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 Singapores 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:
1.The name of the representative office should be similar to that of the parent company.
2.The parent company must have full ownership on the representative office.
3.A representative office must appoint one representative to run the operation. Representative can either a Singapore resident or a foreigner staff member.
4.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.
In addition, here are the common things to consider after registering a Singapore Representative Office:
1.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.
2.Registered office hours should be identified and a minimum of three hours per day should be made available for public.
3.Registered number should be displayed on all letterheads, invoices, billings or other documents used for official business communications.
4.A custom registration is required for those who wish to import and export products.