Singapore Company formation Guide to Foreign Companies

There is a line of difference between incorporating Singapore companies and incorporating foreign companies in Singapore. There are some options available for foreign companies that do not want to open a full-fledged Singapore company. Instead they can effectively extend the operations of their own company into Singapore by forming a branch office or a representative office in Singapore. It is interesting to note that for Singapore company formation, a representative of the foreign company is not required to travel to Singapore.

Service providers like Servolve, makes it an easy process. The documentation required would be informed in advance. Once the same is received, incorporation process will be commenced without further delays. The same can be completed within a period of 7-10working days on average. So what are the options available.

Singapore Branch Office

A branch office is an extension of the foreign entity. It does not enjoy a separate legal entity status in Singapore and any claims against the branch office in Singapore can be directed against the foreign parent. The branch should have activities similar to parent entity and cannot indulge in independent activities. The branch is mainly allowed to indulge in activities relating to market research, sales support etc and cannot indulge in activities that are of revenue generating nature. All the revenue generation for such offices should be from the parent company in country of domicile.  It is possible for a branch office to relocate employees to Singapore through the option of a Singapore Employment Pass.

The branch can remain as long as the parent company is in operation until it is wound up or struck off. There are no renewals required for a branch office year on year.

Singapore Representative Office

A representative office is another form of organisation that foreign entities can adopt in Singapore also. A representative office is not considered as a separate entity and is only meant to act as a market research office in Singapore. Note that if the company wants to pursue full-fledged marketing and sales activities in Singapore they will have to get registered as a branch office rather than as a representative office. A representative office needs to be renewed every year and it has an established life time of only 3 years after which it has to be converted to a branch office or a Pte.Ltd. mandatorily.

For a comprehensive understanding of how to incorporate a branch or representative office in Singapore, please contact Servolve at info@servolve.com. Servolve is a Singapore based professional services provider. Our service offering include Singapore/foreign company incorporation, corporate secretarial and support services, Singapore accounting and Singapore taxation. For more information, please refer www.servolve.com.