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