Guide to Registering a Singapore Branch Office in 2025

Guide to Registering a Singapore Branch Office in 2025 | Bestar

Guide to Registering a Singapore Branch Office in 2025

For foreign companies seeking to expand their business operations, establishing a presence in Singapore offers a strategic gateway to Asia and the global market. Registering a branch office is a popular option, allowing foreign firms to tap into Singapore's thriving economy and business-friendly environment.

This guide provides a comprehensive overview of the process, from understanding what a branch office is to the essential post-incorporation requirements.

What is a Branch Office in Singapore?

A branch office in Singapore is not a separate legal entity from its parent company. Instead, it is a direct extension of the foreign corporation, allowing it to conduct business activities under the parent company's name. This structure means the parent company retains full control over the branch's operations.

Pros and Cons of a Branch Office

Choosing a branch office over other structures, like a subsidiary, has distinct advantages and disadvantages.

Benefits:

• Direct Control: The parent company maintains direct and complete control over the branch office's management and operations.

  
  

• Cost-Effective: Establishing a branch office is often less complex and more affordable than incorporating a subsidiary.

  
  

• Brand Leverage: The branch can directly benefit from the established brand reputation and credibility of its parent company.

Drawbacks:

• Non-Resident Status: A branch office is considered a non-resident company for tax purposes. This means it is ineligible for many of Singapore's corporate tax incentives, grants, and tax exemptions on foreign-sourced income.

  
  

• Liability: Since it is not a separate legal entity, the parent company is fully liable for all debts and legal obligations incurred by the branch office.

  
  

• Taxation: Branch offices do not qualify for double taxation relief under Singapore's extensive network of Double Taxation Avoidance Agreements (DTAAs).

How to Register a Branch Office in Singapore

The registration of a branch office is a streamlined process managed by the Accounting and Corporate Regulatory Authority (ACRA). Foreign companies are required to engage a registered filing agent to manage the submission on their behalf.

Key Requirements:

• Local Representative: The branch office must appoint at least one local representative who is a Singapore citizen, a Singapore permanent resident, or an Employment Pass (EP) holder.

  
  

• Registered Office Address: A physical registered office address in Singapore (not a P.O. Box) is mandatory.

Step-by-Step Registration Process:

1. Name Application and Approval: The branch office must have the exact same name as the parent company. The name must be approved by ACRA, which may reject it if it is identical or too similar to an existing company's name or a protected trademark.

   
   

2. Document Preparation and Submission: Before the application, the following certified documents must be prepared for submission to the registered filing agent:

   
   

   • Parent company's certificate of incorporation.

   • Parent company's constitution (or equivalent document).

   • A list of the directors of the parent company.

   • The address of the parent company outside of Singapore.

   • Personal particulars of the authorized local representative.

   • A statement of consent from the appointed local representative.

   • The parent company's audited financial statements.

   • A notice providing details of the parent company's registration number, business type, and legal structure.

Once all documents are provided to the filing agent, the registration process can be completed swiftly, often within 20 minutes of successful submission.

Post-Incorporation Essentials

After a branch office is successfully registered, there are several key compliance requirements to ensure smooth and legal operations.

• Annual Filing Requirements: Branch offices must comply with annual filing obligations with both ACRA and the Inland Revenue Authority of Singapore (IRAS).

  
  

  • Financial Statements: Audited profit and loss statements, as well as a statement of assets and liabilities, must be prepared in compliance with Singapore Financial Reporting Standards (FRS). These must be submitted within 60 days of the parent company's Annual General Meeting (AGM).

  • Estimated Chargeable Income (ECI): The ECI, which is the branch's revenue after deductions, must be filed with IRAS within three months of the financial year end (FYE).

  • Corporate Income Tax: Annual corporate income tax returns are filed with IRAS by November 30th each year, based on a preceding year's income.

    
    

• Taxation: As a non-resident entity, a Singapore branch office is subject to corporate income tax on profits earned in Singapore. It does not qualify for resident-company tax benefits or DTAA relief.

  
  

• Business Licenses and Permits: Specific industries, such as financial services, travel agencies, and food & beverage, require special licenses or permits from relevant government authorities before commencing operations.

  
  

• Goods and Services Tax (GST): GST, currently at 9%, is levied on the supply of most goods and services in Singapore. A branch office is required to register for GST if its annual taxable revenue exceeds S$1 million.

  
  

• Corporate Bank Account: A corporate bank account can be opened with a local or international bank in Singapore. Some banks may allow account opening without the physical presence of the foreign owner.

  
  

• Customs Registration: If the branch office intends to engage in import, export, or transshipment activities, it must obtain a Customs Registration (CR) number from Singapore Customs.

  
  

• Central Provident Fund (CPF): CPF is a mandatory social security savings scheme. Employers must contribute to the CPF for all local employees who are Singapore citizens or permanent residents earning more than S$50 per month.

Partner with a Professional Service Provider Bestar

Partnering with Bestar can simplify the entire registration process. Services like company incorporation, compliance, and taxation support ensure that all necessary requirements are met efficiently.

Our professional team can prepare and file the required documents, liaise with government agencies, and provide ongoing support to keep your branch office in good standing with Singaporean authorities. By leveraging expert assistance, foreign companies can save time and effort, allowing them to focus on their core business activities.

FAQs about Registering a Singapore Branch Office

• What are the primary requirements for a Singapore branch office? Key requirements include engaging a registered local filing agent, appointing a local representative, and having a registered office address in Singapore.

  
  

• How can a firm like Bestar help me register a branch office? A professional service provider can guide you through the entire process, from document preparation and name application to filing with ACRA and IRAS, ensuring full compliance with all regulatory requirements.

Guide to Registering a Singapore Branch Office in 2025

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