Foreign Company Incorporation Services- Interested in Setting Up Your Own Company in Singapore? Here’s How to Do It for Foreign Companies
Intending to incorporate or expand your business in Singapore? Depending on your company goals, here are some options you can consider to set up your own company in Singapore.
Foreign companies are finding it quite alluring to set up divisions in Singapore. The reasons for their interest in this region include Singapore’s stable political climate, strategic geographical location, and attractive corporate tax regimes.
If you are a foreigner planning to set up or expand your company in Singapore, it may be wise to recruit services of a professional firm that can help you incorporate and register your company in Singapore. In the meantime, let’s have a look at these three options that are available for foreign businesses. These options are your gateways to set up a successful business in Singapore.
1. Singapore Subsidiary
The first option for foreign businessmen is to set up a subsidiary in Singapore.
What is a subsidiary?
It is a locally incorporated private limited company that has local or foreign entities as the majority of its shareholders. A subsidiary can be completely owned by foreign entities. The name of the subsidiary unit can be different or the same as the parent company.
Since subsidiaries are considered local tax-resident, they are eligible for incentives and tax exemptions granted to local businesses. In addition, subsidiaries are required to have at least one locally appointed manager or director. These business entities can also engage in operations that run on a different scale than that of their original companies.
How can you register for a subsidiary?
You can process the registration online on BizFile+ with your SingPass or through a professional agent or a firm to complete the application procedures on behalf of the parent company. The registration process for the incorporation of a subsidiary is somewhat like the registration of a local company.
Why should you incorporate a subsidiary?
Most foreign companies decide to incorporate a subsidiary due to the added tax reimbursements and the limited liability protection. Setting up a subsidiary is an ideal option for companies looking to establish businesses in Singapore on a long-term basis.
2. Singapore Branch Office
The second entry option for foreign businesses would be to incorporate a branch office in Singapore.
What is a branch office?
A branch office is basically an extension of the parent company; it is a division that does not work as a separate legal entity. This means that the parent company will be held responsible for the activities and lapses of the branch office.
Please note that branch offices are not treated as the local tax residents in Singapore. Therefore, they are not eligible for various incentives and tax benefits offered to resident companies. Moreover, branch offices are bound to work under the scope of their parent companies.
The Singapore government requires branch offices to appoint at least one Singaporean representative. A permanent resident, Singaporean citizen, or an EntrePass holder can all qualify for this position. The name of the branch office must not be different from that of the parent company.
How can you register a branch office?
You can register your company’s branch office in Singapore via BizFile+ using your SingPass. You can also engage a professional filing agent or firm to complete the online procedures on your behalf.
What’s More?
Setting up a branch office in Singapore is considered a short-term initiative as it is difficult to attract investors due to the non-resident status. The liability imposed on parent companies can also deter them from incorporating branch offices elsewhere. Conclusively, a Singaporean branch office is only suitable for companies looking to collect market shares in the short term.
3. Representative Office
The third option available for foreign companies is to kick-start a representative office in Singapore.
What is a Singapore representative office?
A representative office is a short-term setup that helps foreign businesses to explore the market and handle company affairs in Singapore without having to conduct any profitable business operation.
Note that representative offices don’t have any legal identity. Hence, representative offices cannot lease warehouses, sign contracts, make invoices, or review letters of credits—either directly or on their parent company’s behalf. Parent companies are liable for the conduct of their representative offices in Singapore.
How to register a representative office in Singapore?
Registration for a representative office can be done on the Enterprise Singapore website. Companies are advised to engage a professional filing service to complete the application form and finish the online procedures on their behalf. The foreign company incorporation services in Singapore can simply act as the point of contact with local authorities.
The requirements and testimonies needed are stated clearly on the Enterprise Singapore website. You can visit the site to review the criteria.
Why should you set up a representative office in Singapore?
Individuals or companies are generally encouraged to incorporate a representative office if their main interest is to analyze the Singapore business environment before deciding to put in any form of investment. It is also ideal to set up a representative office if you have non-core activities to be handled in Singapore.
Some things to note:
- The representative office cannot hire more than five local support employees.
- A representative office must be staffed by a hiring manager from the parent company’s head office.
- A representative office can run its operations for three years and must upgrade the unit to a branch office or a subsidiary division by the end of that tenure.
- If your representative office specializes in the insurance, finance, or banking sector, you will need to register your office with the Monetary Authority of Singapore (MAS). For offices in other sectors, you must register with International Enterprise Singapore (IE Singapore).
If you would like to set up your company in Singapore without any concerns and possible impediments, get in touch with Mi2U business Support today. The service specializes in filing registration documents and can assist you in various business-related tasks. Please refer to Mi2U Business support now!
