Thanks to its strategic location and business-friendly policies, Singapore has successfully established its status as the financial hub of Asia. It is considered among the best investment hotspots of the world, and with an efficient infrastructure for business operations, Singapore is surely a great place for foreign investors and entrepreneurs. If you wish to setup your company here, there are three different options and ways. In this post, we will guide you through these business structure options and how you can choose one depending on the business goals.
Open New Company in Singapore
- Subsidiary Company. This is much like opening a new company in Singapore. This will be a private limited enterprise, and one or many of the shareholders will be foreign entities, either individuals or the parent company. Singapore allows entrepreneurs and foreign firms to have 100% ownership, which is a great advantage. Basically, if you start your subsidiary company here, you can have 100% of the shareholding. For mid-sized and small companies looking for presence in Singapore, this is probably the best option by all means. Once you register company in Singapore, the company will be treated as a separate entity from your other companies or parent brand.
- Branch Office. As the name suggests, this is more like having a branch in Singapore, and therefore, the liabilities, debts and losses are shared between the branch and the parent company. The branch office must also submit the accounts of the parent company after audit, something that many entrepreneurs and investors don’t prefer in the first place. As such, securing investment for branch offices can be harder. While the office will be registered with ACRA, it will be treated as a foreign company.
- Representative office. If your company needs a setup in Singapore for research and other purposes such as coordination, you should consider a representative office, which is more like a short-term arrangement. Please note that you cannot have a representative office in Singapore for an offshore company for more than three years. If you wish to retain your office, you must upgrade your business into a branch office or subsidiary, before the end of the term.
If you need more assistance to register company in Singapore, feel free to talk to us at VentureHaven. As one of the leading consultancy services in the country, we can offer assistance on varied matters, including the investment choices and other procedures that might be required for the initial setup to open new company in Singapore.