How to form a Singapore representative office with Rikvin
Foreign companies that are keen on exploring the viability of doing business in Singapore, or are interested in using Singapore as a launch pad into the Asia Pacific, may wish to register a Representative Office (RO) in Singapore.
As a Singapore representative office, this business entity does not acquire its own legal status but is merely an administrative structure. The essential purpose of a representative office is to perform liaison services and establish business contacts, often as an antecedent to the commencement of full-scale business activities in Singapore.
The following are key features of a representative office;
- A representative office cannot enter into any business transactions either in its own capacity or on behalf of the parent company.
- A representative office in Singapore has no power to conclude contracts, provide consultancy for a fee, undertake transshipment of goods, open or negotiate any letters of credit.
- There is no need for a representative office to maintain accounts or file tax returns in Singapore.
- A Singapore representative office essentially allows a foreign company to test the business environment in Singapore before making any investment decisions.
- A representative office is allowed only to perform promotional activities and cannot engage in any other business activities.
- A representative office will be required to incorporate as legal entities in due course if the parent company finally decides to maintain long term operations in Singapore.
A Representative Office cannot engage in commercial revenue-generating activities but only grants foreign companies an avenue to assess business opportunities in Singapore market prior to making any long term or large scale commitment.
If you choose to set up a Singapore Representative Office, Rikvin, a leading company registrar, helps you by providing you simple steps in forming a representative office in Singapore:
1. Prepare and complete the Representative Office application for submission. Rikvin provides assistance in the registration of your Representative Office.
2. You can apply for an Employment Pass only after you have succeeded in registering the Representative Office. This application for an employment pass is for the Chief Representative who is the appointed staff member from the foreign company. The Employment Pass will allow the Chief Representative to relocate to Singapore to run the Representative Office.
3. You will require a local registered office address. Rikvin offers the service of providing you their corporate registered address on a temporary or long term basis, depending on your needs.
As mentioned earlier, a Representative Office cannot engage in commercial revenue-generating activities, and therefore need not file for annual tax returns. However, income paid to the staff of the Representative Office including the Chief Representative is subject to Singapore personal income tax.
Rikvin has effectively facilitated the Singapore company formation and Singapore representative office 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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