This chart provides a side-by-side comparison of the three incorporation options for foreign companies intending to set up and operate in Singapore, namely: subsidiary company, representative office, and branch office.
Tax and compliance to regulatory requirements varies depending on the type of entity you choose. As company incorporation specialists, we aim to help owners choose the best option for their venture into Singapore. Please feel free to contact us via email or call us at +65-64388887 to speak to our incorporation specialists.
|Types||Subsidiary Company||Representative Office||Branch Office|
|Package Details||with Relocation
|Learn more||with Relocation
|Entity Name||Need not be the same as parent company||Must be the same as parent company||Must be the same as the parent company|
|Allowed Activities||Can conduct all business activities||Can only conduct market research or coordinating activities||Must be the same as the parent company|
|Suitable For||For local or Foreign Companies that wish to expand their operations in Singapore||For Foreign Companies that wish to set up temporary vehicle in Singapore to conduct research and act as liaison office||For Foreign Companies thay wish to expand their operations in Singapore|
|Disadvantages||Continuing Compliance Obligations eg Financial Reports, Audit, AGMS, etc||It is a temporary vehicle and cannot generate revenue||Continuing Compliance Obligations eg Financial Reports, Audit etc|
|Ownership||Can be 100% foreign or locally owned||No Ownership||Owned 100% by the head office|
|Separate Legal Entity||Yes||No||No|
|Cap on Number of Members||Yes, max 50||Not Applicable||Not Applicable|
|Minimum Setting up Requirement||Min One shareholder, that can be an Individual or corporate (100% local or foreign shareholding allowed. Must have at least one resident director||Must appoint a Chief Representative who will relocate from headquarters||Must have two Singapore Resident Agents|
|Need for Audited Accounts||Yes||No||Yes|
|Filing of Accounts with ACRA and IRAS||Yes||No||Yes|
|Annual Filing||Must file audit report of subsidiary||Not Applicable||Must file branch office’s as well as parent company’s audit reports|
|Tax Treatment||Taxed as Singapore resident entity, local tax benefits available||Not Applicable||Taxed as non-resident entity, local tax benefits not available|
|Tax Benefits||A subsidiary company, with at least one individual shareholder with minimum of 10 percent shareholding, is entitled to local tax incentives and rebates||No Corporate tax. Employees have to pay personal tax||Partial tax exemption|
|Cessation of Business upon Death of a Member/Partner||No. Equity shares go on in perpetuity||Not Applicable||No|
|Validity Period||Perpetually until deregistered||This is a temporary Setup. It is intended not to last more than 3 years||Perpetually until deregistered|
|Normal Registration Time||3 hours||3-5 days||3 hours|
|Appointment of Officers||Must appoint at least one local resident director||Must appoint a Chief Representative who will relocate from headquarters||Must appoint two resident agents|
|Governing Body||ACRA & IRAS||International Enterprise Singapore||ACRA & IRAS|
Rikvin is an ACRA registered service provider for BizFile. Rikvin is Singapore’s leading company and business registration specialist that provides company formation services and emigration assistance (i.e application of work visas – Employment Pas, Entrepreneur Pass and Permanent Residence.
Our services are custom designed for non-Singapore Residents. We offer expertise drawn from years of experience in incorporation and work pass application. To find out more on how we can help you start up your Singapore company, please contact us.