Sep 29, 2010 – A branch in Singapore is a business model for foreign companies operating in the country to expand, according to the company's business Rikvin registration.
Legally, a branch is an extension of its parent company, which is used with the same name, except when it is used by another organization in Singapore, the authorities consider it as a means of obscene or vulgar.
Another ramification of being an extension of a foreign company, a branch is not a resident company which is not tax credits and exemptions qualified local agents.
"Because there is a branch involved locally, this will not automatically qualified for local tax credits and exemptions. On the other hand, a dependent, a different kind of institution of a foreign company can have in the organization, are entitled these benefits, and is integrated in Singapore, "said Rikvin.
According to business registration, nowadays, more foreign companies choose to register a subsidiary company over branch office.
Despite the disadvantage of a subsidiary, in fiscal terms, this allows a foreign company has direct control over its management, which is not the case of a subsidiary, in which control should be provided on site.
It is important to note that foreign companies do not mean to enjoy limited liability may be held liable for the acts, debts, losses and liabilities of its subsidiary in Singapore.
When it comes to business strategies and income generation, a branch in Singapore is prohibited to conduct activities outside the primary nature of the business. For example, a branch only sells food, whether the activities of the parent company.
It is now a legal obligation to appoint two residents of Singapore can be a natural citizen or Employment Pass holders, EntrePass or permanent resident and is responsible for all activities within a branch. In addition, they are also personally liable for the sanctions imposed against the company for violation of any law.
For foreign companies operating in the banking and financial sector, requires a license by the Monetary Authority of Singapore (MAS) to operate legally in the country.
Since foreign companies can register their own business, which are legally required to hire a professional company of the registration on their behalf.
Rikvin is the leading Singapore Company Incorporation and work pass specialists. It has assist thousand of foreign entrepreneurs Setup up a Singapore Representative Office and secure their employees respected Singapore Employment Pass.
Our office is located at Raffles Place, in the heart of the Singapore business district. ("CBD")
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