Singapore Representative Office Registration Guide

1. SINGAPORE REPRESENTATIVE OFFICE REGISTRATION

2. SINGAPORE REPRESENTATIVE OFFICE
Singapore has established itself as a reputable Setup Requirements for Representative
financial and regional trading centre. It is the world’s Office
busiest port and a top location for investments in the
Asia Pacific region. Factors such as strategic location, • 1 Chief Representative Officer
a competitive workforce, pro-business environment • A Singapore registered office address
and forward looking economic policies have enabled
Singapore to be the world’s gateway to Asia. Taxation of a Singapore Representative
Office
Representative Office
A Singapore representative office cannot engage
Foreign entities that are keen on exploring the viability in commercial revenue-generating activities, and
of doing business in Singapore, or are interested in therefore need not file for annual tax returns. However,
using Singapore as a launch pad into the Asia Pacific, income paid to the staff of the Representative Office
may wish to set up a Representative Office (RO). A including the Chief Representative is subject to
Representative Office provides a foreign company Singapore personal income tax.
interested in establishing operations in Singapore an
If you choose to set up a Singapore Representative
avenue to assess business opportunities in Singapore
Office, you must take the following steps:
prior to making any long term or large scale
commitment. A Representative Office cannot engage
1. Submit an application to register the
in commercial, revenue-generating activities.
Representative Office. Rikvin can assist you in the
registration of your Representative Office.
With effect from 1 January 2012, a RO of foreign
commercial entity may operate in Singapore for a
2. You can apply for an Employment Pass only
maximum of three (3) years from its commencement
after you have succeeded in registering the
date, provided that the RO status is evaluated
Representative Office. The Employment Pass
and renewed. ROs which decide to continue their
application is for the Chief Representative who
presence in Singapore thereafter should register
is the appointed staff member from the foreign
their operations with the Accounting & Corporate
company. The Employment Pass will allow the
Regulatory Authority (ACRA) of Singapore.
Chief Representative to relocate to Singapore to
run the Representative Office.
Application Requirements
3. You will require a local registered office address.
All new applications of foreign commercial entity
Rikvin can provide you with the use of our
must fulfil the following criteria
corporate registered address on a temporary or
• Sales Turnover of the foreign entity must be more long term basis, if needed.
than US$250,000
Note: Representative Office registration and
• No. of years of establishment of the foreign entity Employment Pass application can be processed
must be more than 3 years without you having to be in Singapore.
• Proposed No. of staff for RO should be less than
5 people
Last updated on 18 February 2013 Copyright © 2013 Rikvin Pte Ltd

3. SINGAPORE REPRESENTATIVE OFFICE
Entity Name Must be the same as parent company
Activities Allowed Can only conduct market research or coordination activities
Suitable For Foreign Companies who wish to set up a temporary vehicle in
Singapore to conduct research and act as liaison office
Disadvantages It is a temporary vehicle and cannot generate revenue;
Proposed No. of staff for RO should be less than 5 people
Ownership No Ownership
Separate Legal Entity No
Cap on Number of Members Not Applicable
Minimum Setup Must appoint a Chief Representative who will relocate from
Requirements headquarters;
Sales Turnover of the foreign entity must be more than US$250,000 p.a.;
Must be established for more than 3 years
Limited Liability No
Need for Audited Accounts No
Filing of Accounts with ACRA No
and IRAS
Annual Filing Not Applicable
Tax Treatment Not Applicable
Tax Benefits No Corporate tax. Employees have to pay personal tax
Cessation of Business upon Not Applicable
Death of a Member/Partner
Validity Period This is a temporary Setup. It is intended not to last more than 3 years
Last updated on 18 February 2013 Copyright © 2013 Rikvin Pte Ltd

4. REPRESENTATIVE OFFICE STAFF PERSONAL TAX RATES
Progressive Income Tax Rates for Representative Office Staff
YEAR OF ASSESSMENT: 2012
Chargeable Income Rate (%) Gross Tax Payable ($)
On the first 20,000 0.0 0
On the next 10,000 2 200
On the first 30,000 - 200
On the next 10,000 3.5 350
On the first 40,000 - 550
On the next 40,000 7. 2,800
On the first 80,000 - 3,350
On the next 40,000 11.5 4,600
On the next 40,000 15 6,000
On the first 160,000 - 13,950
On the next 40,000 17 6,800
On the next 120,000 18 21,600
On the first 320,000 - 42,350
In excess of 320,000 20
Last updated on 18 February 2013 Copyright © 2013 Rikvin Pte Ltd

5. Helpful Links:
Company Registration
Singapore Work Visas
Business Services
Accounting Services
Offshore Company
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20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Line : (+65) 6320 1888
Fax : (+65) 6438 2436
Email : info@rikvin.com
Website : www.rikvin.com
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EA License No 11C3030
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use of the party to whom Rikvin delivers this material.
This material is for informational purposes only and has
no regard to the specific investment objectives, financial
situation or particular needs of any specific recipient.
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parties, Rikvin is not responsible for, and does not accept
any liability over the content.
Copyright © 2013 Rikvin Pte Ltd