Singapore Representative Office
A Representative Office provides a foreign company interested in establishing operation in Singapore an avenue to assess business opportunities in Singapore market. It is also ideal for a foreign company that is interested in promoting its brand and to work with its local agents and distributors. It is a short-term setup (for up to three years), and it is not permitted to engage in commercial revenue-generating activities such as concluding contracts and opening of Letter of Credit.
Features
- It is an administrative extension of a foreign company
- Its must have the same name as the parent company.
- 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.
- It also need not comply with the filing requirements since it is not an incorporated business entity.
- It is curtailed from negotiating any trading instruments or leasing of warehouses. It is, however, allowed to lease office space.
- It is allowed to appoint limited number of staff, both local and foreign, to support its restricted administrative activities.
- It can obtain a central registration number from the Singapore Customs to import and export product samples.
- It is a short-term setup for up to 3 years with mandatory annual renewal.
Advantages
- It allows foreign companies 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.
- It serves as a good platform to work with local agents and distributors.
Disadvantages
- It cannot 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.
- It does not have separate legal identity, and therefore the foreign parent company is responsible for all its debts, losses and liabilities.
Registration of a Singapore Representative Office
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.
Approval and Renewal Information
International Enterprise Singapore takes about 5 business working days to approve each application. Once approved, it will send a Letter of Approval via email. The registration is valid for one year and subject to an annual renewal. International Enterprise Singapore sends out a renewal notice two months prior to the expiry of the registration. It is mandatory for the renewal to be completed 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.
[Related Topics: Singapore Subsidiary Office | Singapore Branch Office | Personal Income Tax]