Branch Office Setup

Branch Office Setup in Singapore

Singapore offers a business-friendly environment, free from red-tape and bureaucratic hurdles, making it an ideal location for foreign corporations looking to establish a presence. Companies can benefit from Singapore’s favorable tax structure and numerous pro-business initiatives. Foreign corporations have three main options when setting up a business in Singapore:

  • Branch Office
  • Subsidiary Company
  • Offshore Company

In this guide, we’ll focus on the procedures for setting up a branch office in Singapore.

Establishing a Branch Office

Expanding internationally is a strategic move for growing businesses. Setting up a branch office allows your business to mirror the operations of your parent company while extending its global reach. Branch offices in various countries and cities help increase profits and market exposure for the parent corporation.

Registration Requirements for a Branch Office

At Global Business 360, we simplify the process of setting up your branch office in Singapore. We assist with registration and ensure that all documentation is processed promptly. Once registered, your Singapore branch office becomes an extension of the parent company, with the parent company assuming liability for all debts and obligations of the branch. You can register your branch office online through the BizFile+ portal, managed by the Accounting and Corporate Regulatory Authority (ACRA).

Here are the key requirements for registering a branch office in Singapore:

1. Branch Name

The branch office name must be the same as the parent company.

2. Activities and Constitution

The branch office’s structure, shareholders, and range of activities must match those of the parent company. It does not have a separate constitution.

3. Representative

Your branch office must appoint at least one authorized representative who is either a Singaporean citizen, a permanent resident, or an Employment Pass holder. This representative must be at least 18 years old.

4. Registered Address

Under the Singapore Companies Act, your branch office must have a registered physical address in Singapore where business correspondence can be sent.

Documents Required for Registration

Before we help you register your branch office, you’ll need to provide the following documents:

  • Certified copy of your company’s certificate of incorporation.
  • Certified copy of your company’s constitution.
  • Details of the branch office’s directors.
  • Information about the branch office’s operating hours in Singapore.
  • The foreign company’s registration number, legal entity type, and a brief description of the business.
  • Details of at least one Singapore-based representative appointed by your company.
  • A statement of consent from the branch’s authorized representative.
  • The latest audited financial statement of the parent company. If the parent company is newly established without audited accounts, a self-declaration along with supporting information like company brochures can be provided.
  • Documents not in English must be translated before submission.

Registration Timeline

At Global Business 360, we ensure your branch office registration is completed in the shortest possible time. You won’t need to visit our office in person. Simply provide the necessary documents, and we’ll handle the rest. The branch office registration process involves two main steps:

  1. Name Approval: The branch office’s name, which must match the parent company, will be approved within 1-2 days, provided there are no conflicts or issues.
  2. Entity Registration: After the name approval, you will receive an email from the company registrar confirming the registration. If a physical copy is required, it can be requested after registration.

After Branch Office Registration

Once your branch office is approved and registered, you may begin operations. However, you’ll need to open a corporate bank account to manage your finances effectively.

Corporate Bank Account

We will assist you in selecting the right corporate bank, considering factors such as:

  • Initial deposit requirements
  • Minimum balance thresholds
  • Multi-currency account options

You may choose to open an account with either a local Singaporean bank or a foreign bank, and this can be done in person or online.

Annual General Meetings (AGMs)

Similar to the parent company, your branch office will be required to hold Annual General Meetings (AGMs). During these meetings, the financial statements of the branch will be presented to shareholders. Our team will ensure all required documents are prepared and in order, as mandated by the Companies Act.

Additionally, the branch office must file its Annual Report within two months of its AGM or seven months after the end of its financial year.

Taxation

Branch offices in Singapore are subject to a standard corporate tax rate of 17%. Our Tax Management Team will work with you to minimize your tax obligations while ensuring compliance with local laws.

Establishing a branch office in Singapore is a straightforward process, made even easier by the professional expertise of our team at Global Business 360. Contact us today to begin your branch office setup and take advantage of Singapore’s dynamic business environment.

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