OVERVIEW

 

Singapore branch office is one of the two options for foreign companies wishing to setup their presence in Singapore.

 

A registered Branch Office in Singapore functions as an extension of a foreign company that is registered outside of Singapore.

 

Taxation of Singapore Branch Office 

 

A Singapore branch office is considered a non-resident company for tax purposes. Non-resident companies are not eligible for tax incentives commonly available for new start up resident companies; and therefore most foreign companies prefer to set up a Singapore Subsidiary Company rather than a Branch Office.

 

Singapore Branch Office Incorporation Requirements

 

• Minimum 1 Corporate Shareholder

• 2 Singapore Resident Agents

• A Singapore Registered Office Address

 

Features of a Singapore Branch Office

 

• The name must match that of the parent company.

• It must appoint two staff members who can be Singapore residents or foreign individuals, to act as agents to support the business administration of the Branch Office.

• It is an extension of the foreign parent company; therefore it does not have a separate legal identity.

• The foreign parent company is liable for the acts, losses and debts of its branch office.

• Foreign staff relocating to Singapore to be the agents must obtain an Employment Pass.

• The constitution of the company and its activities are directed by the foreign parent company’s Memorandum and Articles of Association.

• Must have a registered office address in Singapore

   

   

Advantages

 

• It allows foreign companies to explore and expand business opportunities in Singapore market.

• It is a good platform to establish company’s brand.

• It enables direct connection with local agents and distributors.

   

Disadvantages

 

• It is considered a non-resident for tax purposes, and therefore not eligible for any tax exemptions or incentives for new start-ups in Singapore.

• It does not have separate legal identity, and therefore the foreign parent company is responsible for all its debts, losses and liabilities.

• The foreign parent company is required to submit annual report and audited accounts within two months of the Branch Office’s annual general meeting.

   

   

Branch Office Notes

 

If you are a foreign company who wishes to setup a Singapore Branch Office and relocate to Singapore, the following must be fulfilled:

 

1. Engage Beaufort to Register your Singapore Branch Office.

2. Appoint Two Singapore Resident Agents to represent the company in accordance with the Singapore Companies Act. 

   • The agents can be Singapore residents or appointed staff members from the foreign company who have secured the Employment Pass

3. Apply for your Employment Pass and for your employees.

4. Alternatively, engage Beaufort's Nominee Agent Service to represent your Branch Office.

5. Relocate to Singapore and start your business.

 

Application for an Employment Pass for the appointed staff member to relocate to Singapore can only be submitted after the successful registration of the Branch Office.