A branch office is a type of company that a foreigner may incorporate in Singapore with an aim to expand an already existing business in a different country you already have. As a foreigner, it is not a surprise if you are interested in doing business within one of the best places in the world to conduct business with its well governed laws and regulations, making it a country that is clean for company operations. A branch office is one of the three options of business entity that can be started in Singapore. Opening a branch office within the country may give you the opportunity to enlarge the scope of your business, reaching new customers, and gaining more profits. It may be daunting for foreigners to start up a business in a different country. However, in Singapore, there is nothing to worry about. It is simple and rather easy to understand.
In Singapore, there is a law that requires all activities in the purpose of profit that conducted continuously must be registered with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. Company registration in Singapore is mandatory in order for a company to be authorized for business. A branch office in Singapore, once it is registered, will be approved as a legal entity. A branch office in Singapore is considered as an extension of the foreign company instead of being a separate entity, making the foreign parent company responsible for the liability and debts of the branch office.
For foreigners, it is a must to use the service of a professional firm in Singapore to navigate through the process of company registration. There are several to choose from, such as a law firm, accounting firm, or corporate secretarial firm.
In order to commence a successful company registration, there are several things you must be aware of and prepare.
1. Company Name
You must register the name of the branch office as the same one as its parent company.
2. Company Officers
A Singaporean branch office must appoint a resident director. This person must be with a minimum age of eighteen and is a Singapore resident, a Singapore citizen, or a person with an employment pass.
3. Constitution and Activities
The foreign parent company must direct all of the branch office’s activities, shareholders, and company structures without separate constitution.
4. Company Registered Address
A branch office must register a Singapore address mentioning the company name and incorporation place within all business correspondence as required by the Singapore Companies Act.
Upon fulfilling all the administrative requirements, you must prepare the registration documents. These documents are to be submitted in English. The required documents are:
- A copy of Certificate of Incorporation and Constitution of the foreign company
- The particulars of the foreign company directors
- A memorandum of appointment of the resident director of the branch office
- A memorandum stating the powers of the authorized representative executed by or on behalf of the foreign company
- Details of the Singapore branch office address
- Latest audited financial statements of the parent company
