How to Set Up a Representative Office (RO) in Singapore

A Representative Office (RO) is an ideal vehicle to assess the business opportunities in Singapore prior to making any long term or large-scale commitment. However, it is to be highlighted that a RO is not permitted to engage in commercial revenue-generating activities (directly or on behalf of the parent company) such as trade in goods/services (including import or export), conclude contracts, provide services for fees, issue invoices/receipts and open Letters of Credit. Foreign entities from the manufacturing, international trading, wholesale, trade, and trade-related business sectors 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 set-up a RO.

A Representative Office can be set up by adhering to the following requirements:

Conditions:

• The sales turnover of the foreign company must be at least US$ 250,000
• The foreign company (parent company) must be established for a minimum period of 3 years
• The proposed number of staff for the representative office should not exceed 5

Documents Required:

• Complete Application Form [to be submitted to enterprise Singapore (Govt. Authority) for approval]
• A copy of the Certificate of Incorporation of the foreign entity
• A copy of the latest audited accounts of the foreign entity
• Endorsed and signed statement to abide by the terms and conditions governing the representative offices in Singapore

Additional Requirements:

• The RO will be set up in the name of the parent entity
• “Representative Office registered in Singapore” should be mentioned on its letterheads, name cards etc.
• The office must appoint a staff member from the foreign company or a Singapore resident employee of the foreign parent company who will act as a representative of the parent company and execute operations in the Singapore office
• Any alteration in the representative office, including address, registration activities, or other, must be informed to authorities in advance
• If the parent company shifts, the RO must be deregistered
• A representative office has a limitation of temporary nature; it can run for a maximum of three years from the date of commencement

Documentation and Tax Exemption:

As the Representative Office has no legal entity, it is not required to pay any taxes, file the statutory documentation, and handle yearly filing.

Timeline:

Setting up the office takes 5 to 7 working days from the day of successful submission of application.

Water and Shark’s Assistance:

W&S can help you set up a Representative Office in Singapore. We shall assist you in all matters ranging from application, documentation, approval, and incorporation. As a one stop solution, W&S provides banking related support service and other ancillary services that cater to all your business needs and requirements.

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