Some time become a prime choice for corporates all across the globe to set up trade links in. More and more companies are being attracted to the vibrancy and allurement Singapore provides them with. Strategically located as an amalgamation of the best of both East and the West, the country offers an attractive tax regime and a stable political environment for Foreign Company Registration. Added with the modern infrastructure and an educated workforce, Singapore is truly becoming a corporate paradise.
Foreign Company Incorporation in Singapore can be done through three major mediums
- A Branch Office
- Establishing a subsidiary Pte. Ltd. Company
- A representative office
Foreign Company Registration in Singapore
1. Branch Office Establishment in Singapore
A branch office will act as an extension of the parent company, established already outside Singapore. A Foreign Company Registration in Singapore as a branch office will allow greater coverage and recognition for the parent company, along with getting better opportunities their way.
2. Subsidiary Company setup in Singapore
Foreign Company Registration in Singapore is also possible through the establishment of a subsidiary company in the country. The subsidiary company that will be established will be incorporated as a local Pte. Ltd. Company. Subsidiary companies established in Singapore can be wholly-owned entities of the foreign company.
3. Representative Office in Singapore
The third method for Foreign Company Registration in Singapore is through the establishment of a Representative Office. In comparison to a branch office or a subsidiary company, a representative office is not a separate legal entity, but only an extension of the parent company. A representative office thus, cannot enter into legally binding contracts on its own or engage in any profit-making activities.
Representative Office | Branch Office | Subsidiary Company Setup | |
Legal Ownership | Legally, wholly owned by the foreign parent company; though a temporary setup. | Extension of the foreign parent company | |
Business activities and operations | Cannot indulge in commercial/ revenue-generating business | Can only indulge in business activities that fall under the spectrum of the parent company’s business. | |
Repatriation of revenue | Not allowed to repatriate | Allowed to repatriate 100% earnings | Allowed to repatriate 100% earnings |
Employee restrictions | Maximum limit of 5 | ||
Legal requirements | 1. Appointment and relocation of a Chief officer from the head office. 2. Minimum Sales Turnover of Foreign company – $250,000 (US). 3. Legal documented proof of the existence of the company for at least three years before such establishment | 1. Legally registered office address in Singapore. 2. Appointment of a legal resident of Singapore as the agent of the office establishment | 1. Legally registered office address in Singapore. 2. Appointment of a company secretary 3. Appointment of at least one legal resident of Singapore as the director. |
Annual Compliance Requirements | 1. Renewing the registration of the office annually 2. Essential to convert the representative office to either a branch office or a subsidiary company, after three years of operations. | 1. Submitting the annual audited accounts of the Branch Office. 2. Submitting the annual audited accounts of the head office. | 1. Submitting the annual audited accounts. 2. Filing annual tax returns. |
Bestar is one of the leading Foreign Company Registration Service Providers in Singapore with extensive industry experience. contact us now!