Singapore Branch Office Formation Guide

Singapore Branch Office Formation Guide

Singapore Branch Office Formation Guide

A foreign company who desires to set up a Branch Office in Singapore is required to appoint two Singapore residents to act as legal agents of the office and will provide administrative services and accept official notices from authorities. The Singapore Companies Act provides that Singapore agents are responsible for all matters related to the Branch Office as well as be personally liable for all penalties imposed on the company for any breach of law or act.

A Singapore Branch Office does not enjoy tax incentives and exemptions available to Singapore-incorporated Private Limited Companies, and is considered a non-resident for tax purposes. Annual accounting reports are likewise required by law to be submitted by the Branch Office to the ACRA as well as to its head office.

A license is required for a Singapore Branch Office of international banks and other financial institutions which can be obtained from the Monetary Authority of Singapore (MAS) and must comply with the capital adequacy requirements regulated by the government body.

Let us take a glimpse of each of the important features of a branch office::

LEGAL PERSONALITIES. Branch is essentially the same unit of a foreign company or head office, which is incorporated outside Singapore. Therefore, the branch is not a separate entity, but only to expand the company's headquarters.

RESPONSIBILITIES. A result of the relationship between the branch office has its right to sue a branch in Singapore. The responsibility of the branch extends its parent company or head.

NAME OF THE COMPANY. The office should maintain and use the same name used for its headquarters.

PERMITTED ACTIVITIES. The activities of a branch in Singapore is committed to be the same as the activities of the headquarters.

TAXATION. With regards to tax benefits, a branch is taxed as a non-resident and local taxes do not apply it, even if it is located in Singapore.

PRESENTATION OF ANNUAL ACCOUNTS. A branch is required to submit their financial accounts annually based on corporate accountability and Regulatory Authority (ACRA).

RECRUITMENT. A branch has the readability of hiring their own employees, whether domestic or foreign.

BANK ACCOUNT. A branch is authorized to open a bank account in Singapore society.

APPOINTED OFFICIALS. Singapore law office nominate at least two officers, who are residents of Singapore. These officials act as representatives of the headquarters, whose job is to accept the communications and other tools to inform society of Singapore. They must be natural persons to be considered as representatives.

REGISTRATION VALIDITY. The registration of a branch closed or settled is perpetual and do not require renewal.

RECORDING TIME. The registration of a branch in Singapore usually takes 1-2 days.

The above facts about the office are guide for entrepreneurs who want to carry on business in Singapore, and will help you decide which option is best.

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