Singapore Representative Office: Basic Information

A Singapore Representative Office is another ideal business scheme which provides

interested foreign companies more chances to assess business opportunities in Singapore. This is the safer business scheme available prior to making long term or a fixed commitment. A Representative Office is not allowed to engage in commercial revenue-generating activities.

These are some of the significant features of a Singapore Representative Office:

1.It is an administrative extension of a foreign company

2.It must have the same name as the parent company.

3.It cannot engage in commercial revenue-generating activities, and therefore need not file for annual tax returns. However, income paid to the staff of the Representative Office including the Chief Representative is subject to personal income tax.

4.It also need not comply with the filing requirements since it is not an incorporated business entity.

5.It is curtailed from negotiating any trading instruments or leasing of warehouses. It is, however, allowed to lease office space.

6.It is allowed to appoint limited number of staff, both local and foreign, to support its restricted administrative activities.

7.It can obtain a central registration number from the Singapore Customs to import and export product samples.

8.It is a short-term setup for up to 3 years with mandatory annual renewal.

The advantages of establishing a Singapore representative office includes foreign companies being allowed to explore business opportunities in Singapore market prior to long term or big financial commitment, it provides an avenue to perform market research and promote brand identity and it serves as a good platform to work with local agents and distributors.

On the other hand, the disadvantages of this business scheme includes being restricted to engage in commercial revenue-generating activities, it is a short-term setup and must upgrade to a branch office or a subsidiary after 3 years or de-register and It does not have separate legal identity, and therefore the foreign parent company is responsible for all its debts, losses and liabilities.

In addition, it is required to hire the services of a business registration firm in Singapore to process the registration of any preferred business scheme. Rikvin is Singapore's leading specialist in registration of companies. We can set up your Representative Office within 5 working days provided you have all required documents in order.

Upon approval of the application of your Singapore Representative Office, Rikvin can also assist you in the application of Employment Pass for the Chief Representative who plans to relocate to Singapore to run the Representative Office operations.

by: Shayne Hughes

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