Other Options
A Representative Office provides a foreign company interested in establishing operation in Singapore an avenue to assess business opportunities in Singapore market prior to making any long term or large scale commitment. A Representative Office cannot engage in commercial revenue-generating activities.
If you choose to set up a Singapore Representative Office, you must take the following steps:
- Submit an application to register the Representative Office. Rikvin can assist you in the registration of your Representative Office.
- You can apply for an Employment Pass only after you have succeeded in registering the Representative Office. The Employment Pass application is for the Chief Representative who is the appointed staff member from the foreign company. The Employment Pass will allow the Chief Representative to relocate to Singapore to run the Representative Office.
- You will require a local registered office address. Rikvin can provide you with the use of our corporate registered address on a temporary or long term basis, if needed.
Taxation of Singapore Representative Office
A Representative Office 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 Singapore personal income tax.
Singapore Employment Pass
Foreign Entrepreneurs, Professionals, Managing Directors, Shareholders of Singapore companies who wish to relocate to Singapore to run their company operations may apply for an Employment Pass (EP). The Ministry of Manpower (MOM) allows the foreigner to apply for an Employment Pass after they have incorporated their Singapore Company to enable them to live and work in Singapore. The EP does not fall under any quota system nor is there a monthly levy charge for EP. Ministry of Manpower grants each EP with a validity of 1 or 2 years and it is renewable as long as the pass holder remains employed in the company. With an EP, you can travel in and out of Singapore with minimum hassle at the immigration checkpoint. It also gives you the benefit of applying for Permanent Residence status.Employment Pass Eligibility Requirements
To be considered for an Employment Pass, you must have a fixed monthly salary of at least S$2,500 and possess one or more of the following:- Generally, a recognized Diploma/Degree qualification from a reputable university is expected.
- Professional qualifications
- Specialist skills
- Work related experience
- Salary of applicant
- Age of applicant
- Roles & responsibility
- Repute of the company
- Company paid up capital
- Applicant current citizenship
Pass Types
There are three categories of Employment Pass: P1, P2 and Q1 Pass. The P Pass is for foreigners seeking managerial, executive or specialist jobs.- P1 Pass – for applicants earning a fixed monthly salary of more than S$7,000.
- P2 Pass – for applicants earning a fixed monthly salary of more than S$3,500 and up to S$7,000, and he/she possesses recognised qualifications.
- Q1 Pass – for applicants earning a fixed monthly salary of more than S$2,500 and he/she possesses recognised qualifications.
Employment Pass Eligibility Summary Table
| Pass Type | Factor One | Factor Two | Factor Three |
|---|---|---|---|
| P1 | Fixed monthly salary > S$7,000 |
Professional, Managerial, Executive, Specialist jobs | |
| P2 | Fixed monthly salary > S$3,500 |
Professional, Managerial, Executive, Specialist jobs | Recognised qualifications |
| Q1 | Fixed monthly salary > S$2,500 |
Recognised qualifications | In lieu of recognised qualifications, we may also consider compensatory factors such as skills and years of experience (we recommend a minimum of five years relevant work experience) |
Passes for Family Members
All Employment Pass holders can apply for Dependant Pass and/or Long-Term Visit Pass for their family members.Dependant Pass
Both P and Q1 Pass holders can apply for Dependant’s Pass for their:- Spouse
- Unmarried children under 21 years of age
Long-Term Visit Pass
P Pass holders can also apply for Long-Term Visit Pass for their:- Common law spouse
- Unmarried daughters above 21 years of age
- Handicapped children
- Step-children
- Parents/parents-in-law
A Snap Shot
| Pass Type Granted to Employment Pass Holder |
Dependant Pass | Long-Term Visit Pass |
|---|---|---|
| P | Yes | Yes |
| Q1 | Yes | No |
Procedure and Timeline
Rikvin submits all Employment Pass applications electronically to Ministry of Manpower as the application process is shorter, and subsequently you will also learn of your application outcome sooner. The process consists of the following steps:- Application to obtain authorization code to submit application online for newly incorporated company. Upon submission, it takes about 7-14 days for Ministry of Manpower to send the authorization code.
- Submission of application online. It takes Ministry of Manpower between 1-15 working days to process the application.
- Upon receiving the In-principle Approval notification, we will make arrangement for the collection of your EP.
Documents Required for Employment Pass
Rikvin will need the following documents for submission of Employment Pass visa application in Singapore:- Resume or CV stating your educational and employment history (download form)
- Copies of educational certificates and past employment testimonials
- A copy of the personal particulars page of your passport
Approval and Collection of Employment Pass
Once the application is approved, the Ministry of Manpower will issue an In-Principle Approval (IPA) letter via email. The IPA letter must be produced upon collection of the EP at the Work Pass Division at Ministry of Manpower. An IPA letter is valid for Six months from the date of notification of approval.
To collect your EP you will be required to present:- A copy of the IPA letter
- Recently taken passport size photograph
- Original passport with the entry embarkation cards
- Medical exam report* (if the In-Principle Approval states that you require one)
- Any other documents that are requested in the approval letter
* You can get a medical examination done in your own country through an established clinic/hospital or in Singapore. Most clinics in Singapore can provide medical examination and report within a day.
Entry Visa into Singapore
If you are overseas and require an entry visa to Singapore, your IPA letter will include a single journey entry visa. Upon your arrival in Singapore, we will make an appointment with Ministry of Manpower on your behalf for finger printing. Upon completing the procedures, your pass will be ready in 4 working days.
You may collect the pass at Ministry of Manpower personally or authorize Rikvin to collect it on your behalf.
Approval of Employment Pass Application
Employment Pass Validity
The validity period of an EP varies for:- First-time applicants – up to two years
- Employment Pass renewals – up to three years
Rejection of Employment Pass Application
In the event that your Employment Pass application is rejected by the MOM, Rikvin will investigate why your application has been rejected. Based on the reasons provided by MOM, we will submit an appeal that will address the issues outlined by MOM and also include additional documents per their request, if any. MOM will take a minimum of three weeks or more to review your appeal.
Change of Employer
Employment Pass holders must apply for a new pass whenever they change employers. There is no need to cancel the existing pass prior to application for a new pass. Ministry of Manpower evaluates each application for a new pass based the applicant’s qualifications, work experience, and employer credentials. A new pass will be issued once the old pass is cancelled.
Renewal of Employment Pass
Ministry of Manpower will mail an Employment Pass Renewal Form to your employer’s address two months before your EP expired. You should submit the renewal application at four weeks prior to the expiration of your EP. Once approved, your employer will receive a letter of notification and the new pass is ready for pick up at the Ministry of Manpower.
Permanent Residence Eligibility
EP pass holders of P1, P2 and Q status are eligible to apply for Permanent Residence through Professional, Technical & Skilled Workers scheme. There is no designated waiting period but since one of the documents required is 6 months of salary record, hence it is advisable to wait for at least six months prior to application. It is, however, advisable for Q1 pass holders wait for at least 2 years before applying for permanent residence.
Singapore Representative Office Registration Requirements
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.
Taxation of Singapore Representative Office
A Representative Office cannot engage in commercial revenue-generating activities, and therefore need not file for annual tax returns. However, income earned by the staff of the Representative Office including the Chief Representative is subject to Singapore personal income tax.
What you need to know before registration
Name: The Representative Office name must be the same as the parent company.
Shareholders: The parent company must own 100% of the Representative Office.
Chief Representative: Singapore Representative Office must have at least one representative who can be Singapore resident or foreigner staff member. Rikvin can assist you in the application of Employment Pass for the foreign staff member relocating to Singapore to run the Representative Office operations.
Registered Address: Every business registered in Singapore is required to have a registered office address. The registered address must be a physical address and cannot be a PO Box. Use of residential address is allowed for certain types of business.
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. The approval process by Ministry of Manpower of Singapore is approximately 3-5 weeks.
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.
Opening of a Corporate Bank Account
Once the Representative Office has been incorporated, you may open a corporate bank account with any of the local or international banks based in Singapore, and in some cases, overseas.
If you are unable to come to Singapore, you may choose a bank that allows opening of a corporate bank account without your presence. Standard Chartered Bank and HSBC are two of the international banks that allow you to open a bank account without you having to be Singapore.
Post Registration - What you need to know
Registration of Singapore Central Provident (CPF): The Central Provident Fund or CPF is a compulsory pension fund scheme in which the employer and employee contribute a percentage of the monthly salary to the fund. CPF contribution by the employer is mandatory for all local employees who are Singapore citizens or permanent residents earning more than S$50 a month. 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. CPF contribution for foreign employees is not required.
Registered Office Hours: You must have a registered office address and the office must be open to public for minimum of three hours per day during normal business hours on weekdays.
Registration Number: Business registration number must be on all letterheads, invoices, billings or other documents used for official business communications.
Custom Registration: If your Representative Office plans to import and export of product samples in and out of Singapore, you will need to register with the Singapore Customs and obtain a CR Number or commonly known as Custom Registration.
Required Documents for Representative Office Registration
To register a Singapore representative office a completed application along with supporting documents must be filed with International Enterprise Singapore. The processing time for the application is approximately 5 working days.
The following documents are required when registering a representative office in Singapore:- Completed application
- Copy of the parent Company's Certificate of Incorporation
- Copy of the parent Company's latest annual report and audited accounts
- Duly endorsed undertaking to abide by the Terms and Conditions governing Representative Offices in Singapore
In the event when the annual report and audited accounts are not available (for example when the parent company is relatively new), you can self-declare the needed information and provide other supporting details such as company brochures, contracts, website, etc. to support your application. All documents submitted must be in English or an official English translation of the documents.
Generally the approval process is simple as long as the required documents are valid and the intended Representative Office activities are within the scope allowed. In some cases, International Enterprise Singapore may request for additional information for further clarifications.
