Registering a Subsidiary Company or Branch

Roger Pay
May 2, 2021
4 min read

Updated: Mar 17

Registering a Subsidiary Company or Branch

Foreign companies can set up operations in Singapore in two different ways:

Incorporating a Subsidiary Company
Registering a branch of a Foreign Company

Incorporating a Subsidiary Company

A foreign company can choose to be incorporated as a subsidiary (i.e., local company). The shares of the subsidiary can be held by the foreign company as the sole shareholder. As a local company, the subsidiary will have to comply with the statutory and disclosure requirements of the Companies Act.

Registering as a Branch of a Foreign Company

A foreign company may do business by choosing to set up a branch in Singapore. Unlike a subsidiary, the branch of a foreign company must have a locally resident authorised representative. The foreign branch must also comply with the statutory and disclosure requirements of the Companies Act.

A branch is not a separate legal entity but is an extension of its head office, and as such may be utilized to leverage the brand name and finances of the head office to, amongst others, secure licences.

From a tax perspective, the residence of a branch generally follows that of its head office, i.e., a branch is prima facie not regarded as resident in Singapore.

For Singapore tax purposes, assessable income of a branch is generally taxed at the same rate as that of an incorporated subsidiary.

However, as most Singapore branches are regarded as non-residents of Singapore for tax purposes, the Singapore branch will not be able to avail itself of any tax benefits accorded under the Singapore tax treaties, qualify for any unilateral tax relief provisions, nor foreign income tax exemption.

Foreign corporations may operate through branches, although most foreign investors prefer to set up private limited companies, since the tax residence status is simpler and provides for the ability to qualify for incentives, depending on the industry, location, and office type.

How Bestar Singapore Can Help

Registering a Subsidiary Company or Branch

Establishing a physical presence in one of the world’s most business-friendly hubs requires a strategic choice between two primary structures: a Subsidiary Company or a Branch Office. For foreign corporations, this decision impacts everything from tax liability to brand perception and operational scalability.

As a leading corporate service provider, Bestar Singapore streamlines this complex process, ensuring your expansion is compliant, cost-effective, and optimized for growth.

Subsidiary vs. Branch: Which is Right for You?

Understanding the legal and tax implications is the first step in your Singapore expansion journey.

1. Subsidiary Company (Private Limited)

A subsidiary is a separate legal entity from its parent company, even if the parent owns 100% of the shares.

Liability: The parent company’s assets are protected; liability is limited to the share capital invested in the Singapore entity.
Tax Benefits: As a Singapore tax resident, a subsidiary is eligible for local tax incentives, including the Start-Up Tax Exemption (SUTE) scheme and partial tax exemptions.
Market Perception: It is viewed as a local entity, which often builds greater trust with Singaporean banks, clients, and government bodies.

2. Branch Office

A branch is an extension of the foreign parent company and is not a separate legal entity.

Liability: The parent company bears full and unlimited liability for all debts and legal obligations of the Singapore branch.
Taxation: Generally treated as a non-resident entity, meaning it may not qualify for local tax exemptions or certain double-taxation treaty benefits.
Compliance: You must file both the branch’s and the parent company’s audited financial statements with the Accounting and Corporate Regulatory Authority (ACRA).

Registration Requirements (2026 Update)

Feature	Subsidiary Company	Branch Office
Entity Name	Can be different from Parent	Must be identical to Parent
Resident Director/Rep	At least 1 Local Resident Director	At least 1 Authorized Representative
Shareholders	1–50 (can be 100% foreign-owned)	Owned by Parent Company
Registered Address	Physical SGP address required	Physical SGP address required
Paid-up Capital	Minimum S$1	Not applicable

How Bestar Singapore Simplifies Your Registration

Navigating ACRA’s BizFile+ portal and ensuring compliance with the Singapore Companies Act requires local expertise. Bestar provides an end-to-end "Agentic-First" approach to corporate services:

Strategic Advisory: We analyze your business goals to recommend the most tax-efficient structure.
Name Reservation & Filing: We handle the reservation of your entity name and the submission of all certified documents to ACRA.
Nominee Services: If you lack a local resident director or representative, Bestar provides professional Nominee Director and Authorized Representative services to satisfy statutory requirements.
Ongoing Compliance: Beyond registration, we manage your Annual Returns, XBRL filing, and Corporate Tax submissions with IRAS.
Digital Integration: We help you set up AI-driven bookkeeping and payroll workflows to ensure your new office is "AI-ready" from day one.

Accelerate Your Global Expansion

Don't let regulatory hurdles slow down your entry into the Asian market. With over 30 years of industry experience, Bestar Singapore provides the stability and local insight your firm needs.