Subsidiary vs. Branch Office in Singapore

A presentation brought to you by Lawyers-Singapore.com

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Types of Companies in Singapore

• Foreign investors have several options to choose from when establishing a company in Singapore.

• They may choose to open from the simplest partnership forms to the most complex types of businesses that include local private and public companies, companies limited by shares and companies limited by guarantee.

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Legal Options for Foreign Companies in Singapore

• Foreign companies interested in having an established presence in Singapore can choose from three legal options, according to the investors’ business plans and interests in Singapore.

• The foreign entity can choose to establish a branch office, a subsidiary company or a representative office. 

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The Singapore Subsidiary

• A subsidiary in Singapore is usually chosen by foreign investors who wish to open a small or medium company.

• A subsidiary is incorporated as a private limited company, in which foreign ownership is allowed 100%. 

• Our lawyers in Singapore can help foreign investors set up a subsidiary in the city-state.

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Opening a Subsidiary in Singapore

• Although the subsidiary can have 100% foreign ownership, at the appointment of the board of directors, it is required to name at least one director who is a Singaporean citizen (or a permanent citizen or the owner of a working permit). 

• Singapore subsidiaries are required to have registered offices and a secretary who must be a resident.

 

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The Singapore Branch Office

• If you choose to register your company as a branch office, you should know that the office set up in Singapore will be considered as an extension of the parent company.

• Therefore, the parent company will be liable for the debts of the branch office in Singapore. 

• Among the legal services provided by our Singapore lawyers is also branch office registration.

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Opening a Branch Office in Singapore

• The Singapore Companies Act states that the branch office should appoint two agents, who are required to be residents in Singapore.

• The local legislation states that a branch office must to have as a trade name the name of the parent company. 

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Subsidiary or a Branch Office in Singapore

• The main advantage of setting up a subsidiary is that the company in Singapore is considered a different legal entity than the parent company.

• The subsidiary is liable for its debts which cannot be extended to the parent company. 

• On the other hand, the branch office is owned by the parent company which is not a Singapore tax resident, it will not benefit of the local tax exemptions. 

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Assistance in Opening a Company in Singapore

• If you want to set up a company and need advice on the right type of company to register please contact our law firm in Singapore.

• Our Singapore attorneys will explain in detail what the main differences between subsidiaries and branch offices are.

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Thank you for your attention!

For more information, please contact us at:+ 852 8191 3385

office@lawyers-singapore.com

www.lawyers-singapore.com

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