Branch structure

Branch structure

The branch structure allows companies of a certain size to grow rapidly and effectively to other international or regional areas.

This model means that a branch of the main company is established in Singapore and is legally the same as the main company.

Characteristics:

• A branch is an extension of the main company
• The qualifications and project cases of the main company can be shared with the branch office
• The main company bears unlimited liability for the branch office
• The company is not an independent legal entity.
• The main company has complete control over the branch office.
• Branch offices shall be subject to mandatory audits and shall submit their financial statements to the Government of Singapore every year.
• Branch reports can be consolidated into the main company
• Do not enjoy Singapore’s tax exemptions
• Shareholder dividends are not taxed twice

For:

• Companies interested in expanding their businesses overseas
• Engineering companies bidding overseas (project cases and qualifications required by the main company)
• Overseas investments, mergers and acquisitions
• Overseas Operations and Maintenance Center for Large Enterprises

Please consult FOZL for more information.