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Branch Office (Branch)

Company formation in Singapore

Best Answer

The Branch is best suited for: Foreign companies that want a presence in Singapore without incorporating a separate entity, Businesses testing the Singapore market before committing to a full subsidiary, Companies that need to retain a unified global structure for regulatory or contractual reasons. A branch office is taxed at the standard corporate rate of 17% on income derived from Singapore. Unlike a Pte Ltd, a branch is not eligible for the partial tax exemption for new startups. However, the branch may benefit from Singapore's double tax treaty network if the parent company is resident in a treaty country. Profits repatriated to the parent company are not subject to withholding tax in Singapore.

Who this is for
  • Foreign companies that want a presence in Singapore without incorporating a separate entity
  • Businesses testing the Singapore market before committing to a full subsidiary
  • Companies that need to retain a unified global structure for regulatory or contractual reasons

Key Facts

Min. Shareholders0
Max. ShareholdersUnlimited
Min. Directors0
Minimum CapitalNone (funded by parent)
LiabilityUnlimited — the parent company bears full liability
Setup Timeline2–4 weeks
Annual CostSGD 3,000–8,000

Step-by-Step Formation Process

1

Appoint an authorised representative

Designate at least one locally resident agent who is authorised to accept legal notices on behalf of the foreign parent company. This person must be a Singapore citizen, permanent resident, or holder of a valid work pass.

2

Prepare parent company documents

Gather a certified true copy of the parent company's certificate of incorporation, constitution or charter, and a board resolution authorising the registration of the branch in Singapore. All foreign-language documents must be accompanied by certified English translations.

3

Register with ACRA

File the branch registration via BizFile+ with the parent company's particulars, the authorised representative's details, the Singapore registered office address, and the SGD 300 registration fee.

4

Ongoing compliance

File annual returns with ACRA, lodge the audited accounts of both the branch and the parent company, and maintain a registered office in Singapore. The branch must also register for GST if its taxable turnover exceeds SGD 1 million.

Required Documents

  • Certified copy of the parent company's certificate of incorporation
  • Certified copy of the parent company's constitution or charter
  • Board resolution authorising the Singapore branch registration
  • Particulars of directors of the parent company
  • Passport and proof of address of the authorised representative in Singapore
  • Registered office address in Singapore
  • Certified English translations of all foreign-language documents

Cost Overview

Cost Breakdown (USD)
Annual Cost
SGD 3,000–8,000
Country Formation Range
SGD 800–3,000

Tax Treatment

A branch office is taxed at the standard corporate rate of 17% on income derived from Singapore. Unlike a Pte Ltd, a branch is not eligible for the partial tax exemption for new startups. However, the branch may benefit from Singapore's double tax treaty network if the parent company is resident in a treaty country. Profits repatriated to the parent company are not subject to withholding tax in Singapore.

Pros & Cons

Advantages
  • Not a separate legal entity — allows seamless integration with the parent company's global operations
  • Simpler to set up than a subsidiary for companies that already operate internationally
  • Can repatriate profits directly to the parent without dividend withholding tax
  • Useful for fulfilling specific contracts or government tenders that require a local presence
Disadvantages
  • The parent company has unlimited liability for all obligations of the branch
  • Must file the parent company's audited accounts with ACRA — this can be burdensome and exposes financial information publicly
  • Not eligible for Singapore's startup tax exemption scheme
  • Perceived as less committed to the local market than a Pte Ltd, which can affect relationships with partners and clients
  • Higher annual compliance costs due to dual filing requirements

Other Structures in Singapore

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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.