A foreign company planning to setup an office in Singapore has three options: 1) Branch Office; 2) Subisidiary Company or; 3) Representative Office.
A Represantive Office is not allowed to engage in any business activitiy except market research and liaisoning actitivities. Two of the ways in which a foreign company may carry on business in Singapore are by registering a Branch Office or by incorporating a limited liability company (i.e. Subsidiary Company) in Singapore.
The table below compares these three type of entities to help a foreign company decide the best option for their particular needs.
| Branch | Subsidiary | Rep Office | |
| Legal Type | Not a separate legal entity but an extention of the parent company | Separate legal entity distinct from its parent company | Has no legal status but just a temporary administrative arrangement |
| Liabilities | Liabilities extend to parent company | Liabilities limited to subsidiary | Liabilities extend to parent company |
| Entity Name | Must be the same as the parent company | Can be the same or different from parent company | Must be the same as parent company plus must include 'Representative Office' |
| Allowed Activities | Must be the same as the parent company | Can be the same or different from parent company | Can only conduct market research or coordinating activities |
| Validity Period | Registered forever until closed | Registered forever until closed | Has to be renewed every year with a 3 year maximum |
| Normal Registration Time | 1 day | 1 day | 3-5 days |
| Taxation | Taxed as non-resident entity, local tax benefits not available | Taxed as Singapore resident entity, local tax benefits available | N/A as Rep Office can not generate income |
| Annual Filing | Must file branch office as well as parent company's accounts | Must file accounts of the Singapore subsidiary | N/A |
| Bank Account | Can open bank account in Singapore | Can open bank account in Singapore | Can open bank account in Singapore to run the cost centre operations. Must be funded by the parent company. |
| Staff Hiring | No restrictions on hiring local or foreign staff | No restrictions on hiring local or foreign staff | Chief representative must be a staff member from the parent company. Can have a limited staff only. |
| Appointment of Officers | Must appoint at least two locally resident persons | Must appoint at least one local resident director | Must appoint a Local Chief Representative who will relocate from headquarters |
| Registration Cost | Government fee of about S$315 | Government fee of about S$215 | Government fee of about S$200 |
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