Most overseas corporations set up a representative office (RO) in Singapore with the primary aim of testing the performance of the Singapore market.
This is an important strategy for foreign investors planning to take a wise move prior to investing heavily in this market.
Once the RO is legally registered, the office would only handle administrative tasks including feasibility studies and in-depth market research.
One thing that should be clear is that the RO is a non-profit generating office that is based in Singapore.
This is because the office is legally not allowed to engage in core business activities of the parent company.
The representative office also is not legally identified in the corporate world of Singapore.
As a result, RO is regarded as a liaison office.
1. The name used for the representative office should be similar with parent company’s name.
2. One chief executive is required to be in charge of RO’s operations.
3. The representative office can hire up to five (5) local works to act as the support staff team.
4. Singapore Representative Office Registration is valid for only one year. Nonetheless, certain provisions can extend this to three (3) years.
5. After the validity of the office expires, the office ought to be converted into a company’s branch office for it to successful continue with the organisation’s activities.
6. For eligibility purposes, parent company’s yearly turnover should not be less than SGD 250,000.
7. In addition to the turnover figure mentioned above, the established identity of the company ought to be more than three (3) years.
8. If the parent company stagnates, the representative office gets de-registered.
9. Any key changes involving the representative office should be reported to ACRA. Such changes include a change of activities or even change of registered office address. This change should be reported at least a month before to the mentioned government body.
10. Certificate copy detailing name change of the parent company should also be provided to ACRA.
Some of the documents that would be required during the registration process of RO include:
1. Parent company’s incorporation certificate.
2. A detailed and fully completed application form.
3. A document indicating latest audit accounts & annual reports belonging to the parent company.
4. A signed document signifying that the RO accepts terms and conditions stipulated in Singapore with regards to representative offices.
If you are seeking to gain some solid ground in Singapore by setting up a Singapore representative office, it is wise that you rely on experienced company secretarial service team just like the ones we provide.
By relying on our services, you can rest assured of quality services tailored to meet your company’s demands in areas such as:
1. Assistance in successfully completing the Singapore RO’s registration process.
2. Preparing and filing of the indispensable paperwork.
3. Clarification of queries that could be raised by government authorities.
4. Successfully applying for the employment pass for foreign workers that would have to relocate to Singapore.
5. Accounts opening assistance with the banks in Singapore.
6. License renewal services.
7. Support required when the RO needs to change to a branch office of the parent company.
For more information on this, contact our company secretarial service team today.