How Do I Set Up a Branch in Singapore?
Setting up a branch in Singapore is a strategic way for foreign companies to expand into one of the world’s most competitive and business-friendly markets. A branch office allows your overseas company to operate in Singapore while remaining legally part of the parent entity. Here’s what you need to know about the process.
1. Understand the Nature of a Branch Office
A Singapore branch is not a separate legal entity. The foreign parent company is the one which will be held accountable for the branch's debts and obligations. Branches cannot change the business types of the parent company, but they have to abide by Singapore's regulations and submit their reports on time.
2. Appoint at Least One Local Agent
You are required to appoint at least one authorised representative who resides in Singapore (a citizen, permanent resident, or Employment Pass holder). Many companies choose to appoint two for better compliance continuity.
3. Reserve and Register the Branch Name
Your branch will typically use the same name as the parent company. The name must be approved by the Accounting and Corporate Regulatory Authority (ACRA). After approval, you can proceed with filing your registration documents.
4. Prepare Required Documents
ACRA requires:
- A certified copy of the parent company’s incorporation documents
- Details of directors and officers
- A registered local office address in Singapore
- Declared SSIC business activity codes
You only need to declare your branch’s business activities through the appropriate SSIC codes during registration; no separate memorandum is required.
Most of these documents must be notarised and apostilled or legalised, depending on the laws of the parent company’s home country.
5. Open a Corporate Bank Account
Most foreign companies open a Singapore bank account to facilitate local transactions. Banks may require in-person verification for directors or authorized signatories.
6. Meet Ongoing Compliance
Singapore branches must maintain proper accounting records and file annual returns, which typically include the branch accounts together with the parent company’s audited financial statements in accordance with ACRA requirements.
Setting up a branch in Singapore is straightforward but requires careful attention to regulatory details. With expert assistance from corporate service providers such as One IBC Singapore, you can streamline the registration process and ensure full compliance while expanding into Singapore’s thriving business environment.
