Singapore Foreign Office
UNLOCK BUSINESS GROWTH POTENTIAL IN NEW MARKET
Why Singapore?
The shift in the world’s centre of economic gravity from West to East plays to Singapore’s competitive advantage, with its strategic location at the crossroads of global trade and its growing appeal as an international hub for wealth management and financial services.
#2 in the world for the easiest place to do business: Ease of Doing Business Index 2019, World Bank
#1 Best business environment in the Asia Pacific and the world: Business Environment Rankings (BER) 2019, The Economist Intelligence Unit
#4 in the world for the least corrupt economy: Corruption Perceptions Index 2018, Transparency International
#1 in Asia for effective governance and enforcement of rule of law: Rule of Law Index 2018, World Justice Project
#2 in Asia and #7 in the world for best logistics supply chain performance: Logistics Performance Index (LPI) 2018, World Bank
#2 most competitive economy in the world: Global Competitiveness Report 2018, World Economic Forum
#2 in the world for economic freedom: Economic Freedom Index 2018, Heritage Foundation
#3 in the world for best Intellectual Property (IP) protection: Global Competitiveness Report 2018, World Economic Forum
#1 in the Asia Pacific and #5 in the world for Best global innovation: Global Innovation Index 2018
#1 in achieving human capital (knowledge, skills, and health) in the world: Human Capital Index 2019, World Bank
#2 in the world for best labour/employer relations: Global Competitiveness Report 2018, World Economic Forum
#3 in the world for the most motivated workforce: IMD World Competitiveness Yearbook 2018
Singapore Branch vs Subsidiary vs Representative Office
| CATEGORY | SINGAPORE REPRESENTATIVE OFFICE | SINGAPORE BRANCH OFFICE | SINGAPORE SUBSIDIARY |
|---|---|---|---|
| Legal Entity | Has no legal status, a temporary administrative arrangement | Not a separate legal entity but an extension of the parent company | Separate legal entity distinct from its parent company |
| Entity Name | Must be the same as parent company plus must include ‘Representative Office’ | Must be the same as the parent company | Can be the same or different from parent company |
| Scope of Liabilities | Liabilities extend to parent company | Liabilities extend to parent company | Liabilities limited to subsidiary |
| Business Activities | Can only conduct market research or feasibility studies | Must be the same as the parent company | Can be the same or different from parent company |
| Validity of Registration | Has to be renewed every year up to a maximum of 3 years | Registered forever until closed | Registered forever until closed |
| Taxation | Not applicable as representative office cannot generate income | Taxed as non-resident entity, local tax benefits not available | Taxed as Singapore resident entity, local tax benefits available |
| Appointment of Officers | Must appoint a Chief Representative who will relocate from headquarters | Must appoint at least one local authorised representative | Must appoint at least one local resident director |
| Scope of staffing | Chief Representative must be a staff member from the parent company. Can have only five employees. | No restrictions on hiring local or foreign staff | No restrictions on hiring local or foreign staff |
| Annual Filing to ACRA | Not applicable | Must file branch office as well as parent company’s accounts | Must file accounts of the Singapore subsidiary |
| Opening of Bank Account | Can open bank account in Singapore to run the cost centre operations. Must be funded by the parent company. | Can open bank account in Singapore | Can open bank account in Singapore |