Subsidiary Company vs Branch Office vs Representative Office
| Subsidiary Company | Foreign Company Branch Office | Representative Office | |
|---|---|---|---|
| Entity Name | Need not be the same as parent company | Must be the same as parent company | Must be the same as parent company |
| Business Activities Allowed | Can conduct all business activities | Must be the same business activities as the parent company | Can only conduct market research or coordinating activities |
| Suitable For | For local or Foreign Companies who wish to expand their operations in Singapore | For Foreign Companies who wish to expand their operations in Singapore | For Foreign Companies who wish to set up temporary vehicle in Singapore to conduct research and act as liaison office |
| Disadvantages | Continuing Compliance Obligations eg Financial Reports, Audit, AGMS, Annual Filings, etc | Continuing Compliance Obligations eg Financial Reports, Audit, Annual Filings, etc | It is a temporary vehicle and cannot generate revenue |
| Ownership | Can be 100% foreign or locally owned | 100% owned by parent company | No Ownership |
| Separate Legal Entity | Yes | No | No |
| Cap on Number of Members | Yes, max 50 | Not Applicable | Not Applicable |
| Minimum Setting up Requirement | One shareholder , which can be foreign or local individual or corporate shareholder AND must have at least one resident director | Must have two Singapore Resident Agents | Must appoint a Chief Representative who will relocate from headquarters |
| Limited Liability | Yes | No | No |
| Audit Accounts | Yes | Yes | No |
| Filing of Accounts with ACRA and IRAS | Yes | Yes | No |
| Annual Filing | Must file audited report of the Singapore subsidiary with ACRA | Must file branch office’s as well as parent company’s audited reports with ACRA | Not Applicable |
| Taxation | Taxed as Singapore resident entity, local tax benefits eligible | Taxed as non-resident entity, local tax benefits not eligible | Not Applicable |
| Cessation of Business upon Death of a Member/Partner | No. Equity shares go on in perpetuity | No | Not Applicable |
| Validity Period | Perpetually until deregistered | Perpetually until deregistered | This is a temporary Setup. It is intended not to last more than 3 years |
| Usual Registration Time | 3 hours | 3 hours | 3-5 days |
| Appointment of Officers | Must appoint at least one local resident director | Must appoint two resident agents | Must appoint a Chief Representative who will relocate from headquarters |
| Governing Body | ACRA & IRAS | ACRA & IRAS | International Enterprise Singapore |
