Branch Office

Q: What are the key differences between a Branch Office and a Subsidiary?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;A subsidiary is a separate legal entity with limited liability, while a branch office is not and carries the full liability of its parent company. Subsidiaries are generally preferred for long-term operations.&lt;/span&gt;&lt;/p&gt;

Q: Is a Branch Office considered a tax resident?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;The tax treatment of a branch office can be complex. Generally, the profits derived from its operations within the country are subject to local corporate tax.&lt;/span&gt;&lt;/p&gt;

Q: Can a Branch Office hire local employees?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;Yes, a Branch Office can hire local staff, but it must comply with all local labor laws and regulations, including CPF contributions in Singapore.&lt;/span&gt;&lt;/p&gt;

Last Updated 25 Jul 2025

A Branch Office is an extension of a foreign company that is registered to operate in a different jurisdiction. Unlike a subsidiary, a branch office is not a separate legal entity from its foreign parent company.

Why is a Branch Office Important?

A Branch Office is a common way for foreign companies to test a new market or conduct specific business activities without creating a whole new company. However, because it is not a separate entity, the foreign parent company is fully liable for all the debts and obligations of its branch office.

Frequently Asked Questions

What are the key differences between a Branch Office and a Subsidiary?

A subsidiary is a separate legal entity with limited liability, while a branch office is not and carries the full liability of its parent company. Subsidiaries are generally preferred for long-term operations.

Is a Branch Office considered a tax resident?

The tax treatment of a branch office can be complex. Generally, the profits derived from its operations within the country are subject to local corporate tax.

Can a Branch Office hire local employees?

Yes, a Branch Office can hire local staff, but it must comply with all local labor laws and regulations, including CPF contributions in Singapore.