SBS Consulting has a reputation to extend a helping hand to set up a successful business in Singapore. By introducing entrepreneurs to a wealth of insights and opportunities in the versatile Singaporean markets, SBS Consulting is well known to perform a range of duties needed to assist business minds in every step of — company formation in Singapore.
Singapore has a unique combination of history, strategic location, stable economy, cosmopolitan culture, robust infrastructure and business friendly government policies. All these exciting features have transformed Singapore to become the most sought after destination for incorporating a business, amongst entrepreneurs and foreign companies alike.
Singapore, having the highest trade to GDP ratio in the world is offering the most open and freest economy, where 99% of imports are duty-free. Taking advantage of the Free Trade Agreements and Avoidance of Double Taxation Treaty, most of the foreign companies have geared up to ride on the Singaporean superhighway of growth. Undoubtedly, this highway will eventually connect them to major economies and markets of the world.
“Usually, foreign companies willing to enter the Singaporean market have three options, either to register a branch office, subsidiary company or set up a representative office”, said Ms. Meena, the business head of SBS Consulting.
A subsidiary company is said to be locally incorporated private limited company wherein the major shareholder is another foreign or a local company. According to Singapore Companies Act, 100% foreign ownership is allowed in the company. Thus, it becomes possible for the foreign companies to own 100% shareholding in a company by incorporating a local limited liability company.
Ms. Meena elaborated, “Helping clients in incorporating a properly structured local subsidiary company so that it can act as an outstanding tax efficient corporate entity is our prime concern. Although, the foreign company is the sole shareholder in the company, a subsidiary company is considered as a different entity than its parent company”.
When it comes to Singapore branch office, then definitely a branch office is also considered as a legal entity. However, the major difference being, a Singapore branch office is usually treated as a mere extension of the parent or a foreign company. Additionally, a branch office being a non-resident entity is not liable to avail tax exemptions or business incentives, available for the local Singapore companies.
It is necessary, that the name of Singapore branch office has to be the same as that of its head office, which also and needs to be approved by the regulatory authority before starting the actual company incorporation procedure. In addition to that, it is mandatory for the Singapore branch offices to appoint 2 local resident agents for accepting notices and services of the process on the registered business address.
Ms. Meena adding a word from her side said, “Although we provide services to incorporate a branch office, it is not an attractive option for many foreign companies. This is because, the parent company or the head office of the branch company is held responsible for the liabilities arising due to any acts of commission or omission in Singapore branch office”.
On the other hand, incorporating a representative office in Singapore is an attractive option for the foreign companies interested to explore the market without any intention to carry out any profit yielding or business activities. Being a temporary business entity, a representative office does not have any legal status in Singapore. This status restricts the office or company from getting into any commercial contracts or trade activities, either individually or on the behalf of the parent company.
“The foreign company has the unquestioned authority for the liabilities of its representative office in Singapore. A representative from the head office of the parent company is allowed to engage a local support staff, count of which should not exceed five employees. These employees or the office is authorized to indulge in market research or subsequent study activities,” said one of the SBS employees.
Although the company incorporation in Singapore is presided by the ACRA, to register a Representative Office in Singapore, you have to initiate the process through the International Enterprise Singapore. Whereas, the banking, finance, and insurance companies have to register their representative offices with the Monetary Authority of Singapore.
“SBS Consulting is indulged not only in providing Singapore company registration services, but it also helps foreign clients in choosing the appropriate company incorporation option as per their needs. Different factors like the motive behind Singapore company registration, tax considerations, tax treaties, etc. also need to be considered in finalizing the right option. SBS provides a variety of corporate solutions, ensuring that with our guidance and their efforts it will become easier for our clients to achieve their business motive” concluded Ms. Meena.
About SBS Consulting
SBS Consulting Pte Ltd is a renowned name in Singapore company incorporation services. The unique business model of SBS Consulting combining expertise and consistent quality of service empowers them to offer flawless incorporation services. Count on SBS to be the one-stop partner for setting a business in Singapore with entirely personalized and cost-effective services that only seasoned professionals can provide. Every need of an entrepreneur will be served accurately and cautiously, so everyone can start and manage the business with relative ease.
Release ID: 80252