Setting up a representative office for foreign entities in Singapore allows companies to explore market opportunities and establish a local presence. This guide outlines the requirements and procedures involved in this process.
Representative Office Definition
A representative office (RO) is defined as a non-business element laid out by an unfamiliar organization to participate in exercises that advance and work with the matters of its parent organization. Not at all like a branch or auxiliary, a RO can’t lead business straightforwardly, create income, or sign agreements. Its essential capabilities are regularly restricted to statistical surveying, showcasing, and contact exercises. The motivation behind a RO is to give the unfamiliar organization a neighborhood presence in an unfamiliar market, permitting it to assemble data and comprehend the market elements prior to focusing on a more critical venture.
Representative Office Definition
Representative Office Requirements for Foreign Entities in Singapore
For unfamiliar organizations expecting to lay out a delegate office in Singapore, some requirements and rules should be met when setting up a representative office for foreign in Singapore:
1. Parent Company Requirements:
- The parent organization has probably been laid out for no less than three years.
- The parent organization should have a yearly deals turnover of something like USD 250,000.
- The expected exercises of the RO should be restricted to statistical surveying, possibility studies, and contact work.
Representative Office Requirements for Foreign Entities in Singapore
2. Activities Permitted:
- The RO is restricted from engaging in commercial, revenue-generating activities.
- It can conduct market research to assess the business environment.
- It can promote the business and services of the parent company.
- It can act as a communication channel between the head office and Singaporean clients or partners.
3. Staffing:
- The RO can have a limited number of foreign employees. Typically, up to five employees, including both local and foreign staff, are allowed.
4. Validity Period:
- The enrollment of a RO is legitimate for one year and can be restored yearly for as long as three years. Following three years, the RO is supposed to change into a branch office or an auxiliary in the event that the organization means to proceed with its presence in Singapore.
Procedure to Set Up a Representative Office in Singapore
The procedure to set up a representative office (RO) in Singapore involves several steps:
1. Preparation of Documentation:
- Application Structure: The unfamiliar organization should finish an application structure given by Big Business Singapore, the public authority office liable for endorsing ROs.
- Parent Organization’s Data: This incorporates subtleties, for example, the parent organization’s endorsement of joining, the most recent yearly report, and evaluated accounts.
- Proposed Activities: A clear description of the intended activities of the RO in Singapore.
- Arrangement of Manager Specialist: The unfamiliar organization should designate a central delegate who will supervise the exercises of the RO in Singapore
2. Submission of Application:
- The completed application form and required documents should be submitted to Enterprise Singapore. This can be done online through the Enterprise Singapore website.
Procedure to Set Up a Representative Office in Singapore
3. Review and Approval:
- Venture Singapore will audit the application and may demand extra data or explanation. The survey cycle regularly requires around 5-10 working days.
4. Notification of Approval:
- When the application is endorsed, Undertaking Singapore will give an endorsement letter. This letter affirms the foundation of the RO and determines the states of its activity.
5. Establishment of RO:
- After getting the endorsement, the unfamiliar organization can continue with setting up the workplace space and starting its exercises as determined in the endorsement letter.
Form Register of Office Representatives in Singapore
The Register of Office Representatives form is a crucial part of the application process for setting up an RO in Singapore. This form requires detailed information about the individuals who will represent the RO in Singapore. The following information is typically required:
Form Register of Office Representatives in Singapore
1. Personal Details of Representatives:
- Full name
- Passport number and nationality
- Residential address
- Contact details
2. Professional Details:
- Current job title and role within the parent company
- Duration of employment with the parent company
- Qualifications and professional background
3. Role within the RO:
- Specific responsibilities and activities to be undertaken in Singapore
- Duration of assignment in Singapore
The structure should be finished precisely and submitted as a feature of the application to Big Business Singapore. The agents recorded in this structure are answerable for guaranteeing that the RO works in consistency with Singapore’s guidelines and the circumstances specified in the endorsement letter.
Conclusion
Laying out a representative office in Singapore gives unfamiliar organizations essential traction in a dynamic and business-accommodating climate. By sticking to the particular necessities and following the recommended strategies, unfamiliar substances can use the advantages of having a nearby presence to investigate potential open doors and construct connections in the Singaporean market. The cycle, while definite, is intended to guarantee that the delegate office works inside the lawful structure and adds to the general business biological system in Singapore.
