How to Set Up a Branch Office in Singapore

From its advantageous geographical location to its favorable policies and streamlined processes, there are many reasons why entrepreneurs are eager to start their businesses in Singapore. However, it doesn’t just stop there, as even existing companies are attracted to Singapore’s dynamic and exciting business environment and are looking to expand their business into the city-state. Here’s how you can set up a branch office in Singapore!

What is a Branch Office?

A branch office is an extension of a parent company that’s based outside of Singapore. A branch office is often established by an existing company in order to facilitate overseas operations, expand to foreign audiences and customer bases, as well as improve revenue generation. 

Here are some additional facts that you should know about branch offices in Singapore:

• Branch offices are considered non-resident entities, which means that they aren’t eligible for tax incentives, grants, and exemptions that are offered to other companies.
• Since branch offices are seen as extensions of the parent company, all debts and liabilities incurred by the branch office will affect the parent company as well. 
• If a branch office in Singapore is sued, the case will be held in Singapore and the final verdict and judgment will fall on or affect the parent company.
• Branch offices share the same company constitution as the parent company. 

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What Do You Need to Set Up a Branch Office in Singapore?

Opening a branch office in Singapore is a relatively simple procedure, provided that you fulfill the following requirements and conditions:

• Foreign companies looking to open a branch office in Singapore will need to work with a registered filing agent, such as a corporate service provider, to fulfill the application process on their behalf.
• The parent company must have sole ownership of the branch office shares. Since the branch office is not a separate legal entity from the parent company, it can not have its own set of shareholders.
• A branch office will require at least one local representative who is at least 18 years old and a Singapore citizen, permanent resident, or pass holder.
• A branch office in Singapore will need a local registered address. Keep in mind that the registered office address cannot be a P.O. box.

The following will also be needed for the branch office registration:

• Name of the parent company
• Overseas address of the parent company
• Certified copy of the parent company’s certificate of incorporation
• Certified copy of the parent company’s constitution
• Particulars of the local representative based in Singapore
• Proof of consent of the local representative
• Notice that includes the foreign company’s registration number, the specific business activities, and the legal structure
• Copy of the parent company’s audited financial statements

How to Set Up a Branch Office in Singapore

While foreign companies must engage a registered filing agent based in Singapore to submit an application on their behalf, here are the steps that are involved in branch office registration:

1. Name Approval: A branch office’s name must be the same as its parent company. The branch office name must also be approved by ACRA beforehand to make sure that it isn’t identical to an existing business name or trademark.
2. Branch Office Registration: Go to ACRA’s BizFile+ online portal and select eServices then Foreign Company. This will expand a selection menu. Choose Start a New Foreign Company before clicking Registration of Branch of Foreign Company. Once you’ve successfully logged in, simply go through the entire process and fill in the requested information. The process should take around 20 minutes to complete

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What are the Filing Requirements for Branch Offices?

Branch offices are required to fulfill the following annual filing requirements as specified by ACRA and the Inland Revenue Authority of Singapore (IRAS):

1. Branch offices are required to prepare accurate and updated financial statements with the format set by the Singapore Financial Reporting Standards.
2. The audited financial statements should be submitted to ACRA within 60 days of the parent company’s annual general meeting.
3. Within three months of the branch office’s financial year end, it must declare its revenue and estimated chargeable income to IRAS.
4. A branch office must also file annual income tax returns with IRAS. The deadline of submission will vary, with paper filing being due on November 30 and electronic filing due on December 15.

Wrapping it up!

Singapore is a country that has a highly effective infrastructure, a flexible tax regime, a free market economy, and a stable socio-political environment. For many years, Singapore has been considered one of the easiest places for setting up a business or a company. 

In Singapore, it is possible to set up a business or a branch office in less than a day! As a country, Singapore is classified as one of the greenest and cleanest cities in the world. Singapore is a thriving cosmopolitan city suitable for setting up a business or opening a branch office.