Singapore Subsidiary Registration: What Foreign Companies Should Know Foreign and international companies interested to have a business presence in Singapore or expand in the Asia Pacific region can register a branch office to the Accounting and Corporate Regulatory Authority (ACRA). According to AsiaBiz Services, which is the leading business registration firm in Singapore, a branch office is considered as a legal extension of its parent company abroad. With this arrangement, it should have the same name and nature of business in order to legally operate in the country. “As an extension of its parent company, a branch office should only engage in business activities that are also performed by its main headquarter. For example, if a foreign company is engaged in food manufacturing, its Singapore based office should only conduct activities in that specific sector,” the company said. Being an extension of a foreign company, it is important to note that a branch office is not considered as a local business entity, as a result, it is not eligible for any local tax incentives and exemptions given to locally incorporated companies. “Because a branch office is not eligible for local tax incentives, some foreign companies would rather prefer a subsidiary company which enjoys countless of local tax benefits and exemptions especially within the three years of its incorporation,” AsiaBiz said. Meanwhile, a foreign company and its branch office are treated as one legal entity which means that the main headquarter will not enjoy limited liability protection, consequently, it is directly liable for the acts, losses, debts, and liabilities of its Singaporebased office. Despite certain disadvantages of a branch office, some foreign companies still consider this setup highly ideal especially for those who want to have a direct control and authority on the activities of its Singaporebased office. “Unlike in subsidiary company in which it is mandatory to practice its management and control in Singapore, foreign companies with a branch office enjoy direct authority in the latter’s operation,” the business registration said. To legally operate a branch office, the most important requirement is the appointment of two local residents who may be a natural citizen or foreigner
with Employment Pass, PR Status, and EntrePass and will act as the agents of this entity. “It is important to remember that these two local agents are personally liable for the penalties against their branch office in case that it has breached a law or failed to meet the statutory requirements,” AsiaBiz said. Meanwhile, it is a prerequisite for any foreign companies and individuals to hire a business registration firm that will act on their behalf during the Singapore branch office application. More Information: AsiaBizSetup is the leading provider of Singapore Subsidiary Registration Solutions and has successfully helped thousands of both local and foreign entrepreneurs Register a Singapore Company . AsiaBizSetup.net address: 120 Telok Ayer Street Singapore 068589 phone: +6563034614 website: http://www.asiabizsetup.net/
Published on Nov 18, 2010
Published on Nov 18, 2010
AsiaBiz is the leading Singapore company that provides Singapore Subsidiary Registration services to local and foreign entrepreneurs and inv...