When it comes to registering your company in Singapore there are a lot of options that you can choose from. There are several reasons as to why Singapore remains such an important business destination for companies from across the world. One of the major reasons in this regard is the level of transparency in monitoring bodies such as the Corporate Regulatory Authority Singapore. You can easily open a branch office over here, start a subsidiary, or a representative office. The immigration policies of this Southeast Asian country are pretty simple and liberal as well. Companies that wish to establish their regional head offices over here are given financial assistance.
Opening a branch office in Singapore
If you want to register a branch office in Singapore you need to get it done at the Accounting Company Singapore and Corporate Regulatory Authority (ACRA) of Singapore. Normally, these companies are regarded as extensions of foreign companies. These are the least-preferred options for foreign investors and there are several reasons for the same. In Singapore, you need to submit the accounts of head offices for purposes of taxation. There are not a lot of companies that would be at ease with such as rule.
The head office is supposed to be liable for all the actions of a branch office. If it is a branch office then a company would not be able to claim tax benefits that are available to local companies in Singapore. It is important that the branch office and the head office have the same name. ACRA also needs to provide its approval to the same before it gets registered. A branch office also needs to appoint a couple of agents who must be residents of Singapore.
Over here, a branch office will be allowed to send back all its capital and income to the head office. However, the part of income that has been earned in Singapore will be subjected to tax rates that are applicable locally over here.
Opening a subsidiary company in Singapore
Normally, a subsidiary company is the best way to go about things over here in Singapore. Most of the foreign companies want to go this way and there are several reasons for the same as well. The parent company is not liable in any shape or form for the work done by a subsidiary company. This is because it is regarded as a separate entity.
In Singapore, a subsidiary company can enjoy the tax-related benefits that are available to local enterprises. It can also operate with a local name that can be absolutely different from that of the parent company. A company can appoint as many directors in a subsidiary as it likes but only one of them needs to be a Singapore resident.
Opening a representative office in Singapore
A representative office is mainly one that makes sure you have a presence in Singapore Corporate Regulatory Authority for any business activity in this case. However, such an office lacks legal status and is unable to do any business.