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.
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.
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!