Asiabiz Talks about the Relationship between Singapore Branch Office Vs Subsidiary Office 

Asiabiz conceived a page on its website a relationship on the branch office and subsidiary office in registration, features, and benefits.

by Ashley Varghese Monday, April 25, 2011
As part of its expert specialism, Asiabiz Services provides company incorporation services in Singapore for foreign investors and businesses. Two business organisations that foreign companies can select to register in Singapore are branch office and subsidiary office.

Asiabiz conceived a page on its website a relationship on the branch office and subsidiary office in registration, features, and benefits.

“One distinction that stands out between these two business organisations is the lawful personality,” says Asiabiz’s business consultant, “only the subsidiary office is cloaked with a legal character as it pursues a private limited structure.”

A subsidiary office supposes accountability on its operations. Its shareholders and directors are not financially liable afar from what their paid shares in the company in case of failure.

“The shareholders and directors will not be conveyed to any lawful proceedings in relations to their business. Instead, it is the company that is entitled as the lawful party in a lawful proceeding brought by the court,” Asiabiz adjoins.

A branch office on the other hand, does not have its own legal reality. Therefore, its parent company is accountable for the operations sustained by the branch office.

Throughout registration, the subsidiary office pursues the process and obligations of a private limited company.

Asiabiz continues: “A subsidiary office desires to have a resident director, at least one shareholder, and a secretary. There should be a minimum paid-up capital worth S$1.”

Meantime, in a branch office, the parent company will conclude the activities that its branch office in Singapore may embark on.

“A branch office does not have its own Memorandum and Articles of Agreement. Its mother company shall use its own Memorandum to name the branch office’s local directors, their respective responsibilities, and business powers,” Asiabiz’s business consultant chimes.

A subsidiary office issues its own Memorandum and Articles of Agreement calling its directors, shareholders, secretary, share capital, and business address.

Asiabiz extends to clarify: “A branch office has two appointees renowned as agents who will support in the management of the branch. The resident director directs a subsidiary office in its functions.”

By acquiring work visas such as an Employment pass, foreign nationals can be nominated as the representatives in a branch office and the resident director in a subsidiary office.

Asiabiz boasts nominee services such as a nominee office, and a nominee shareholder and a nominee director for conformity with statutory needs.

When it comes to benefits, Asiabiz quips: “A subsidiary relishes tax exemption for three years following its incorporation in Singapore. A branch office, however, may furthermore relish tax inducements under the industry-specific tax incentive scheme.”

Singapore is International Finance Corporation’s easiest location to do business for 5successive years. Asiabiz is a prominent business service provider proffering services such as work visa processing, assistance in fulfilling with post-incorporation requirements, accounting, and IT services.

About the Publisher:

Asiabizservices offers one-stop business solutions to companies, particularly, those that are managed and owned by foreign investors. Since its inception, Asiabizservices has successfully helped foreign entrepreneurs form a Singapore company. Among its specializations are company setup, corporate services, accounting services, nominee services, company registration, whether as a sole proprietorship, private limited, limited liability partnership; offshore company formation, incorporation of foreign companies either as a branch or subsidiary office, accounting services including payroll preparation and more

Asiabizservices is the leading provider of Singapore Company Incorporation services and has successfully helped thousands of both local and foreign entrepreneurs incorporate a Singapore Company. It also provides chartered secretarial services.

For more information visit:

AsiaBizServices PTE LTD
Address: 120 Telok Ayer Street Singapore 068589
Phone: +6563034614

0    submitted by Ashley Varghese
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