Singapore Branch Office: Its Benefits and Disadvantages

Foreign companies can have a business presence in Singapore by registering a branch office to the Accounting and Corporate Regulator Authority (ACRA), allowing them to explore the market and expand their operation.
 
Sept. 22, 2010 - PRLog -- Foreign companies can have a business presence in Singapore by registering a branch office to the Accounting and Corporate Regulator Authority (ACRA), allowing them to explore the market and expand their operation.

According to company registration specialist Rikvin, this business model is treated as an extension of its parent company which means that it should only conduct the activities performed by the main office.
As an extension of a foreign company, a Singapore branch office is required to have the same name unless if it is deemed indecent or another local business entity is using it. To know more about the requirements of branch office, follow the link: http://www.rikvin.com/incorporation/singapore-branch-office-registration/

While it is relatively easy for a well-established foreign company to register a branch office in Singapore, Rikvin said that it must hire a professional firm that will conduct all the processes involved in business registration.

“The government requires foreign companies and businessmen to hire a professional business registration firm that will act on their behalf. In this way, they can conform to all the legal requirements stated under the country’s corporate law,” Rikvin added.

To legally operate a Singapore branch office, there are several requirements which must be performed by foreign companies.

One of these is the appointment of two local residents who will act as an agent and will supervise the branch office.  And according to Rikvin, an agent can be a Singaporean citizen or holder of Employment Pass, EntrePass, or Permanent Residence Status who will personally manage this auxiliary office.
In addition, a branch office should have a registered local office where it should keep all the statutory documents.

Meanwhile, having a branch office provides several advantages to any foreign company including the ability to conduct business in Singapore, which is one of the strongest economies in the world; explore more business opportunities; and directly interact with its local distributors and agents.

While this business model has several advantages, foreign companies should realize that there are some arrangements and requirements that may not be beneficial on their part.

For example, foreign companies do not enjoy limited liability which means that they are responsible for all the losses and debts of their branch office which is considered as their legal extension.

Another disadvantage is that a branch office, being a non-resident business entity, is not eligible for local tax benefits and exemptions.

And lastly, this business model is prohibited to engage in business activities that are not performed by its parent company.

Aside from a branch office, a foreign company may also register a Singapore subsidiary company or Singapore representative office.
To know more about Representative office, follow link: http://www.rikvin.com/business-types/singapore-representa...
and for more info about subsidiary office, follow link: http://www.rikvin.com/incorporation/setting-up-a-singapor...

For more information visit:
http://www.rikvin.com/
address: 120 Telok Ayer Street Singapore 068589
email: info@rikvin.com
phone:+6563034614

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Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.
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Rikvin Pte Ltd PRs
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