Branch Office Setup
Singapore is free of red-tapism and bureaucratic roadblocks when it comes to company incorporation. Therefore, foreign corporations setting up a business in Singapore can benefit from the best of its tax structure and business-friendly initiatives. Foreign companies that seek to establish a business in Singapore may choose to operate through either:
- Branch office
- Subsidiary company
- Offshore company
In this article, we will detail the procedures for setting up a branch office in Singapore.
Establishing a Branch Office
If you seek to expand the scope of your business internationally, you need to set up a branch office. Your branch office will perform similar operations performed by the parent company. As branch offices are located in multiple cities and countries, they extend the reach of the head office and generate more profits for the parent corporation.
Registration Requirements for Branch Office
At Jaanik, we will make it easy for you to set up your branch office in Singapore. We help you with the registration and ensure that your documents are processed on time. Upon registration, your Singapore branch office will become an extension of the parent company where the head office will be liable for all the debts and liabilities of the parent company. You may register your branch office online via the BizFile+ portal, which is managed by the ACRA. Read on to learn about the branch office registration details.
|Branch Name||The name of your branch office should correspond with the name of your parent company|
|Activities and Constitution||The structure of the branch office, its shareholders and its range of activities should be the same as that of the parent company. There is no separate constitution.|
|Representative||Your branch should have at least one authorised representative who is a Singaporean citizen, a permanent resident or an employment pass holder in Singapore. This representative needs to be at least 18 years old.|
|Registered Address||As per the Singapore Companies Act, your branch office should have a registered physical address in Singapore where all your business correspondence will be sent.|
Documents for Registration
Before we help you set up a branch office in Singapore, you will need to provide us with the following documents:
- A certified copy of the certificate of incorporation of your company
- A certified copy of the constitution of your company
- Details and particulars of the foreign branch office’s directors
- Details on the opening hours of the branch office in Singapore
- Information on the foreign company’s registration number, legal entity type and business description
- Details of at least one Singaporean resident who has been appointed by your company to act as an authorised representative
- Statement of consent from the branch’s authorised representative who has agreed to his/her appointment
- The latest audited financial statement of the parent company. In case, your parent company is new and there are no audited accounts and financial statements, the required details can be self-declared. You may provide company brochures and other information to support your application.
- Your documents that are not in English need to be translated in English before submission
Timeline for Registration
We will complete all your registration formalities within the shortest time possible. You need not even make a physical visit to our office. All you need to do is make sure that you provide the required information. The two steps in the branch registration process include:
- Name approval: The name of your branch is required to be the same as that of the parent company. Unless the name is inappropriate or similar to an existing company, it is most likely to be approved in one or two days
- Entity registration: You will get an email from the company registrar confirming the registration of the company’s branch office. You will not receive a hard copy unless you request for the same with a separate application after the registration of the entity.
After Branch Office Registration
After your branch office has been successfully approved and registered, you may commence your business operations. However, you will need to open a corporate bank before proceeding to your business.
Corporate Bank Account
We will help you choose the right corporate bank for your business, taking into consideration the following details:
- The amount for an initial deposit
- Minimum balance
- Accounts that can hold multiple currencies
We will enable you to understand the benefits of different banks in Singapore. You may either open a corporate bank account with a Singaporean bank or a foreign bank. You may open your bank account in person or online.
Annual General Meetings
Similar to the parent company, a branch office is also required to hold Annual General Meetings (AGM). The AGM will be presided by the chairperson of the Board of Directors where the branch’s financial statements will be presented to the shareholders. The company secretary prepares the documents needed for the AGM.
Also, note that the Companies Act requires the branch office to file its Annual Report within two months of its AGM or seven months from the end of its financial year.
A branch office in Singapore is usually taxed at the standard corporate rate of 17%. Our Tax Management Team will ensure that your tax is reduced as much as possible.
Establishing a branch office in Singapore is simple and straightforward. It is made easier by our professional experts at Jaanik. Contact us now if you seek to open your branch office in Singapore.
Should you have any queries, send an email to us at email@example.com