Company registration is a legal requirement that each investor must comply with. Singapore is a prime state due to its strategic location in Asia, international standards, ports and other favorable factors that lure one to open a company here. In fact, the lucrative opportunity Singapore offers has seen many foreign companies make an entry into the country. After deciding to set up a business here, it is thus crucial to understand the various company registration options in Singapore. Below are the popular options which are available with Visa Express company.
Subsidiary company
Singapore offers this opportunity where one can open an office or branch with a subsidiary mother company being its main shareholder. The beauty about this option is that this country allows full foreign ownership of firms. Therefore, any foreign company can have full shareholding rights to a local company.
Attributes of a subsidiary company
- A subsidiary company owner’s assets are protected, as the company has a liability limited to its capital.
- It is treated as a separate entity to the parent company.
- Whether the parent company withdraws, dies or ceases to operate, a subsidiary will not cease to operate based on this.
Subsidiary companies get to enjoy tax benefits set by the Singapore government.
Private limited company
Companies and businesses incorporated under this option in Singapore have private shares that are not open to the public. Most of the companies prefer to register under this option, and in fact, the government encourages foreign investors register their companies under this category.
Attributes of private limited companies
- All companies under this category have their names ending with Pte Ltd.
- Its existence is separate from the shareholders making it easier for operations like contracting and even assets acquisition.
- Investors find it simpler to deal with Pte Ltd companies as they control their own assets.
Branch office
Just as the name sounds, those companies working under this incorporation work as part of their parent companies whenever they are. They are not independent, as the head office plays the major decision maker. So, what are some of the attributes of a such an office?
- The head office is responsible for any omission or commission of acts performed by the branch in Singapore.
- The head office finances the branch office and audits its operations.
- All legal liabilities are regulated by the head office which means that prosecution of the Singapore branch may lead to legal action against the mother company.
Representative office
These are the temporary options where the offices run without a legal base. In most cases, these are businesses which want to try the Singapore market, and the government gives it a three years contract to operate. It is worth also to highlight some of its attributes;
- They do not enter into any contract while representing the mother companies.
- It operates for feasibility and research studies on behalf of the overseas parent company.
- Interestingly, the company’s lead must come from outside the country, but the other staff can come from within.
Conclusion
The above are popular options to register a company in Singapore. Therefore, consider using the appropriate one when opening a company here.
