AsiaBiz Services

Setting Up a Branch Office

If you’re a foreign company who wishes to set up a Singapore Branch Office, you must appoint two persons who are Singapore residents as legal agents to provide administrative services and accept official notices from authorities. Under the Singapore Companies Act, the Singapore agents are responsible for all matters related to the Branch Office as well as be personally liable for all penalties imposed on the company for any breach of law or act.

A Singapore Branch Office does not enjoy tax incentives and exemptions available to Singapore-incorporated Private Limited Companies, and is considered a non-resident for tax purposes. The Branch Office is also required to submit annual accounting reports to ACRA as well as to its head office.

International banks and other financial institutions are required to obtain a licence for their Singapore Branch Office from the Monetary Authority of Singapore (MAS), and comply with the capital adequacy requirements regulated by the government body.

Features At-a-Glance

• Acts as an extension of the foreign company
• Not a separate legal identity
• The foreign parent company is liable for the acts, losses and debts of its branch office
• Required to appoint two staff members to act as agents, both local and foreign, to support the business administration of a branch office
• Considered non-resident for tax purposes
• Does not enjoy tax incentives or exemptions
• Must file audited accounts that includes parent company’s audited reports
• Company’s constitution and activities are directed by the foreign parent company’s Memorandum and Articles of Association

Setup Requirements for a Branch Office

• The Singapore Branch Office must bear the name of the parent company
• A different name may be approved by ACRA only under special circumstances
• Required to appoint two staff members to act as agents, both local and foreign, to support the business administration of a branch office
• Foreign directors or staff relocating to Singapore to be the agents must obtain Employment Passes (EP)
• Constitution of the company and its activities are directed by the foreign parent company’s Memorandum and Articles of Association
• Must have a registered office located in Singapore

Documents Required for Branch Office Registration

• A certified copy of the Certificate of Incorporation, or registration of foreign company
• A certified copy of its charter, statute, or Memorandum and Articles
• A list of its directors containing personal information such as the nationality, identification number, passport number, residential address, and etc
• If any, a memorandum executed by, or on behalf of the foreign company stating the powers of the local directors
• A memorandum of appointment or power of attorney stating the names and addresses of two or more residents in Singapore, who will act as authorised agents to perform services and accept any official notices served to the company
• Registered office details
• A statutory declaration by the agents of the company

How AsiaBiz can help you: All foreign companies are required to engage a professional service agent to assist in the registration and incorporation of their subsidiaries. AsiaBiz offers a quick, seamless and innovative package that begins with the registration of the business name followed by the company incorporation of your Singapore Branch Office.

The Ministry of Manpower grants work visa known as Employment Pass (EP) and each EP has with a validity of 1 or 2 years, that is renewable as long as the pass holder remains employed with the company. With an EP, you can travel in and out of Singapore with minimum hassle at the immigration. As an EP holder, you are also eligible to apply for permanent residency in Singapore.

You can apply for Singapore Employment Pass (EP) work visa, if:

• You are a foreign Entrepreneur, professional, managing director of Singapore companies who wish to relocate to Singapore to manage your company operations;
• You are a locally incorporated Singapore Company and need to hire foreign employees;
• You have an Employment offer from a prospective Singapore employer. In this case, you will need the company to apply the employment pass application on your behalf;

Employment Pass Eligibility Requirements

To be considered for an EP, you must have a minimum fixed monthly salary of S$3,000 and possess one or more of the following:

• Recognised educational diploma/degree
• Professional qualifications
• Specialist skills

Your application is evaluated by the Ministry of Manpower based on your merits. There are also other factors that may affect your application, such as:

• Salary
• Age
• Roles & responsibility
• Related work experience
• Company’s background
• Company’s paid up capital
• Current citizenship

A recognised educational qualification does not guarantee a successful EP application. You’ll also need to satisfy other criteria such as relevant work experience and/or professional skills. Similarly, an applicant without a recognised educational qualification may not necessarily be rejected for EP if he has other compensating factors.

Documents Required for Employment Pass (EP)

We will need the following documents for submission of Employment Pass visa application in Singapore:

• Resume or CV stating your educational and employment history
• Copies of educational certificates and past employment testimonials
• A copy of your passport details

Any documents that are not in English must be translated into English by an official translation service.

Pass Types

There are three categories of Employment Pass: P1, P2 and Q1 Pass. The P Pass is for foreigners seeking managerial, executive or specialist jobs. The EP does not fall under any quota system nor is there a monthly levy charge for EP.

• P1 Pass
  For applicants earning a fixed monthly salary of at least S$8,000.
• P2 Pass
  For applicants earning a fixed monthly salary of at least S$4,500 and he/she possesses recognised qualifications.
• Q1 Pass
  For applicants earning a fixed monthly salary of at least S$3,000 and if he/she possesses recognised qualifications.

Employment Pass Eligibility Summary Table

Procedure and Timeline

We can apply for your EP in 3 Simple Steps. We submit all Employment Pass applications electronically to Ministry of Manpower as the application process is shorter. This means you will also learn about the outcome of your application sooner.

STEP 1

We shall apply for authorisation code required to submit EP applications online for newly incorporated company. It takes 7-14 days for Ministry of Manpower to send the authorisation code.

STEP 2

Once we obtained the authorisation code, your EP application will be submitted online. The Ministry of Manpower takes between 1-15 days to issue an approval.

STEP 3

Once the application is approved, the Ministry of Manpower will issue an In-Principle Approval (IPA) letter via email. The IPA letter must be produced upon collection of the EP at the Work Pass Division at Ministry of Manpower. An IPA letter is valid for Six months from the date of notification of approval.

To collect your EP you’ll need to bring:

• A copy of the IPA letter
• Recently taken passport size photograph
• Original passport with the entry embarkation cards
• Medical exam report* (if the In-Principle Approval states that you require one)
• Any other documents that are requested in the approval letter

* You can get a medical examination done in your own country through an established clinic/hospital or in Singapore. Most clinics in Singapore can provide medical examination and report within a day.

Employment Pass Validity

• Validity period for first-time applicants is up to two years
• Validity for EP renewals is up to three years

Entry Visa into Singapore

If you are overseas and require an entry visa to Singapore, your IPA letter will include a single journey entry visa. Upon your arrival in Singapore, we will make an appointment with Ministry of Manpower on your behalf for finger printing. Your pass will be ready in 4 days after you complete the procedures.

You may collect the pass at Ministry of Manpower personally or authorise AsiaBiz to collect it on your behalf.

Rejection of Employment Pass Application

In the event that your Employment Pass application is rejected, AsiaBiz shall lodge an inquiry with the Ministry of Manpower. Based on the reasons provided by the Ministry, we will submit an appeal that will address the issues outlined by the government body and also include all additional documents, if any, that they request for. The Ministry of Manpower will take a minimum of three weeks or more to review your appeal.

Change of Employer

You must apply for a new pass whenever you change employers. There is no need to cancel the existing pass before applying for a new pass. The Ministry of Manpower evaluates each application for a new pass based the applicant’s qualifications, work experience, and employer credentials. Once the new pass is approved, you shall have to arrange for the old pass to be cancelled by your old employer issuing a letter requesting the same.

Renewal of Employment Pass

The Ministry of Manpower will send an Employment Pass Renewal Form to your employer two months before your EP expires. You should submit the renewal application at least 4 weeks prior to the expiration of your EP. Upon approval, your employer will receive a letter of notification and your new pass is ready for pick up at the Ministry of Manpower.

Permanent Residence Eligibility

EP holders of P1, P2 and Q status are eligible to apply to become a Permanent Resident through the Professional, Technical & Skilled Workers scheme. There is no designated waiting period but one of the documents required is 6 months of salary record, therefore you should plan your application at least 6 months ahead. However, it is advisable for Q1 pass holders to wait at least 2 years before applying for permanent residency.

Passes for Family Members

All Employment Pass holders can apply for Dependant Pass and/or Long-Term Visit Pass for their family members.