Singapore is an attractive and viable option for foreign companies to open a branch. Its efficient infrastructure, strategic location and competitive corporate tax rates make it a choice location for many companies. There is also considerable support for foreign companies setting up branches in Singapore — support that is provided by professional Singapore accounting firms such as Regent Corp-Werkz. Understanding the landscape of the Singapore system and the needs of foreign companies helps decision-makers to decide on an appropriate cause of action for their foreign companies setting up a Singapore branch.

What are some basic requirements for a foreign company to set up a branch in Singapore?

The Companies Act (Chapter 50) in Singapore lays down a set of regulations for foreign companies opening branches in Singapore. A ‘branch’ is not a legal entity separate from the parent company; it is merely an extension of the parent company and does not have its own shares or its own board of directors. If a foreign company wishes to establish a place of business in Singapore, or carry out business activities in Singapore, it has to be registered with the Accounting and Corporate Regulatory Authority (ACRA) under the Companies Act.

One of the requirements of a foreign company setting up a branch in Singapore is the appointment of at least two local agents, who are individuals residing in Singapore who are authorized to receive service of process or notices on behalf of the foreign company. There are also a suite of additional administrative and accounting regulations necessary for a foreign company to operate a branch in Singapore.

What can decision-makers of foreign companies do if they are unsure about the regulations?

While many foreign business may be excited at the prospect of doing business in Singapore, it can be challenging and overwhelming to wade through piles of paperwork and lists of regulations. For companies who are not familiar with Singapore’s business and accounting practices, this can mean considerable time spent on becoming familiar with processes, statues, terminology and regulation. For this reason, seeking the expert advice of a Singapore accounting !rm is a more cost effective and efficient solution.

Regent Corp-Werkz takes over the functions of Company Secretary for the foreign company in Singapore, ensuring that all compliance matters, lodgements and filing deadlines, and administrative requirements are taken care of. We also provide strategic advice to foreign companies in Singapore, helping them to manage their operations and move towards revenue increments rather than just cost-savings. An added benefit of having an experienced Singapore accounting firm is that it helps foreign companies to avoid penalties and missed deadlines due to unfamiliarity with Singapore regulations — creating instead a clean, well-managed and compliant set of accounts and records on which to grow a business.