If you wish to set foot your business in Singapore, then launching a branch would be the most cost effective way. Firstly, this would exempt you from paying the corporate taxes. This means that you need not pay any taxes unless you’re registering an office or management board here. The main advantage of being a branch rather than a subsidiary is that the mother company would be completely liable for all the undertakings that could occur in the branch. Now, let’s everything about launching a business branch here in detail…
Essentials for Launching a Branch:
As mentioned earlier, a branch is just an expansion of your foreign organization and hence, it should carry the mother company’s name while in Singapore too. As per the laws in Singapore, the branch should have two native/resident agents on behalf of your company to carry out the registration and other processes. As such, this branch can carry out any proceedings as the mother company and it would have the rights for repatriating the income and capital. However, you need to pay the taxes on the income that is generated only within the nation.
Registering a Branch:
The initial step to launch a branch is to register the name of the organization for approval. You need to submit this to the ‘Trade Register’. There shouldn’t be any problem with approval unless the name is matching with any other organization’s name. Next, you should submit the registration file with the Register. This won’t take you more than two days. Once your business is registered, you will receive a notification via e-mail from the ‘Companies Registrar’. This would also include the confirmation of your office. By using this, you can even open a bank account or can register for taxes.
Documents for Registration:
The required documents are the following:
- ‘Certificate of Corporation’ – notarized copies of mother company
- ‘Articles of Association’ – notarized copies of mother company
- Info on directors of the mother company
- Resolution on the appointment of two resident agents
- Proof of registered address
- Statement regarding the authorities of resident agents
Branch vs. Representative: Differences
In Singapore, the branches are different from representatives by their legal natures. The former category would denote the expansion of a foreign organization, while the latter would not have a legal entity. In general, the representative office wouldn’t denote a company because it won’t allow for any gaining profits. And hence, no legal status is required for it. In contrast to this, the annual filing is compulsory for the branch, although the taxes will be imposed only for the gains earned within the country only.
Considering a Branch:
You also must consider launching a business branch here because http://www.singapore-visa.net says it is ideal for all the organizations that look to have a global popularity. And, it can be done without even registering a new organization here. This is also said to be preferable than a representative for the reasons mentioned above. In simple terms, this would simplify the whole process of forming an organization in a developed country.