Branch Office vs Representative Office vs Subsidiary Company Comparison in Singapore
The friendly business environment of Singapore has prompted many foreign entrepreneurs to set up companies in Singapore. While you may be willing to relocate to this country in order to incorporate your business, the important question that you will have to deal with is which is the type of company that you would incorporate. There are 3 ways by which you can make your business presence felt in Singapore; by setting up a Branch office, a Subsidiary Company and a Representative office.
There are some differences in the operations of each of these three types of business setups. So, let us compare all the 3 types in detail, in order to throw more light on which type you want to prefer to incorporate a Singapore company.
Comparison of Singapore Branch, Subsidiary & Representative Office
| Comparison Factors | Subsidiary Company | Branch Office | Representative Office |
| Company Name | Can be similar or different from the parent company | Has to be same as that of the parent company | Must be the same as that of the parent company |
| Valid Up to | Once registered will last forever until closed | Once registered will last forever until closed | After a maximum of 3 years validity it must be renewed every year |
| Legal Status | A separate legal entity | An extension of the parent company, not a separate entity | A temporary setup of the parent company for administrative tasks. |
| Liability | Not liable to the parent company | It is liable to the parent company | It is liable to the parent company |
| Registration Timeline | 1 to 2 days | 1 to 2 days | 3-5 days |
| Officers’ Appointment | Need to appoint at least 1 local director | Need to appoint at least 2 local agents | Need to appoint a chief representative of the parent company |
| Staff Employment | Can hire any number of local or foreign staff | Can hire any number of local or foreign staff | Apart from the chief representative, a maximum of 5 employees can be hired |
| Activities Permitted | Can be similar or different from the activities of the parent company | Must be the same as that of the activities of the parent company | Can conduct administrative tasks, market research and feasibility studies |
| Opening of Bank Account | Must open a corporate bank account in Singapore | Must open a corporate bank account in Singapore | Can open a bank account in Singapore funded by the parent company |
| Taxed Under | Taxed as a Singapore resident | Taxed as a non-resident in Singapore | Not applicable as it does not involve in generating revenue |
| Annual Tax Filing | Need to file the accounts of the subsidiary company only | Need to file the accounts of both; the branch office in Singapore and its parent company | Not applicable |
| Audited Accounts | Must submit the audited accounts to ACRA and IRAS | Must submit the audited accounts to ACRA and IRAS | Not applicable |
Thus, the above table illustrates the specific differences that prevail in these 3 processes of registration of a Singapore company. In case you plan to incorporate a Singapore Company, we will assist you in the process and suggest you the suitable way of getting registered in the country as a business entity.
