Singapore Representative Office: A Launch Pad for Foreign Companies

					Singapore Representative Office: A Launch Pad for
Foreign Companies
Jacqueline Chia

A representative office is a setup for foreign companies that are interested in
evaluating business opportunities in Singapore, and conducting feasible studies and
market research which can determine the viability and profitability of their goods and

According to business registration specialist Rikvin, Singapore representative office is a
good launching pad for foreign businessmen and companies that are operating in a
highly speculative but promising market.

“This setup will allow foreign businessmen to test the water first before jumping in to
a full operation and spending huge investments,” the company said.

Aside from conducting an extensive market research, Rikvin said that a representative
office is also used by foreign companies in promoting their brands and working with
the main headquarter’s local agents and distributors.

In addition, foreign companies also use this setup as a way to provide customer
assistance which should not be related to repair and technical services.

However, the business registration specialist warned foreign companies with a
representative office from engaging in any activities that will generate profits or
commercial in nature.

“One of the most important things to remember is that this setup is prohibited to
engage in revenue-generating activities as this is not a legal business entity per se,”
the company added.

Rikvin also said that a representative office is not allowed to enter in to a business
contract on behalf of its foreign parent company.

And since this office is also prohibited to store and ship goods, its parent company
should appoint a local distributor or agent that will perform such activities.

But despite such restrictions, Rikvin said that a representative office is still considered
as an extension of its foreign parent company which is directly liable for its acts,
losses, and liabilities.

“While there are many limitations imposed to a representative office, foreign
companies should realize that this should only be treated as a temporary setup that
will pave way for their long-term business goals,” the company said.

According to the International Enterprise (IE), which is the governing body for the
representative offices in Singapore, this setup is only allowed to operate for a
maximum of three years, and after this period, foreign companies should register for
another business entity such as a subsidiary company or branch office if they want to
continue their existence in the country.

Meanwhile, foreign companies can delist their representative office anytime they want
and shift to a subsidiary company or branch office if they need a greater freedom in
conducting business.

Contact Rikvin

Rikvin is the leading Singapore Representative Office Registration and Singapore
Employment Pass Application specialists. It has assist thousand of foreign
entrepreneurs setup up and form a Singapore Company.

Our office is located at Raffles Place, in the heart of the Singapore business district.

If you're in our neighborhood and want to discuss any aspect of our service then feel
free to come in to our offices during business hours. Appointments are welcome but
definitely not necessary.

20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436

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