article/Branch Office

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.

Packages & Fees

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

Branch Office The Singapore branch office must bear the same name as the head office, clearly stating that it is a branch office, and the name is subject to the approval of the Registrar of Company. It cannot, however, be identical or similar to another business name or existing trademark, or contain any offensive or vulgar words.
Authorised It must appoint at least one authorised representative who are either a Singapore citizen, PR or foreigner with a valid work pass.

Business Activities It can only conduct the same business activities as the parent company.
Registered Address It must have a registered office address in Singapore and cannot be a PO Box.

Pros and Cons of a Private Limited Company

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.

Note

VOPlus can advise you on the most suitable type of business entity for your business and help you convert a private limited company in Singapore promptly. Contact us today for a consultation!