Registering a Branch in Singapore Master These Key Details to Kickstart Your Entrepreneurial Journey!

Registering a Branch in Singapore Key Details to Help You Get Started Quickly

In recent years, with the evolving global business environment and the continuous growth of the Southeast Asian market, an increasing number of international companies have chosen to establish a branch in Singapore to expand their presence in Asia. As one of the world's most competitive economies, Singapore has become a top destination for foreign investment due to its political stability, robust legal system, low tax rates, and efficient business environment.

According to data released by Enterprise Singapore in 2025, despite global economic uncertainties, foreign direct investment FDI in Singapore continues to grow strongly, particularly in sectors such as technology, finance, and green energy. This trend underscores Singapore’s role not only as an ideal location for regional headquarters but also as a strategic gateway for companies pursuing international expansion.

For companies considering setting up a branch in Singapore, understanding the registration process and key requirements is essential. This article will walk you through the critical aspects of establishing a branch, including registration criteria, legal structures, required documentation, tax policies, and common considerations.

1. Understand the Difference Between a Branch and a Subsidiary

Before proceeding with registration, it's crucial to understand the distinction between a branch and a subsidiary. A branch office is an extension of the parent company and does not have independent legal status - the parent company assumes all legal liabilities. In contrast, a subsidiary company is a separate legal entity, with the parent company typically holding its shares.

For companies aiming for a quick market entry and tighter cost control, setting up a branch is often more straightforward. However, note that the financial statements of the branch must be consolidated with those of the parent company, which may affect the confidentiality of the parent’s business information.

2. Registration Requirements

According to the Accounting and Corporate Regulatory Authority ACRA, the following conditions must be met to establish a branch in Singapore

1. Legally Registered Parent Company The parent company must be legally established in its home country and hold a valid business license.

2. Appointment of a Local Representative The branch must appoint at least one resident agent in Singapore, who is usually a Singapore citizen, permanent resident, or a professional holding an Employment Pass.

3. Submission of Parent Company Documents Required documents include the parent company’s certificate of incorporation, articles of association, board resolutions, and audited financial statements.

4. Registered Office Address The branch must have a valid physical address in Singapore - a P.O. Box is not acceptable.

3. Overview of the Registration Process

The process for registering a branch in Singapore is generally efficient and transparent, often completed within 1-2 weeks. The main steps are

1. Company Name Approval Submit a company name application through ACRA’s BizFile+ system to ensure the name is available.

2. Submission of Documents Prepare and submit the required documents, including a certified copy of the parent company’s business license, articles of association, board resolutions, and information about the local representative.

3. Receipt of Registration Certificate Upon approval, ACRA will issue a certificate of registration.

4. Opening a Corporate Bank Account Use the registration documents to open a corporate bank account in Singapore.

5. Application for Industry Licenses If the business operates in a regulated sector e.g., food services, construction, or finance, apply for relevant licenses from the appropriate authorities.

4. Tax Policies and Incentives

Singapore’s tax system is known for its simplicity and efficiency. Branch profits are subject to a corporate income tax rate of 17%, but there is no capital gains tax or Goods and Services Tax GST on profits. Singapore has signed double tax avoidance agreements DTAs with over 80 countries, helping companies optimize their international tax planning.

In recent years, Singapore has introduced various incentives to encourage investment in areas such as green technology, digital transformation, and RD. For example, the Global-Regional Headquarters GRH Incentive introduced in 2025 offers qualifying companies up to a 15% corporate income tax exemption for a period of five years.

5. Common Issues and Key Considerations

1. Financial Reporting Compliance Branch financial statements must be prepared in accordance with Singapore accounting standards and undergo annual audit, unless the parent company qualifies for an exemption.

2. Annual Filing Obligations The branch must submit an Annual Return to ACRA each year and keep its registration details up to date.

3. Local Compliance The branch must comply with local regulations, including labor laws and the Personal Data Protection Act PDPA, to avoid legal risks.

4. Exit Procedures If a company decides to close the branch, it must submit a dissolution request to ACRA and complete the necessary tax clearance procedures.

6. Leverage Professional Services for Efficiency

Given the complexity of legal, financial, and tax requirements involved in the registration process, it is advisable to engage local professional service providers such as accounting firms, law firms, or corporate registration agents. These experts can ensure compliance and help accelerate the setup process by facilitating access to local resources.

Conclusion

In today’s dynamic global economic landscape, Singapore stands out as a preferred destination for companies looking to expand across the Asia-Pacific region. With its strategic location, favorable policies, and strong business infrastructure, it provides an ideal environment for international enterprises.

By understanding the key steps and considerations in setting up a branch, businesses can confidently take their first step toward international growth. Whether you're a startup or an established multinational corporation, Singapore offers a supportive ecosystem and vast opportunities. Seizing this opportunity - starting with the registration of a branch - could be the key to unlocking the vast potential of the Asian market.