One of the most ideal business structures in Singapore is a representative office
. It is a short term business setup which provides more means for a company to evaluate business opportunities in Singapore's economy. The short term setup usually falls up to three years. However, a representative office is not authorized to proceed with revenue-generating activities including entering into contracts and opening a Letter of Credit.
Here are the common things to bear in mind before registering a Singapore Representative Office:
The name of the representative office should be similar to that of the parent company.
The parent company must have full ownership on the representative office.
A representative office must appoint one representative to run the operation. Representative can either a Singapore resident or a foreigner staff member.
A registered address is also one vital requirement for registration. It should be an existing physical address and not a PO Box. A residential address can be reconsidered depending on the type of business you prefer.
It would be advisable to seek the service of a professional business registration firm in Singapore to help you process the registration immediately. The process for approval in the International Enterprise Singapore would usually take about 5 business working days. If the application is approved, a notification email will be received. The permit is good for one year and should be renewed seven days before the expiration date. A representation office must upgrade to a Branch Office or a Subsidiary Company after a period of three years. After registration, another important thing to process is opening a bank account with any local or international banks based in Singapore.
A mandatory registration for Singapore Central Provident or CPF, a pension fund scheme which requires employers and employees to contribute a percentage of their salary. The maximum CPF contribution rate for employer and employee is 14.5% and 20% respectively and can be lower depending on certain factors such as employee age, permanent resident status, etc.
Registered office hours should be identified and a minimum of three hours per day should be made available for public.
Registered number should be displayed on all letterheads, invoices, billings or other documents used for official business communications.
A custom registration is required for those who wish to import and export products.