Foreign Company Registration Options in Singapore: A Concise Guide

Embark on your Singapore business journey confidently with insights into subsidiary companies, branch offices, and representative offices for foreign entity registration.

Subsidiary Company

1. Considered a locally incorporated private limited company.
2. Allows full foreign ownership, offering flexibility in shareholding.
3. Functions as a separate legal entity, safeguarding the parent company’s assets.
4. Eligible for tax benefits, including favourable treaties and government incentives.

Key requirements:

• Appointment of directors, including at least one local resident (Singapore citizen, permanent resident, or Employment Pass holder).
• Compliance with ACRA regulations regarding registered office and statutory documents.

Additional considerations:

• Flexible management structure for operational autonomy.
• Enhanced credibility and trust among local stakeholders.
• Potential eligibility for government grants and schemes.

Branch Office

1. Acts as an extension of the foreign parent company, lacking separate legal identity.
2. Liabilities extend to the parent company, posing risks but offering global integration.
3. Limited tax exemptions, with taxation based on Singapore operations.

Key requirements:

• Branch name in Singapore must match that of the parent company.
• Appointment of at least one local authorised representative who is a resident in Singapore, (Singapore citizen, permanent resident, or Employment Pass holder).

Additional considerations:

• Taxed solely on Singapore-derived earnings. 
• Parent company is liable for branch office actions. 
• Excluded from Singapore tax exemptions that subsidiary companies enjoy. 

Representative Office (RO)

1. Temporary setup for market exploration and research, ideal for initial market assessment.
2. Prohibited from engaging in profit-generating activities or signing contracts.
3. Limited to non-core functions, with a maximum operation period of three years.

Key requirements:

• Appointment of a representative from the parent company.
• Restricted to five local support staff members.

Additional considerations:

• Cost-effective option for market reconnaissance and feasibility studies.
• Restricted operational scope may limit long-term viability.
• Transition plan required for conversion to subsidiary or branch office for continued operations.

Summary

Selecting the appropriate business structure is crucial for foreign companies entering the local market. By understanding the intricacies of subsidiary companies, branch offices, and representative offices, companies can make informed choices when setting up a company in Singapore. 

Using an incorporation service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple. Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email us at [email protected], or contact us using this form.

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