Singapore Representative Office Features And Its Advantages

By Author: Ashley V.
Total Articles: 63
Comment this article

It is wise to perform a series of studies and market research on the feasibility of the business before pouring out huge investments especially those whose market are deemed risky but promising.

With this, some foreign companies in Singapore have registered a representative office which is designed to perform non-commercial activities that aim to determine the profitability and viability of their products and services.

If a particular business proves to be feasible then it would be safe for an investor to engage in a full-blown business activity and spend considerable amount in investments.

As stated in the Singapore law, a representative office is not a legal business entity but rather an arrangement which is administrative in nature and should therefore be non-commercial and profit-generating.

A representative office are limited in the activities in which they can be engage into. According to the Accounting and Corporate Regulatory Authority (ACRA) a representative office can build business contacts, supervise its parent company's local distributors and agents, perform extensive market research, ...
... and do liaison services without entering in to a legal contract.

It is important to remember that a Singapore representative office is prohibited to perform profit-generating activities, lease warehouse facilities, lease office to another business organization, enter in to any agreements and contracts, and undertake commercial activities.

The following are essential information about a representative office:

1. The registration of the representative office by a foreign company should be on an annual basis for a period of three years. After three years, the company can no longer be registered as a representative office. Therefore, in order for the company to continue its operation in the country it must be registered on a different arrangement such as a subsidiary company or a branch office.

2. A representative office should bear the same name as the parent company unless otherwise the name has been used by another company in Singapore or are deemed as indecent and vulgar by Singapore authorities.

3. As a legal requirement, a chief representative officer from the main headquarter should be appointed and act as a head in the office.

4. The acts and losses of the parent company's Singapore representative office is accounted for by the parent company.

5. This office is only allowed to employ a limited number of foreign and local workers who will only perform non-commercial activities.

6. Since a representative office is not considered as an incorporated company, it is not required to submit tax returns, maintain legal documents and hold general meeting.

7. This office should inform other business entities about its status through its communications materials, staff's name cards, and name plaque.

--------------
Asiabiz is the leading Singapore Company Incorporation Solutions Specialists. It has successfully helped foreign entrepreneurs setup a Singapore Representative Office. Our office is located at Raffles Place, in the heart of the Singapore business district. ("CBD") If you're in our neighborhood and want to discuss any aspect of our service then feel free to come in to our offices during business hours for advise and consult.