SINGAPORE REPRESENTATIVE OFFICE REGISTRATION

Copyright © 2013 Rikvin Pte LtdLast updated on 18 February 2013

SINGAPORE REPRESENTATIVE OFFICE

Singapore has established itself as a reputable financial and regional trading centre. It is the world’s busiest port and a top location for investments in the Asia Pacific region. Factors such as strategic location, a competitive workforce, pro-business environment and forward looking economic policies have enabled Singapore to be the world’s gateway to Asia.

Representative Office

Foreign entities that are keen on exploring the viability of doing business in Singapore, or are interested in using Singapore as a launch pad into the Asia Pacific, may wish to set up a Representative Office (RO). A Representative Office provides a foreign company interested in establishing operations in Singapore an avenue to assess business opportunities in Singapore prior to making any long term or large scale commitment. A Representative Office cannot engage in commercial, revenue-generating activities.

With effect from 1 January 2012, a RO of foreign commercial entity may operate in Singapore for a maximum of three (3) years from its commencement date, provided that the RO status is evaluated and renewed. ROs which decide to continue their presence in Singapore thereafter should register their operations with the Accounting & Corporate Regulatory Authority (ACRA) of Singapore.

Application Requirements

All new applications of foreign commercial entity must fulfil the following criteria

• Sales Turnover of the foreign entity must be more than US$250,000

• No. of years of establishment of the foreign entity must be more than 3 years

• Proposed No. of staff for RO should be less than 5 people

Setup Requirements for Representative Office

• 1 Chief Representative Officer• A Singapore registered office address

Taxation of a Singapore Representative Office

A Singapore representative office cannot engage in commercial revenue-generating activities, and therefore need not file for annual tax returns. However, income paid to the staff of the Representative Office including the Chief Representative is subject to Singapore personal income tax.

If you choose to set up a Singapore Representative Office, you must take the following steps:

1. Submit an application to register the Representative Office. Rikvin can assist you in the registration of your Representative Office.

2. You can apply for an Employment Pass only after you have succeeded in registering the Representative Office. The Employment Pass application is for the Chief Representative who is the appointed staff member from the foreign company. The Employment Pass will allow the Chief Representative to relocate to Singapore to run the Representative Office.

3. You will require a local registered office address. Rikvin can provide you with the use of our corporate registered address on a temporary or long term basis, if needed.

Note: Representative Office registration and Employment Pass application can be processed without you having to be in Singapore.

Copyright © 2013 Rikvin Pte LtdLast updated on 18 February 2013

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 Requirements

Must appoint a Chief Representative who will relocate from 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 and IRAS

No

Annual Filing Not Applicable

Tax Treatment Not Applicable

Tax Benefits No Corporate tax. Employees have to pay personal tax

Cessation of Business upon Death of a Member/Partner

Not Applicable

Validity Period This is a temporary Setup. It is intended not to last more than 3 years

Copyright © 2013 Rikvin Pte LtdLast updated on 18 February 2013

YEAR OF ASSESSMENT: 2012

Chargeable Income Rate (%) Gross Tax Payable ($)

On the first On the next

20,000 10,000

0.0 2

0 200

On the first On the next

30,000 10,000

- 3.5

200 350

On the first On the next

40,000 40,000

- 7.

550 2,800

On the first On the next On the next

80,000 40,000 40,000

- 11.5 15

3,350 4,600 6,000

On the first On the next On the next

160,000 40,000

120,000

- 17 18

13,950 6,800

21,600On the first In excess of

320,000 320,000

- 20

42,350

REPRESENTATIVE OFFICE STAFF PERSONAL TAX RATES

Progressive Income Tax Rates for Representative Office Staff

Copyright © 2013 Rikvin Pte Ltd

RIKVIN PTE LTD

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

Reg No 200100602K EA License No 11C3030

This material has been prepared by Rikvin for the exclusive 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. Where the source of information is obtained from third parties, Rikvin is not responsible for, and does not accept any liability over the content.

Helpful Links:

Company Registration

Singapore Work Visas

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Accounting Services

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