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Singapore Representative Office Registration Guide 2013
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 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. Copyright © 2013 Rikvin Pte Ltd
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