As a business owner in a foreign country, you might be interested to also invest in incorporating a company extension in Singapore as it is one of the best countries in the world for business with its accommodating laws and business-friendly tax regulations.
For a non-Singaporean business to start a company in the country, it is recommended to use the service of a professional firm that can help you in company incorporation processes. You must also know the types of foreign company you can choose to set up in Singapore.
1. Subsidiary Company
A subsidiary company is a private limited company that is incorporated locally. The majority of shareholders for this type of business is another local or foreign company. A subsidiary company allows foreign companies to own a hundred percent of its shares.
The Singaporean law views a subsidiary company in Singapore as a separate entity from its foreign parent company. The subsidiary company in Singapore is subject to Singaporean law as it is viewed as a local Singapore company. The foreign company is not held accountable for the debts and liabilities of its subsidiary company. This type of business entity is most suitable for a small to medium sized business.
2. Branch Office
A branch office in Singapore is a company that is considered as the extension of the foreign parent company. It is allowed to conduct the same business as the parent company and even repatriate its profits and capitals. A Singapore branch office will only have to pay taxes for the earnings they get from business operations in Singapore.
The foreign company’s office head of the branch office will be liable for any acts of the Singapore branch office. A branch office is recommended for medium to large sized business that wants to expand their range of business in Singapore.
3. Representative Office
A Singapore representative office is an office that is set up for a period of time. The set up of this type of office allows foreign companies to observe the potential market or manage company affairs in Singapore. However, a representative office is prohibited from conducting any profitable business activity. A representative office in Singapore also cannot sign contracts, trade, raise invoices, lease warehouse, or open letters of credit in any way. The liabilities for the activities of the representative office is held by its parent company. Companies or individuals usually set up a representative office in Singapore for study purposes, gathering an understanding of the potential business environment before cashing in on any kind of business that is planned for their company in Singapore, click here to find out more info in details.
Make sure to find more information and guide regarding the company registration for each type of company that you will incorporate in Singapore and provide all the necessary things that are needed for the next steps in starting your company. Take note of the details of the requirements you must fulfill in order to be able to set up your business successfully. The more compliance you can provide to the rules and regulations, the easier your process of business expansion will be.