Establishing an offshore company in Singapore requires a careful selection of the right business structure. This is because it is an essential factor in shaping your new company overseas. But, how will you know if you’re selecting the right one?
The section below serves as a guide for company formation in Singapore. It covers the various business vehicles for foreign companies.
Form Your Company with the Right Business Structure
The registration process in Singapore for foreign businesses is clear and straightforward. Once the company name is reserved and all documents are submitted to Accounting and Corporate Regulatory Authority (ACRA), then the registration is completed online.
Now, settling for the business vehicle of your company can be challenging. That is if you are not equipped with the knowledge about it.
Business Structures for Foreign Companies
A hasty decision-making for choosing the business vehicle will result in unfavourable outcomes. This is because business structure affects not only the amount of paperwork to set up the company but also liabilities, tax and profit-making ventures.
These are the various business vehicles for offshore companies in Singapore as shown below:
A branch office is an extension of the parent company and bears its name as well. It is not a separate legal entity and is not regarded as a resident entity in Singapore. They are not entitled to tax exemptions and business activities are the same as the parent company. This type of business structure is suitable for businesses who want to settle for a short-term market share.
This business structure is ideal for businesses who want to understand their target markets, as they are limited to market research or coordinating tasks. It has a temporary administrative arrangement which has to be renewed annually. Plus, a representative office is only valid for a maximum of three years.
Foreign companies can be set up as a subsidiary. This is ideal for companies which prefer to establish in Singapore on a long-term basis. Also, it can be 100% owned by foreign companies and is regarded as a separate entity from parent companies. Additionally, since this business structure will set the company as local tax-resident, it is entitled to tax exemptions and incentives.
These business vehicles will only work best if it is in line with the company’s goals. For this reason, consulting with professionals on offshore company setup is essential.
Get an Expert’s Advice for Offshore Company Setup
Whether it is a representative, branch, or subsidiary company, choosing the right platform is the key element in shaping your company. Of course, each structure has its own benefits to meet company objectives. But, it is recommendable to seek professional advice and determine the optimal structure for your company.
Contact a company formation specialist today and book a FREE consultation today to discuss your company goals. Their range of expertise will guide you in choosing the best business structure and setting up your company in Singapore.
Foreign Companies Setting up in Singapore, Singaporelegaladvice.com
Choose Your Business Structure, Entrepreneur.com