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. It serves as an ideal entry point, particularly for those looking to enter Singapore's competitive business landscape. However, it's crucial to note that an RO is subject to restrictions, as it cannot engage in revenue-generating activities such as trading, contract conclusion, fee-based services, invoicing, or opening Letters of Credit. This avenue is particularly appealing to foreign entities in sectors like manufacturing, international trade, wholesale, and trade-related businesses, as they seek to explore the potential of doing business in Singapore or use it as a stepping stone into the Asia Pacific region.

Key benefits of establishing a Representative Office in Singapore:

1. Market Assessment: An RO serves as a reconnaissance tool for foreign companies. It enables them to assess the demand for their products or services, understand local consumer behavior, and evaluate the competitive landscape. This information is crucial in making informed business decisions.
2. Risk Mitigation: By setting up an RO, companies can minimize risks associated with entering a new market. They can study local regulations, industry dynamics, and potential challenges without making significant financial or operational commitments.
3. Networking and Relationship Building: An RO can facilitate networking and relationship building with local businesses, government agencies, and potential partners. This helps in establishing a strong foundation for future business endeavours.
4. Brand Presence: While an RO cannot engage in revenue-generating activities, it can provide a physical presence in Singapore, enhancing brand recognition and credibility. This presence can also be valuable for marketing and public relations efforts.
5. Gateway to Asia: Singapore is often seen as a strategic gateway to the broader Asia Pacific region. Many foreign businesses use their Singapore-based ROs as a launch pad for expansion into neighbouring markets, thanks to Singapore's well-developed infrastructure and connectivity.

Requirements and Compliance: To establish an RO in Singapore, companies need to meet specific criteria, including a minimum sales turnover, a history of the parent company, and adhering to certain documentation and operational requirements. These conditions are in place to ensure that ROs operate within the defined scope of their activities.

Tax and Administrative Simplification: One of the notable advantages of operating an RO is the simplified administrative and tax requirements. As an RO doesn't have its own legal entity, it is exempt from many of the tax obligations and regulatory filings that other business entities are subject to, making it a cost-effective option for market exploration.

A representative office can be set up by adhering to the following requirements:

Conditions:

Documents Required:

Additional Requirements:

Documentation and Tax Exemption:

Since an RO doesn't have its own legal entity, it is exempt from taxes, statutory filings, and annual reporting requirements.

Timeline:

Setting up the RO typically takes 5 to 7 working days from the successful submission of the application.

Water and Shark's Assistance:

Water and Shark (W&S) can provide comprehensive support for establishing an RO in Singapore. Their services encompass application processing, documentation, approval, and incorporation. As a one-stop solution, W&S also offers banking-related support services and other ancillary solutions to fulfill your business requirements.