A subsidiary company is usually the preferred option over a branch office for the following reasons:
- A branch is an extension of its head office and is not a separate entity.
- A branch is required to appoint at least 2 agents who are ordinarily resident in Singapore.
- A branch is treated as a non-resident entity and therefore is not eligible for tax exemptions or incentives that a subsidiary company (which is considered a resident entity) may be entitled to.
- A branch is required to file its head office accounts as well as its own audited accounts.