If you are a foreign company looking to establish a presence in Singapore, one of the options you can consider is setting up a representative office.
A representative office is a temporary arrangement that allows you to conduct market research, feasibility studies, and liaison activities without engaging in any profit-making or commercial activities. However, not every foreign company can set up a representative office in Singapore.
There are certain eligibility criteria that you need to meet before you can apply for a representative office registration. Here are some of the main criteria that you need to know:
- Your foreign company must have been established for at least three years and have a sales turnover of more than US$250,000.
- Your representative office must have the same name as your foreign company and must indicate that it is a representative office in Singapore.
- Your representative office must have a chief representative who is a staff member of your foreign company and is relocated from the head office. The chief representative is responsible for overseeing the activities and operations of the representative office in Singapore.
- Your representative office can only have up to five staff members, including the chief representative. The staff members can be either relocated from the head office or hired locally.
- Your representative office must only engage in activities that are related to your foreign company’s business, such as market research, feasibility studies, and liaison activities. You cannot conduct any profit-making or commercial activities, such as signing contracts, issuing invoices, providing services, or selling goods.
- Your representative office must comply with the laws and regulations of Singapore, such as paying taxes, filing annual returns, and keeping proper records and accounts.
- Your representative office registration is valid for one year and can be renewed for up to three years. After three years, you must either cease your operations or convert your representative office into a permanent legal entity, such as a subsidiary or a branch.
Setting up a representative office in Singapore can be a good way to test the market and explore business opportunities before committing to a long-term investment.
However, you need to make sure that you meet the eligibility criteria and follow the rules and regulations of operating a representative office in Singapore. If you need any assistance or guidance on setting up a representative office in Singapore, you can WhatsApp us at +65 8822 XERO (9376) and we will be happy to help you.