Expanding Your Business to Singapore

The global opportunities have made it easier for business owners to take their business to new potential. If you intend to expand your business to Singapore, there are many options you can choose from. The first is to set up a branch office and the other is to create a subsidiary company. Every option has its unique features which you need to weigh before making a decision. It is ideal to compare both the options and make a well informed decision. Let us compare both the options here.

Legality: The first and foremost concern for a business is the legality. A branch office will not be recognized as a separate legal entity since it is only considered as an extension of the parent company. Hence, a subsidiary company is the best option here. It will enjoy the benefits of a separate legal entity even if the parent company holds 100% share of the subsidiary.

Operations: Keeping the legality concern in mind, the branch office is not a separate legal entity. Hence, the operations cannot vary from the parent company. If you wish to change the operations of the business, you will be required to create a subsidiary company. But if you only want to extend the business operations, you could open a branch here. Decide this well in advance as you cannot change the business activities after the incorporation of the company.

Setting up the company: In order to open a branch in Singapore, you need to have a registered resident agent in the country for the purpose of incorporating the branch office. If you choose to create a subsidiary company, there is a restriction with regard to the number of members. You can only have 50 members at one point of time. Further, you also need a minimum of one resident director in the subsidiary company and there is no restriction on the number of shareholders.

Filing: A subsidiary company is not liable to file any financial statements of the parent company but the branch office will be required to file the audited financial statements in addition to the audited accounts of the parent company. For information about the same, you can visit this site.

Taxation: The branch office is not a separate legal entity, hence the tax exemptions will not be extended to it. However, the subsidiary company will be eligible for tax exemptions that are applicable to the resident companies.


You can decide whether you want to open a branch or a subsidiary company by comparing the options and weighing the pros and cons. A lot of business owners prefer the branch office as they can capture a whole new market and keep their company intact. Companies entering a new business prefer subsidiary companies for the taxation benefits and the legal identification they receive after the incorporation of the business in Singapore. You need to make a decision based on your requirements and your business options. Consider the costs associated with both the options before choosing one.

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