The short answer
- A representative office can research the market but cannot earn revenue. It needs a parent at least three years old with turnover of US$250,000 or more.
- A branch is the parent itself, registered in Singapore. It can trade, but the parent carries every liability and must file its own accounts here too.
- A subsidiary is a separate Singapore company with limited liability. It is the usual choice once you sign customers, hire, or want treaty benefits.
- Most groups start where they will end up. Converting later costs a second set-up and, for a branch, a transfer of the business.
The short answer
Use a representative office only to test a market for a short period. Use a branch when the parent wants to trade in its own name and accepts unlimited exposure. Use a subsidiary for almost everything else: it is the vehicle banks, customers, investors and IRAS understand best.
| Representative office | Branch | Subsidiary | |
|---|---|---|---|
| Registered with | Enterprise Singapore (MAS for finance, Ministry of Law for law firms) | ACRA, as a foreign company | ACRA, as a private limited company |
| Can earn revenue | No: market research, contacts, enquiries and trade shows only | Yes | Yes |
| Separate legal entity | No | No: the branch is the parent | Yes |
| Parent's liability | Full | Full: branch debts are the parent's debts | Limited to its investment |
| Local person required | A chief representative | At least one authorised representative ordinarily resident in Singapore | At least one director ordinarily resident in Singapore, and a secretary |
| Duration | Up to three years in total | Unlimited | Unlimited |
| Annual filings | Compliance declarations | Parent's own financial statements plus audited branch accounts | Its own financial statements; audit unless it is a small company |
| Start-up tax exemption | Not applicable | No: it needs a Singapore-incorporated company | Possible, if the shareholding conditions are met |
| Treaty benefits from Singapore | No | Usually not: control sits with the parent abroad | Yes, if it is managed and controlled in Singapore |
Representative office: the rules in 2026
- Open to foreign companies in manufacturing, international trading, wholesale and related sectors. Banks and insurers go to MAS instead.
- The parent must have been established for at least three years, with turnover of at least US$250,000. Group consolidated accounts do not count.
- No more than four staff.
- Applications before 1 April 2027 get one year, renewable for two more; from 1 April 2027 the three years are granted upfront, with yearly compliance declarations. There is no extension beyond three years.
- It must not generate revenue directly or indirectly for the parent. Breaching that can lead to de-registration.
Branch: what catches groups out
- Two sets of accounts. Every year the branch files the parent's own financial statements plus audited accounts of the Singapore operations. Relief from the branch audit is possible on application, but there is no waiver of filing the parent's statements.
- Unlimited exposure. A claim against the branch is a claim against the parent and all its assets.
- Tax. The branch pays 17% on profits from Singapore operations, but cannot use the start-up exemption and usually cannot obtain a Singapore certificate of residence.
- Moving later. Turning a branch into a subsidiary means incorporating a new company and transferring the business, contracts, staff and bank accounts.
Subsidiary: the default for most groups
A subsidiary ring-fences risk, can hold licences and contracts in its own name, and is what Singapore banks and investors expect. It can claim treaty benefits when it is genuinely managed in Singapore. See POEM and substance and the certificate of residence. A wholly owned subsidiary normally uses the partial exemption, not the start-up exemption.
If the parent is in India
A Singapore subsidiary is an overseas direct investment, with the filings described in ODI step by step. A branch or office abroad follows separate rules under India's foreign exchange regulations, so confirm the route with your authorised dealer bank before money moves. A branch's profits are also part of the Indian company's own income, with credit for Singapore tax.
Questions people ask
Can a representative office sign contracts or invoice customers?
No. It may research the market, build contacts, handle enquiries and attend trade shows, but must not generate revenue for the parent.
How long can a representative office run?
Up to three years in total. After that the parent must register a branch or a subsidiary, or close the office.
Does a branch need its own audit?
Its Singapore accounts must be audited unless ACRA grants relief, and the parent's own financial statements must be filed every year as well.
Which is best for treaty benefits?
A subsidiary that is genuinely managed and controlled in Singapore. A branch usually cannot obtain a Singapore certificate of residence.
Not sure which vehicle fits?
Tell us what you plan to do in Singapore in the next two years. We reply within one working day with a recommendation and a fixed fee.
Sources
- GoBusiness: Representative office registration with Enterprise Singapore
- Allen & Gledhill: ACRA practice on annual filing for foreign companies (secondary source)
- Piloto Asia: Setting up a branch office in Singapore (secondary source)
- ACRA: Submitting your application to set up a local company
- IRAS: Corporate income tax rates, exemptions and rebates
- RBI: Foreign Exchange Management (Overseas Investment) Rules, 2022
General information only, last reviewed 1 November 2026. It is not advice for your situation. Laws and practice change, and the official sources linked above prevail. Speak to a qualified adviser before you act. Northwise does not file with Indian authorities; India-side work is done by independent licensed firms.
