Incorporation

Branch Office

Apart from setting up a subsidiary company, foreign companies wishing to stake a presence in Singapore can also consider branch office as an option. A registered branch office in Singapore is an extension of its foreign parent company registered outside of Singapore.

001 Branch Office

Characteristics

A branch office is not a separately incorporated entity; its liabilities extend to its parent company. The implication of this structure is that any liability incurred by the Singapore branch office is born by the foreign head office. A Singapore branch office is also a non-resident company for tax purposes, which means that it is not eligible for any prevailing tax incentives for newly set up or resident companies. The portion of the profit that is derived from revenues attributable to the operations carried out in Singapore is subject to prevailing local corporate tax.

A branch office is suitable for foreign companies that are looking to expand their operations in Singapore.

Compliance Requirements

Pros and Cons of Singapore Branch Office

  • It is able to conduct business in Singapore freely, and profits can be repatriated.
  • It is quick and easy to register.
  • As a branch office, it is able to retain its brand identity, which is favourable if the brand is already highly recognised here.
  • The branch office does not have limited liability, and its risks, including all the losses and debts, are extended to its parent company.
  • As a non-resident business entity, it cannot enjoy local tax incentives and exemptions.
  • Its business activities are limited to those of its parent company.

 

002 Branch Office

Note

VOPlus can advise you on the most suitable type of business entity for your business and help you set up a branch office in Singapore promptly. Contact ustoday for a consultation!