Forming a Singapore Representative Office with Rikvin
In order to assess business opportunities in Singapore market, foreign companies interested in setting up business operations in Singapore will find a Representative Office to be valuable. A Representative Office is likewise ideal for promoting a foreign company’s brand as well as work with the local agents and distributors. It is a set up for just a short term and it is restricted from engaging in commercial revenue-generating activities such as concluding contracts and opening of Letter of Credit. The basic features of a Representative Office are the following:
- It is considered an administrative extension of a foreign company
- It must use the name of its parent company.
- It is prohibited from engaging in commercial revenue-generating activities, thus it is not required to file annual tax returns. However, income received by the to the staff of the Representative Office including the Chief Representative is subject to personal income tax.
- It is not an incorporated business entity so it need not comply with the filing requirements
- It is not allowed to negotiate any trading instruments as well as lease warehouses. However, it is permitted to lease office space.
- In order to support its restricted administrative activities, it is allowed to appoint a limited number of local and/or foreign staff
- In order to import and export product samples, it may ask for a central registration number from the Singapore Customs
- It is a short term set up valid only for up to 3 years with mandatory annual renewal.
The advantages of a Representative Office are as follows:
- Foreign companies are given the opportunity to explore business opportunities in Singapore market before plunging into long term or big financial commitment.
- It is an ideal avenue for performing market research and promoting brand identity.
- It provides an excellent platform for working with local agents and distributors.
The disadvantages of a Representative Office are as follows:
- It is prohibited from engaging in commercial revenue-generating activities.
- It is only for a limited period of time and needs to upgrade after 3 years to a branch office or a subsidiary, or otherwise de-register.
- Since it is not a separate legal entity, all its debts, losses and liabilities are shouldered by the foreign parent company.
Rikvin, the leading specialist in registration of companies in Singapore, can help you set up your Representative Office within 5 working days provided all the required documents are in order.
Once your application of your Singapore Representative Office is approved, Rikvin can provide you assistance in processing the application of Employment Pass for the Chief Representative who plans to relocate to Singapore in order to manage the Representative Office operations.
Rikvin has effectively facilitated the Singapore representative office and company registration for both non-resident and resident financiers build business firms in Singapore.
Incoming calls in our phones are answered by live persons and not by an answering machine. We recognize the importance of your time and we are aware that technology cannot replace a person most especially, when we need to make vital business moves. If you are interested in learning more about Rikvin’s Services kindly email us at info@rikvin.com or give us a call at +65 64838887.
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