|
Legal Type
|
Not a separate legal entity but an extension of the parent company
|
Has no legal status but just a temporary administrative arrangement. Requirements: Parent Company must have sales turnover of more than US$ 250,000/- with years of establishment of at least 3 years.
|
Separate legal entity distinct from its parent company
|
|
Liabilities
|
Liabilities extend to parent company
|
Liabilities extend to parent company
|
Liabilities limited to subsidiary
|
|
Entity Name
|
Must be the same as the parent company
|
Must be the same as parent company plus must include 'Representative Office'
|
Can be the same or different from parent company
|
|
Allowed Activities
|
Must be the same as the parent company
|
Can only conduct market research or coordinating activities
|
Can be the same or different from parent company
|
|
Validity Period
|
Registered forever until closed
|
Has to be renewed every year with a 3 year maximum
|
Registered forever until closed
|
|
Taxation
|
Taxed as non-resident entity, local tax benefits not available
|
N/A as Rep Office cannot generate income
|
Taxed as Singapore resident entity, local tax benefits available
|
|
Annual Filing
|
Must file branch office as well as parent company's accounts
|
N/A
|
Must file accounts of the Singapore subsidiary
|
|
Bank Account
|
Can open bank account in Singapore
|
Can open bank account in Singapore to run the cost center operations; must be funded by the parent company
|
Can open bank account in Singapore
|
|
Staff Hiring
|
No restrictions on hiring local or foreign staff
|
Chief representative must be a staff member from the parent company. Can have limited staff only.
|
No restrictions on hiring local or foreign staff
|
|
Appointment of Officers
|
Must appoint at least one locally residing authorised representative
|
Must appoint a Chief Representative who will relocate from headquarters
|
Must appoint at least one local resident director
|
