About Rikvin Singapore Branch Office Formation Services
If you are a foreign entrepreneur who wish to incorporate a company, Singapore is the place to be. As a foreign entrepreneur, you have options for Singapore company registration; you can either choose to register a Subsidiary Company, Branch Office or a Representative Office in Singapore.
But in here, let us take a closer look at Branch Office registration. A Branch Office in Singapore is like an annex of a foreign parent company which is registered outside of Singapore. Facilitation of operation and revenue generation for the foreign parent company are one of the reasons why a Branch Office is established. If registering a Branch Office, you will need to appoint two local agents for the branch office, who must be Singapore residents. You are allowed to relocate foreign staff to act as the local agents once they have secured their Employment Pass. The Employment Pass application can be filed only after registration of the company.
Features of Singapore Branch Office
The name of the branch office must be the same as the name of the parent company. Two staff members must be appointed and they must be Singapore residents or foreign individuals. These staff members will be agents of the parent company who will support the administration of business of the branch office. Since a branch office is an extension of the foreign parent company, it does not have a separate legal identity. The acts, losses and debts of the branch office extend and affect the foreign parent company. An Employment Staff must first be obtained by the foreign staff relocating to Singapore to act as agents. The foreign parent company’s Memorandum and Articles of Association directs the constitution and activities of the branch office.
Advantages
Registering a branch office offers major advantages namely; foreign companies are given wide opportunities to explore and expand business prospects in Singapore market, provide a good platform for the establishment of the company’s brand and enable the foreign company to establish a direct connection with local agents and distributors.
Disadvantages
Alternatively, there are also some disadvantages of registering a branch office. First, it is not eligible for any tax exemptions or incentives for new start-up companies in Singapore because it is considered a non-resident for tax purposes. And because it does not have a separate legal identity, the foreign parent company is liable for the branch office’s m debts, losses and liabilities. An annual report and audited accounts is required to be submitted by the foreign parent company within two months of the Branch Office’s annual general meeting.
Branch Office Setup Requirements
The following steps are necessary in the set up of a Singapore Branch Office:
- Register a Singapore Branch Office. Rikvin can assist in the registration process of your Branch Office.
- Appoint two resident agents who will represent the company pursuant to the Singapore Companies Act. These agents must be Singapore residents or appointed staff members of the foreign company who are Employment Pass holders.
- On the other hand, our Nominee Agent Service can represent as agents of your Branch Office. An Employment Pass application can be submitted for the relocation to Singapore of the appointed staff member only after the successful registration of the Branch Office.
Taxation of Singapore Branch Office
For tax purposes, a Singapore Branch Office is considered a non-resident company. Because non- resident companies are not eligible for tax incentives available to new start up or resident companies, most foreign companies prefer to set up a Subsidiary Company rather than a Branch Office.
Rikvin offers business solutions for both local and foreign investors or entrepreneurs. One of its specialities is Singapore company setup. The company has successfully help hundreds of foreign individuals register a Singapore branch office. Rikvin has effectively facilitated both non-resident and resident financiers build business firms in Singapore. Incoming calls in our phones are answered by live persons and not by an answering machine. We recognize the importance of your time and we are aware that technology cannot replace a person most especially, when we need to make vital business moves. If you are interested in learning more about Rikvin’s Services kindly email us at info@rikvin.com or give us a call at +65 64838887.
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