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Branch Office Vs Representative Office Vs Subsidiary Company in Singapore

The comparison of branch office vs. representative office vs. subsidiary office Singapore will prove as a worthwhile reference for the entrepreneur. These three companies differ in their working type, human resource hiring ability, and scalability options.

Singapore is strategically located near Asia which is a huge market for the MNC’s. For this reason, global companies are establishing their bases in Singapore. Doing so helps them to be in touch of the major markets of the Asia which are only a few hours of flight away from Singapore.

Some foreign companies believe in remotely handling its branch in Singapore, while, some entrepreneurs relocate to Singapore and take charge of the business activities of their companies. The business structure chosen to incorporate a company is of at most importance. It may determine the flexibility, scalability and acceptability of your business.

In Singapore a foreign company can choose to incorporate a Branch office, a Subsidiary Company or a Representative office. These three types are different business structures and are used for different purposes. Let us see their uses and the purposes behind incorporating a company using one of these structures.

Comparison of Singapore Branch, Subsidiary & Representative Office

Comparison Factors

Subsidiary Company

Branch Office

Representative Office

Company Name Can be similar or different from the parent company Has to be same as that of the parent company Must be the same as that of the parent company
Valid Up to Once registered will last forever until closed Once registered will last forever until closed After a maximum of 3 years validity it must be renewed every year
Legal Status A separate legal entity An extension of the parent company, not a separate entity A temporary setup of the parent company for administrative tasks.
Liability Not liable to the parent company It is liable to the parent company It is liable to the parent company
Registration Timeline 1 to 2 days 1 to 2 days 3-5 days
Officers’ Appointment Need to appoint at least 1 local director Need to appoint at least 2 local agents Need to appoint a chief representative of the parent company
Staff Employment Can hire any number of local or foreign staff Can hire any number of local or foreign staff Apart from the chief representative, a maximum of 5 employees can be hired
Activities Permitted Can be similar or different from the activities of the parent company Must be the same as that of the activities of the parent company Can conduct administrative tasks, market research and feasibility studies
Opening of Bank Account Must open a corporate bank account in Singapore Must open a corporate bank account in Singapore Can open a bank account in Singapore funded by the parent company
Taxed Under Taxed as a Singapore resident Taxed as a non-resident in Singapore Not applicable as it does not involve in generating revenue
Annual Tax Filing Need to file the accounts of the subsidiary company only Need to file the accounts of both; the branch office in Singapore and its parent company Not applicable
Audited Accounts Must submit the audited accounts to ACRA and IRAS Must submit the audited accounts to ACRA and IRAS Not applicable

The table presented above is enough to show the different aspects of these companies. We, at Singapore Accounts, assist our clients in company incorporation in Singapore. For a foreigner it is advisable to use our expert services as we make it easy for them to get registered as business entities.

We will be delighted to serve you with our best Singapore company incorporation services.

Please feel free to contact us on +65 6536 0036 or drop in an email at info@accountingservice.com.sg