Are you one of those owners of foreign companies who want to do business in Singapore? If yes, it is crucial that you know what your options are in terms of the kind of offices you should set up in this city-state before you can actually operate. Your choices include a branch office, a subsidiary company, and a representative office.
A subsidiary company is expected to be registered as a limited liability company because it is it has a separate legal entity. The parent company can't be held responsible for the liabilities of the subsidiary company, although the Singaporean government permits the owner of the parent company to be the sole or one of the major stockholders of a subsidiary company.
A branch office, not like a subsidiary company, is treated as an extension of the parent company. An implication of this kind of arrangement is that it can't be treated as a resident company. A resident company is just like local companies that can enjoy the benefits of tax exemptions and incentives.
Another type of office that foreign business owners can consider registering in the country is a representative office. This is an ideal choice for foreign companies that intend to coordinate the company affairs or conduct market research.
The staff of a representative office can't enter in any contract, engage in direct trades, open letter of credit, lease warehouse or do any income-generating activity because a representative office has no legal persona.
The International Enterprise Singapore is the entity in charge for the registration of a representative office in Singapore. However, businesses that deal with finance, banking and insurance have to seek permit from the Monetary Authority Singapore.
Other things that business owners should take into account when setting up an office in Singapore are the officers to be appointed, the activities allowed, the documents to be submitted annually, and the validity period, aside from the purposes of taxation and liabilities, and as well as the purposes of the business to be registered.
Once the option has been made, the next thing to do is the company registration. Company registration is made easy in Singapore through automated procedures. It's worth mentioning that applicants need a representative who will prepare the requirements for company incorporation and company registration singapore authorities require.
A subsidiary company is expected to be registered as a limited liability company because it is it has a separate legal entity. The parent company can't be held responsible for the liabilities of the subsidiary company, although the Singaporean government permits the owner of the parent company to be the sole or one of the major stockholders of a subsidiary company.
A branch office, not like a subsidiary company, is treated as an extension of the parent company. An implication of this kind of arrangement is that it can't be treated as a resident company. A resident company is just like local companies that can enjoy the benefits of tax exemptions and incentives.
Another type of office that foreign business owners can consider registering in the country is a representative office. This is an ideal choice for foreign companies that intend to coordinate the company affairs or conduct market research.
The staff of a representative office can't enter in any contract, engage in direct trades, open letter of credit, lease warehouse or do any income-generating activity because a representative office has no legal persona.
The International Enterprise Singapore is the entity in charge for the registration of a representative office in Singapore. However, businesses that deal with finance, banking and insurance have to seek permit from the Monetary Authority Singapore.
Other things that business owners should take into account when setting up an office in Singapore are the officers to be appointed, the activities allowed, the documents to be submitted annually, and the validity period, aside from the purposes of taxation and liabilities, and as well as the purposes of the business to be registered.
Once the option has been made, the next thing to do is the company registration. Company registration is made easy in Singapore through automated procedures. It's worth mentioning that applicants need a representative who will prepare the requirements for company incorporation and company registration singapore authorities require.
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