tales. However, a subsidiary is a separate entity from its parent company under Singaporean law. Hence, it’s treated as a local company in Singapore. This also means a foreign parent company cannot hold the assets, liabilities, and debts of its subsidiary company.
A subsidiary company in Singapore is a tax-efficient entity due to its resident status in Singapore, making it eligible for government incentives, attractive tax treaties, and more access to local funds. Small and medium-sized businesses are advised to set up their subsidiary company.
Consider the following points when starting a subsidiary in Singapore:
Under the Singapore Companies Act, companies must appoint a qualified resident director or someone with Employment Pass or permanent residence.The parent company and subsidiary company cannot have the same business name. However, ACRAcan make exceptions.The subsidiary company should have a registered and physical Singapore address with statutory documents kept in the office.2. Branch Office
A Singapore brand office is also a registered legal entity that operates as an extension of the parent company. Foreign businesses can open a branch office in Singapore to conduct business activities falling within the business scope of their parent company. The capital and earnings of the branch office can be repatriated.
Branch offices are taxed for profits generated from business operations in Singapore. They are also considered non-resident entities, so the foreign head office is held liable for omission or commission committed by the branch office in Singapore.
As a non-resident business, the branch office won’t enjoy the tax exemptions that subsidiary and local companies do. Medium to large-sized companies can register their business in Singapore as branch offices if they have specialized operations in various locations and want to conduct an array of business activities in Singapore.
Note the following things when opting for a branch office setup:
Both foreign parent company and branch office should have the same name which should also be pre-approved before company registration.The branch office should appoint a minimum of one authorized resident representative under the Singapore Companies Act. The representative will accept notices and services of process.The branch office should have a physical, registered Singapore address for the business.3. Representative Office
A Singapore representative office is another way foreign companies can set up business in Singapore. It’s a temporary setup that allows foreigners to manage business affairs and expand in Singapore without business activities.
Representative offices are not separate legal entities, so they can’t lease warehouses, sign contracts, open letters of credit, or raise invoices on behalf of or directly for their foreign parent company. The parent companies are liable for all activities in Singapore.
Individuals or companies whose main objective is to explore Singapore’s business landscape are advised to opt for a representative office setup before investment. Consider the following points when choosing this form of setup:
A representative office must have staff from the parent company’s head office.A representative office can’t hire more than five local staff workers.A representative office can only continue its business operations for up to three years. Later, they should upgrade to either subsidiary or branch office setup.Representative offices in the insurance, banking, or financing sector should register with the MAS (Monetary Authority of Singapore). Those operating in other industries can register with IE Singapore (International Enterprise Singapore).Are you ready to register your company in Singapore? Hire Provisor Corporate Services Pte Ltd for company registration services. They’re a one-stop platform for all corporate services, from company registration and tax advisory to account opening and accounting services.
Experts at Provisor help you set up business Singapore for success so you can focus on the core aspects of your business. Reach out to their team for further assistance today!
Author’s Bio
The author is a company and tax advisor in Singapore helping foreigners set up their businesses in the country by ensuring compliance, tax filing, and more.