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Setting Up a Representative Office in Singapore
A Representative Office in Singapore is an interim entity from which foreign companies can conduct market research, feasibility studies and liaison work on behalf of its parent company. Unlike a Company, a Representative Office is not required to maintain accounts or file tax returns in Singapore. As such, the key purpose of setting up a Representative Office is to test the Singapore (and regional) markets before committing to incorporating a Company and incurring high maintenance costs.
For foreign companies, setting up a Singapore Representative Office in Singapore serves the following:
- To explore the viability of doing business in Singapore and to test the business environment before committing to any investment decisions.
- To use Singapore as a launch pad into Asia Pacific Regions.
- For marketing and promotional activities on behalf of the Parent Company in Singapore (for which the representative office is permitted to activate a customs account for the import and export of sample products and materials from the parent company).
Please note that the Representative Office in not permitted to engage in commercial activities or to provide any services for a fee, including:
- Engaging in any trading (including import & export) or other business activities that leads directly to revenue generation, whether carried out for itself or on behalf of its parent company;
- Lease warehousing facilities. Any shipment/transshipment or storage of goods must be handled by a local agent or distributor appointed by its parent company;
- Lease its office to other establishments for a fee;
- Enter into commercial business contracts, issue invoices/receipts, open/receive letters of credit and contracts on behalf of its parent company or provide services for a fee.
The Representative Office is obligated to notify the authorities of any changes relating to the appointed representative officer, registered address, registered activities etc. during the course of its existence. In case of changes to the Parent Company, i.e. name change, applicable official documents, such a copy of the Parent Company’s Certificate of Change in name should accompany the notification.
Foreign companies who wish to commence business activities in Singapore will be required to incorporate a Singapore Company.
Application Procedure
To register we will require the following documents:
- A copy of the Parent Company's Certificate of Incorporation.
- The Parent Company's latest audited report and/or management accounts.
- Projections of annual spending for 2 years and manpower requirements.
- Details of representative (to be based in Singapore) and a separate contact person that is from home country (HQ).
- Duly endorsed undertaking to abide by the Terms and Conditions governing the Representative Office in Singapore.
- A set of the Company's brochures (optional).
Approval can take 1 to 2 weeks and is usually valid for one year, on a renewable basis.
After the registration of the Representative Office, the foreign company can apply for an employment pass for its overseas personnel to be stationed in Singapore and/or hire local staff. Most Companies prefer to bring their own representative to helm the Representative Office in Singapore. If this is the same for your Company, we can assist you in applying for an Employment Pass for your foreign staff so that they can legally work in Singapore.
Our Fees
- Registration of a Singapore Representative Office from S$1,500.00, depending on time spent and excluding disbursements.
- Use of our office address for the registered is S$300.00 per annum.
- Application for employment pass – S$ 1,800.00 (including Dependent Pass for applicant’s spouse FOC).
Please contact one of our consultants if you are interested in registering a Representative Office in Singapore. |
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