Pros and Cons Of Each Package Featured

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Each form of establishing new company has each own pros and cons. Which one should be selected depends on parent company's conditions and purposes.

 

 

 

 

 

Singapore Branch Office

Singapore Representative Office

Singapore Subsidiary Company

Legal Type

Not a separate legal entity but an extension of the parent company

Has no legal status but just a temporary administrative arrangement. Requirements: Parent Company must have sales turnover of more than US$ 250,000/- with years of establishment of at least 3 years.

Separate legal entity distinct from its parent company

Liabilities

Liabilities extend to parent company

Liabilities extend to parent company

Liabilities limited to subsidiary

Entity Name

Must be the same as the parent company

Must be the same as parent company plus must include 'Representative Office'

Can be the same or different from parent company

Allowed Activities

Must be the same as the parent company

Can only conduct market research or coordinating activities

Can be the same or different from parent company

Validity Period

Registered forever until closed

Has to be renewed every year with a 3 year maximum

Registered forever until closed

Taxation

Taxed as non-resident entity, local tax benefits not available

N/A as Rep Office cannot generate income

Taxed as Singapore resident entity, local tax benefits available

Annual Filing

Must file branch office as well as parent company's accounts

N/A

Must file accounts of the Singapore subsidiary

Bank Account

Can open bank account in Singapore

Can open bank account in Singapore to run the cost center operations; must be funded by the parent company

Can open bank account in Singapore

Staff Hiring

No restrictions on hiring local or foreign staff

Chief representative must be a staff member from the parent company. Can have limited staff only.

No restrictions on hiring local or foreign staff

Appointment of Officers

Must appoint at least two locally resident persons

Must appoint a Chief Representative who will relocate from headquarters

Must appoint at least one local resident director

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