Foreign Companies that are looking to have a business presence in Singapore can set up a Singapore branch office that is treated as an expansion of its parent firm. With this arrangement, the head office has a direct liability for all of the activities. This Business formation is thought of as a non-inhabitant thing which means it is not qualified for any tax advantages and exceptions that are usually appreciated by local businesses in Singapore.
As far as Taxation benefits, this company arrangement is usually not appealing. Notwithstanding, it is important to be aware of the solitary the earnings and incomes of the branch office will be covered by taxation rather than the parent company’s.
According to The Accounting and Corporate Regulatory Authority (ACRA), the title of a branch office should be exactly like its parent company except when the company name is already existing in Singapore.
Under the singapore company incorporation, a foreign company is necessary to appoint at least two neighborhood occupants who will work as a director to control the activities of the branch office. Meanwhile, there is not any prerequisite on the number of local or foreign staff who will be used by a branch office.
Additionally, This Act permits a branch office to execute any business activities provided that these are in accord with the parent company’s goals and nature of business, and therefore are seen as legal in Singapore.
One Drawback of a branch office is that the parent organization is required to submit its audited accounts each fiscal year, an arrangement that many foreign business people are uncomfortable with.
It is Important to be aware of the ACRA does not allow foreign individuals and business entities to self-register their own businesses. With this consideration, it is necessary for foreigners to recruit a professional company that can assist them in the enrollment procedures.
The Processing for branch office registration generally takes one or two days. This can occur even without the existence of the foreign company visionaries or their employee representatives.
Meanwhile, ACRA will send an email notification if the division and its title was approved. There’s absolutely no hard duplicate provided except when a foreign company will need for this through the post registration procedure. In Singapore, Email alarms are adequate for most business transactions, as an example, the signing of office rental arrangement and bank accounts opening.