Registration of a branch office in Singapore
A branch office in Singapore for a foreign company is a legal business entity representing its parent company in Singapore. A Singapore branch office is considered to be part of the foreign parent company and not as a separate registered business which differs from a subsidiary company. The parent company is fully liable for all the debts and liabilities of its Singapore branch office. As such it makes it less favorable of a way of doing business for foreign companies wishing to do business in Singapore.
Overview of Singapore branch office
- 100% foreign company ownership
- Must be named the same as foreign company it represents
- Is not a local company thus is not treated as a Singapore taxable entity
- Can support an Employment Pass for its employees
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Singapore Branch Office
Why we do not recommend setting up a branch office?
As a branch office of the foreign parent company debts and liabilities incurred by the branch office in Singapore are the responsibility of the parent company. Learn more on why incorporating a subsidiary company is best.
Liability
Singapore branch offices offers no liability protection
As a branch office it is not considered a separate entity from its foreign parent as such the foreign company will be fully liable for it’s activities and debts.
Ownership by a foreign business
Branch offices are extensions of foreign companies
A foreign company can fully own its own branch office in Singapore but it is treated as a fully foreign entity and is not eligible for any of Singapore’s tax or treaty benefits.