Do you want to open a business at Singapore? This is definitely a great idea. Within past few years, Singapore has gained more popularity as a most attractive hub for the establishment of non-local companies but you have to follow definite rules for registering the company as a non-Singaporean.
There are generally three setup choices for a foreign company in Singapore:
Subsidiary Company Registration Singapore:
The subsidiary companies are well known as locally incorporated private limited companies that have major shareholders from some other foreign or local companies. As per Singapore laws, a company can be completely foreign-owned; it means the company will work as a subsidiary company while owning its 100% shares. Such types of companies are categorized as a separate entity and they operate like local Singapore Company. A well structured local subsidiary company is a tax efficient corporate body as the resident status of this company provides it favorable tax treaties along with several government incentives while allowing easy access to the local funds.
- In Singapore, the name of the subsidiary company and parent company can be different; however, it must be approved by the ACRA at Singapore.
- As per Singapore Companies Act, it is important to appoint one or more company directors and essentially, at least one of these directors must be either permanent resident of Singapore or can be an Employment Pass Holder.
- Such companies need to maintain an appropriately registered office at Singapore address and all statutory documents must be kept in that office.
Branch Office of Foreign Company Registration Singapore:
It is also a registered legal entity that can be treated as parent company’s extension. The Branch office can manage all or any of those businesses that are related to the scope of the parent company. The tax rules are applied to the earnings drawn by the Singapore branch office only.
These offices come into the category of non-resident entity that means the foreign head office will be responsible for all the acts of omissions or commissions performed by the branch office. However, this non-resident status of branch offices also makes them unable to enjoy various tax exemptions that are otherwise provided to all subsidiary and local companies in the city.
- The Singapore branch office name and head office name must be same and it must be pre-approved right before the final registration of the company.
- As per Singapore Companies Act, it is important to appoint one authorized representative to accept all notices and services for the process. Also, he must be resident of Singapore.
- The branch office is also bound to have a registered office address of Singapore location.
Representative Office of Foreign Company Registration Singapore:
The representative office works like a temporary setup and it allows foreign companies to explore the market opportunities in Singapore but without doing any profitable business activity in the area.
The representative offices are not required to have any legal personas so it is not allowed to sign contracts, lease warehouse, trade or raise invoices in this premises.
- These offices must have staff managed by the head office representative of the foreign company.
- The representative offices are allowed to hire more than 5 members as support staff.
- In order to access the banking services and insurance sectors in the area, the representative office must be registered with MAS.