Options for foreigners when incorporating company in Singapore

1. As the businesses are going global at a rapid rate like they have never been before, Singapore because of so many good and valid reasons has been one of the first and most preferred choices for foreign individuals and companies wanting to set up business in Singapore. Options for foreigners when incorporating company in Singapore

2. Fig- Top countries for foreign exchange reserves

3. Option 1: Subsidiary company registration in Singapore Subsidiary company in Singapore is an incorporated private limited company whose majority shareholder is another local or foreign company. • Since Singapore allows 100% foreign ownership in companies, a foreign company may incorporate a limited liability company in Singapore (i.e. subsidiary company) in which 100% of the shareholding can be owned by the respective foreign company.

4. Option 2: Branch office A Singapore branch office is a registered legal entity like a subsidiary company is. However, unlike a subsidiary, a branch office is treated as an extension of the foreign company.  • Different from Singapore subsidiary company in which liabilities are not extended to the parent company, the foreign company’s head office bears the ultimate responsibility for any liabilities arising due to the acts of commission or omission of the Singapore Branch Office. 

5. Option 3: Representative Office For a start, many foreign companies at times are only interested in exploring the market or managing the company affairs without conducting any business activity of profit, allowing them to understand the market first. • Such a company, as per Singapore laws can setup business in Singapore under a representative office. Since representative office is a temporary setup without any legal persona, it cannot enter into any contract, engage in trading directly or on behalf of the foreign company, lease warehouse, raise invoices, an open letter of credit, etc. 

7. Which Option to Choose? The answer to which option to choose depends on various factors, mainly the goals, purposes and company sizes.  If you are only looking to do market research in Singapore and aren’t looking for a lengthy procedure of registration, tax and audit, A representative office is a short term arrangement that is advisable. In general, a representative office cannot continue its operations beyond three years and must upgrade itself to a branch office or subsidiary before or at the end of the three-year period.

8. For More information visit this link: http://precursor.com.sg/options-foreigners-incorporating-company-singapore/

9. Contact us: Precursor Group Pte ltd. • Address : 60 Albert Street #14-04 OG • Albert Complex Singapore • (189969) • Phone : (65) 63365500 • Email id : clients@precursor.com.sg • Website : http://precursor.com.sg