🌟 Overview of foreign companies setting up offices in Singapore
The Representative Office (RO) applies to foreign companies that are not yet ready to formally establish a legal entity in Singapore, and is mainly used:
✅ Market Research
✅ Pre-business development preparations
✅ Liaise with local customers, suppliers or partners
✅ Representation of the parent company in matters of a non-transactional nature
❗ Focus: ROs must not engage in for-profit business, sign commercial contracts or issue invoices.
✅ Basic Requirements for RO Application
| entry (in a dictionary, encyclopedia etc) | request |
|---|---|
| Parent company background | The parent company must have been established for at least 3 years and should normally have an annual turnover of not less than US$250,000 (approximately S$340,000) |
| Head of RO | A person in charge must be appointed (expatriates can be sent but need to apply for a work permit) |
| business address | Must have a physical office address in Singapore (no P.O. Box addresses) |
| Business Scope | Limited to non-commercial trading activities such as market research, liaison, display of products, participation in exhibitions, headquarters coordination, etc. |
| Registration Validity Period | Initial 1 year, renewable annually for up to 3 years of continuous operation (conversion to a full company required after 3 years) |
✅ Registration Process for RO
1️⃣ Submission of Application to Enterprise Singapore (Online RO Application Form)
2️⃣ Provide the parent company's business registration documents, latest financial statements, information on the person in charge of the RO, etc.
3️⃣ Receive Approval Letter when approved
4️⃣ Getting the person in charge work permit (usually Employment Pass)
5️⃣ Lease office space and formalize operations
⚠️ Matters to note in setting up an RO
🔹 Operational constraints: May not contract, generate revenue, invoice or collect payments. Only non-profit activities may be undertaken.
🔹 Renewals are limited: ROs are only allowed to exist for a maximum of 3 years, after which they must either transform into a company (Pte. Ltd., etc.) or withdraw from Singapore.
🔹 Tax issues: The RO does not act as a taxable entity and is not required to file a corporate tax return, but is required to comply with the personal tax returns of employed persons (e.g. EP holders).
🔹 Number of employees: Generally not more than 5 persons (including expatriates and local employees).
🌱 When is it better to choose RO?
Parent company only wants to test the waters in Singapore first to assess the market environment
No commercial transactions or revenue-generating activities are planned for the short term
Required to act as a point of contact for the parent company in Singapore
📝 List of documents (key materials)
Certificate of incorporation and articles of association of the parent company
Latest audited financial statements of the parent company
Copy of the parent company's business license
Passport and CV of the person in charge of RO
Description of proposed non-profit activities
