Singapore Representative Office Registration

singapore-representative-office-registration

Singapore representative office registration is a definitive opportunity to foreign companies, for investigating the local market. A representative office (RO) is generally, tasked with conducting market studies and research activities. Although a valid Singapore representative office registration procedure is followed, the RO is not allowed to participate in any kind of business activities.

Understanding the Concept of Singapore Representative Office Registration

Indulging in Singapore representative office registration is an ideal option for interested foreign companies wanting to test the waters in Singapore, before making a huge investment in future. Such foreign companies by setting up a representative office can analyze, interpret and understand the potential of Singapore and surrounding markets for their business. After completing Singapore representative office registration, the RO is considered as a temporary setup engaging mainly in administrative tasks such as market research and feasibility studies.

The representative office is allowed to carry out only the tasks, that in no way are entitled to generate profit. The ROs are refrained from indulging in core business activities, which generates revenue for the company. The RO do not possess any legal identity in the Singaporean corporate environment; therefore, is mainly viewed as a liaison office. Even if the parent company carries out a lawful Singapore representative office registration procedure, it is prohibited from indulging in any type of contracts, negotiations, or getting involved in trading or leasing of any kind.

Few Facts about Singapore Representative Office Registration

Name of the representative office should be the same as that of the parent company
The RO should have one chief executive who should look after the operation of the RO
The RO can hire maximum 5 local employees as a part of the support staff
The validity of Singapore Representative Office Registration is 1 year; however, provisions are there to extend the same up to 3 years.
Once the license expires, the RO should be converted to a subsidiary or a branch office to continue its operation
The parent company should have an annual turnover of S$250,000, to be eligible to setup RO in Singapore
The parent company must have an established identity of more than 3 years
If in case the parent company becomes dormant, the RO will get deregistered in Singapore
In case of changes in the structure of the RO, for example, change in address and activities, the change must be notified to ACRA at least one month prior to the change
If the name of the parent company changes, a certified copy of the parent company’s ‘Certificate of Name Change’ should be provided to ACRA
The RO can obtain a central registration number for importing and exporting sample products and materials to and from the parent company. However, trading activities using the central registration number is strictly prohibited.