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Branch office Vs Subsidiary company in Singapore?

Branch Office and Subsidiary Company in Singapore are two of the most well known and preferred types of company incorporation in Singapore from foreigner’s perspective. In this post, we’re comparing both Singapore branch office and Singapore subsidiary company to help you comparing their pros and cons, specialties and features in order to identify the best Singapore company incorporation option that works for you. <br><br>For More information visit this link: <br><br>http://precursor.com.sg/branch-office-subsidiary-company-singapore/<br>

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Branch office Vs Subsidiary company in Singapore?

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  1. Branch office Vs Subsidiary company in Singapore?

  2. Branch Office and Subsidiary Company in Singapore are two of the most well known and preferred types of company incorporation in Singapore from foreigner’s perspective. In this post, we’re comparing both Singapore branch office and Singapore subsidiary company to help you comparing their pros and cons, specialties and features in order to identify the best Singapore company incorporation option that works for you. 

  3. 1. Separate Legal Identity and Asset Protection A Singapore branch office is considered an extension of the parent company and is not a separate legal entity of its own. This means that the liabilities of a Singapore branch office are derived from the liabilities and assets of the respective parent company that may be located in a foreign nation. It can, however, be sued in Singapore in the case of any dispute. Hence the assets of the parent company will be not protected in this case.

  4. A subsidiary company in Singapore, on the other hand, is a separate legal entity from the foreign company even if the foreign company holds 100% shares. This means that the foreign company does not have to bear the losses and liabilities of the Singapore Subsidiary company. In this case, the assets of both the subsidiary and the parent company can be protected even if either company are sued.

  5. 2. Activities conducted Singapore branch office, as being an extension of its parent foreign company is only allowed to carry out activities defined in its constitution and cannot perform other activities in Singapore that are not aligned with the activities of the respective foreign company.

  6. Singapore subsidiary company can, however, be made to perform any activity, as long as these are defined clearly at the time of incorporation of the respective Singapore subsidiary company. Being a separate legal entity from its parent foreign company, aligning with the activity of foreign company is not necessary.

  7. 3. Filing Returns Singapore subsidiary companies need to Prepare a set of financial statements and to submit their financial statements in extensible Business Reporting Language when filing annual returns with the Accounting and Corporate Regulatory Authority in Singapore. However, branch offices are required to submit the audited accounts of the parent company as well as the audited financial statements of its branch office.

  8. 4. Tax exemptions Incorporation of branch office in Singapore is not considered a resident for the purposes of tax. Thus,  making it ineligible for tax incentives that are available for private limited companies in Singapore. Registration of a Singapore Subsidiary company, on the other hand, is very tax efficient when it comes to them working as an independent organization. A Singapore subsidiary company enjoys various benefits, exemptions and advantages that are made available for Singapore resident companies.

  9. In summary, a branch office is preferred by multinational corporations (MNCs), banks and insurance companies that want to use the brand name and finances of the parent company to secure licences and business contracts, while a subsidiary company is preferred by many foreign companies when establishing a business entity in Singapore. No option is better than another and may apply to your unique situation and needs. What’s advisable is that you carefully compare both, evaluate what works best in accordance with your need and situation and then take an informed choice.

  10. Whether you are still confused about which Singapore company incorporation option is best in your situation or wanting to get a company incorporated. Precursor has years of experience, award-winning team of highly qualified professionals, proven track record and does rank amongst top 30 firms in Singapore. Right from company incorporation to accounting, auditing, company secretariat and others, precursor has a full range of corporate services to help your business grow.

  11. For More information visit this link: http://precursor.com.sg/branch-office-subsidiary-company-singapore/

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