What is the difference between a Singapore subsidiary and a branch?

In general, a subsidiary is a Singapore company separate from the parent company, so its liability is limited to the subsidiary's assets, while a branch is an extension of the parent company, so the parent company bears the liability. The two forms may also be treated differently for tax purposes.

• Legal status: A subsidiary is a separate legal entity from the parent company, while a branch is regarded as the same legal entity as the parent company.
• Local representative: A subsidiary must have a locally resident director, and a branch must have one agent (Authorised Representative) who meets the local residency requirement.
• Tax: A subsidiary is generally required to file Singapore corporate income tax. A branch is not regarded as a Singapore tax resident if the parent company is not managed and controlled in Singapore, so the tax benefits available may differ.
• Ongoing obligations: Unlike a subsidiary, additional requirements apply to a branch.

Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.

The Lee Kim Alliance accounting team provides accounting and tax consultation.

As of November 2026, source: ACRA