Singapore Representative Office Explained

By Author: Ashley V.
Total Articles: 63
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Another ideal business scheme which provides interested foreign companies or entrepreneurs ability to analyse business opportunities in Singapore is a Singapore Representative Office. Before making any long term or a fixed commitment the said scheme is the safest business scheme available. On the other hand, however, a representative Office is not permitted to mingle with commercial income-generating activities.

Below are some of the main features of a Singapore Representative Office:

1. It is like an annex to the foreign company.

2.. It must have the same name as the parent company.

3. Since it cannot do commercial profit-generating transactions there is no need to file for annual tax returns. But the income earned by the staff of the Representative Office including the Chief Representative is subject to personal income tax.

4. Since it is not an incorporated business entity, there's no need comply with the filing of legal requirements.

5. It is not allowed from any negotiations in trading paraphernalia or warehouse leasing. However, leasing office space is allowed.

6. To be ...
... able to support its limited administrative activities it is allowed to appoint limited number of staff-- both local and foreign.

7. In order for a Singapore Representative Office to have the ability to import and export product samples it is allowed to obtain a central registration number from the Singapore Customs.

8. It is a short-term setup for up to 3 years with mandatory annual renewal.

The ability to explore business opportunities in Singapore market before making any significant financial commitment is considered as one of the advantages of establishing a Singapore representative office which includes foreign companies. Furthermore, it gives an avenue to conduct market research and promote brand identity and also it serves as a good foundation to collaborate with local agents and distributors.

However, despite being advantageous in a major way, there are little drawbacks of this business scheme which includes the limitations to engage in profit-generating activities. Also since it is a short-term setup it required to upgrade to a branch office or a subsidiary after 3 years or make another registration. In addition, it does not have a separate legal identity, and so, in effect, the foreign parent company is totally obliged to its debts, losses and liabilities.

Finally, availing of the business registration firm in Singapore is expedient to be able to process the registration of any preferred business scheme appropriately.

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Asiabiz is the leading Singapore Company Incorporation Solutions Specialists. It has successfully helped foreign entrepreneurs form 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.