Top 3 Options of foreign company set up in Singapore
Singapore is well-positioned to be the regional headquarters for international corporate companies looking to grow their business operations in the Asia Pacific region, thanks to its modern facilities and infrastructure, bilingual and well-educated workforce, attractive government incentives, and strategic location in the region.
Once you’ve started the process of forming a foreign company registration Singapore process, you’ll find that getting to the starting line is more difficult than the journey itself. When considering how a foreign compay setup in Singapore is being done, a foreign corporation or multinational company in Singapore has many choices to choose from, depending on the expected nature and extent of operations. Singapore, in addition to its extensive network of free trade and tax deals, has one of the most appealing corporate tax systems in the world. While it has the world’s third-lowest marginal tax rate, its effective tax rate is even smaller as compared to other more developed countries.
Do you want to integrate or grow your company registration Singapore process? Singapore’s reputation as a strategic gateway to South East Asia makes it an appealing hub for foreign companies looking to develop or expand their operations in the area. If you are a non-Singaporean and want your foreign company setup in Singapore to establish a business here, it might be worthwhile to consider hiring a specialist firm to register your company in Singapore. In the meantime, here are three business formation options for international companies:
What are the different options of foreign company setup in Singapore?
- Representative Office
- Branch office
- Subsidiary Corporation (private limited company)
Option 1: Create a representative office
When it comes to company registration Singapore procedures, foreign companies should start with a representative office. Such setups are meant to be temporary and short-term, and they cannot participate in any commercial activities that would produce revenue otherwise. Furthermore, the maximum number of workers that the office can have at any given time is five.
A foreign business must meet a few legislative criteria in order to successfully create a representative office:
- The head office will name a Chief Representative to move to Singapore.
- The foreign entity’s revenues should reach $250,000 USD.
- Documented evidence that the international company has been in operation for more than three years.
Furthermore, the foreign company setup in Singapore must meet the following annual compliance requirements:
- Its company registration Singapore process must be renewed on an annual basis.
- After the initial three-year cycle, upgrading to a Branch Office or Subsidiary Company
Option 2: Open a branch office
The next choice is to open a branch office in Singapore. Branch offices are extensions of the international company and, as such, are permitted to perform related business practices that fall within its scope of business. Unlike a registered office, it can repatriate all of its profits and income, and there are no restrictions on the number of workers it can hire. In the long run, establishing and registering a branch office in Singapore could be a better choice than a representative office.
To successfully establish a branch office in Singapore, the foreign company must meet the following legal requirements:
- A registered office address in Singapore is needed for the branch office.
- A single agent who is normally resident in Singapore will be selected.
In addition, the regional office must meet both of the following annual compliance requirements:
- Submission of its own annual audited financial statements.
- Submission of the head office’s annual audited financial statements.
Option 3: The subsidiary corporation
A subsidiary corporation is effectively a private limited company in which a corporate body serves as the majority shareholder. It is possible for the foreign company setup in Singapore to own it entirely. It can not only perform its related business operations in Singapore, but it can also repatriate and account for all of its earnings. There are no restrictions on how many workers it may have.
The foreign business must meet the following legislative conditions in order to register as a subsidiary company:
- A registered office address in Singapore is needed for the subsidiary.
- At least one director must be named who is normally resident in Singapore.
- The appointment of a business secretary.
In addition, the following annual compliance requirements must be met:
- Annual audited financial statements must be submitted.
- Annual Returns must be filed by the deadline.
- To be done is the filing of tax returns.
Start your company registration Singapore process today
WLP Group assists entrepreneurs and foreign companies in making the best decisions while establishing themselves in Singapore. Read our guides on incorporation, work permits, corporate enforcement, and taxes to get started with your business registration. Alternatively, you can contact us to speak with one of our specialists.
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