subject: Asiabiz Services Explains How To Setup A Singapore Representative Office [print this page] Asiabiz Services Explains How To Setup A Singapore Representative Office
A foreign company interested in establishing operations in Singapore may explore business potential in Singapore by incorporating a Representative Office. It is an excellent option for assessing business opportunities prior to making any long term or large-scale business commitment. A Representative Office is prohibited from engaging in commercial revenue-generating activities.
Representative Offices are required to be registered with International Enterprise Singapore (IE Singapore) the corresponding office registration authority.
A registered Singapore Representative Office has a valid term for a period of one year with mandatory annual renewal for a maximum period of two years. After the lapse of the two-year period, the Representative Office is required to convert into either a Subsidiary or Branch Office. The following are some facts about Singapore Representative Office;
Considered an extension of the foreign parent company
Not a separate legal identity
Foreign parent company is liable for all acts, debts and liabilities of its Representative Office.
Prohibited from engaging in commercial revenue-generating activities
No filing requirements
Prohibited from negotiating any trading instruments or leasing of warehouses
Must appoint and relocate a chief
representative staff member from head office to the Singapore Representative Office to supervise its activities
Allowed to appoint limited number of staff, both local and foreign, to support the limited activities of the Representative Office
Must notify authorities in advance of any changes in representatives, address or registered activities
In case of a name change by the parent company, a copy of the parent company's Certificate of Change in Name must accompany the notification
All communication materials must clearly indicate that is a Representative Office
The income of the staff including the Chief Representative of the Representative Office is subject to personal income tax
Representative Office can obtain a Central Registration (CR) Number from Singapore Customs to import and export product samples
CR Number not allowed to be used for any trading activities
Representative Office must be registered if parent company becomes dormant
A certified copy of the Certificate of Incorporation, or registration of foreign company
A copy of the parent company's latest annual report
A copy of audited financial statements
All foreign companies are required to engage a professional service agent to assist in the registration and incorporation of their Representative Offices. IE Singapore takes approximately five working days to process the registration. This process can be delayed if IE Singapore requires more information from the company.
