Ways to set up foreign businesses in Singapore

Set up a representative office

• Best for: Market research before you commit to setting up in Singapore.

• Legal status: Not a separate legal entity. A temporary setup.

• Liability: The parent company is fully responsible.

• Income: Cannot earn income, not subject to corporate tax.

• Compliance: Must comply with the relevant terms and conditions.

Register a subsidiary or local company

• Best for: Setting up a separate Singapore company for full commercial operations.

• Legal status: A separate Singapore company owned by the parent.

• Liability: Limited to the subsidiary's assets.

• Income and tax: Can earn income, subject to corporate tax.

• Compliance: After registration, must comply with the same requirements as a local company.

Registering as a foreign company branch

• Best for: Extending the parent company's operations to Singapore.

• Legal status: A direct extension of the parent company. Not separate.

• Liability: The parent company is fully responsible.

• Income and tax: Can earn income. Not a Singapore tax resident unless your foreign company is controlled and managed in Singapore.

• Compliance: After registration, must comply with the same requirements as a local company.

• Shares: Can be held by the foreign company as the only shareholder

Transfer registration (Re-domiciliation)

• Best for: Completely moving a company's legal home and registration to Singapore.

• Legal status: The foreign company becomes a Singapore company.

• Liability: Usually has a limited liability as a Singapore company.

• Income and tax: Can earn income, subject to corporate tax.

• Compliance: After re-domiciliation, must comply with the same requirements as a local company.

Tip: You can also re-domicile into Singapore as a variable capital company (VCC).