Malaysia Hotline: +603- 2141 8908
Foreign
companies wishing to setup a presence in Singapore can choose to register a
Branch Office, Subsidiary Company, or a Representative Office.
Option 1: Subsidiary Company
A
subsidiary company is a locally incorporated private limited company whose
majority shareholder is another local or foreign company. Singapore allows 100%
foreign ownership in companies. Therefore a foreign company may incorporate a
local limited liability company in Singapore (ie subsidiary company) and own
100% of the shareholding. A
Singapore subsidiary is the most preferred registration option for small to
mid-size foreign businesses interested in establishing their presence in
Singapore.
Option 2: Branch Office
A
Singapore branch office like a subsidiary is a registered legal entity however
unlike a subsidiary, a branch office is treated as an extension of the foreign
company. This is an important point since it means that the foreign company’s
head office bears the ultimate responsibility for any liabilities arising due
to the acts of commission or omission of the Singapore Branch Office. From a
taxation point of view, a branch office is generally considered a non-resident
entity and therefore not eligible for the tax exemptions and incentives
available to local companies in Singapore. Consequently, setting up a branch
office is a less attractive option for small to mid-size businesses.
Option 3: Representative Office
Foreign
companies that are only interested in exploring the market or managing the
company affairs without conducting any business activity of profit yielding
nature, can setup a representative office in Singapore. A representative office
is a temporary setup without any legal persona. Therefore it cannot enter into
any contract, engage in trading directly or on behalf of the foreign company,
lease warehouse, raise invoices, open letter of credit, etc. Representative
office in Singapore can only undertake market research or feasibility studies on
behalf of its parent company.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my