Bestar Singapore Reply to Inquiry about Setting Up a Representative Office (RO) in Singapore
- Roger Pay
- 2 days ago
- 3 min read
Bestar Singapore reply to inquiry about setting up a Representative Office (RO) in Singapore
Inquiry: Setting up a Representative Office (RO) in Singapore – Bestar Corporate Services
Dear Client,
Thank you for reaching out to Bestar Singapore. We would be pleased to assist your organization in evaluating and establishing your business presence in Singapore.
A Representative Office (RO) is an excellent, low-risk setup for foreign companies looking to explore market opportunities and conduct feasibility studies in Singapore and the wider Asia-Pacific region before committing to a permanent establishment.
To help you assess if this structure fits your immediate goals, we have summarized the core requirements and permitted boundaries below:
1. Eligibility Criteria for the Parent Company
Enterprise Singapore (the governing authority for commercial ROs) enforces strict requirements for the foreign parent entity:
Years of Establishment: The parent company must have been established for at least 3 years.
Financial Standing: The parent company’s annual sales turnover must be at least USD 250,000.
Staffing Limit: The RO staff strength in Singapore must be kept to fewer than 5 people (maximum of 4).
Local Representative: A Chief Representative must be appointed to oversee the office.
2. Permitted vs. Restricted Activities
Because an RO is a temporary, non-commercial vehicle without a separate legal identity, its activities are strictly limited.
Permitted Activities (Market Exploration) | Restricted Activities (Commercial Operations) |
|---|---|
• Conducting market research & feasibility studies | • Engaging in sales, trading, or revenue generation |
• Gathering competitive intelligence & price data | • Signing commercial contracts or leasing warehouses |
• Handling customer inquiries & cultivating trade contacts | • Issuing invoices, receipts, or letters of credit |
• Participating in trade shows & exhibitions | • Providing services for a fee to local clients |
3. Validity and Future Transition
1-Year Validity: An RO is approved for one year at a time and must be renewed annually at a fee of SGD 200.
Maximum 3-Year Lifespan: An RO can operate in Singapore for a maximum of 3 years. Beyond this window, Enterprise Singapore expects the entity to either close down or upgrade to a permanent structure registered with ACRA (such as a Subsidiary Private Limited Company or a Foreign Branch Office).
Required Documents to Start
To prepare the application, we will require soft copies of the following documents (all must be in English or accompanied by certified translations):
Certificate of Incorporation or Registration Certificate of the parent company.
Latest Audited Accounts or annual reports of the parent company.
A signed Letter of Purpose on the parent company's official letterhead, detailing the intended market research activities in Singapore.
How Bestar Can Assist
Bestar Singapore Reply to Inquiry about Setting Up a Representative Office (RO) in Singapore
As a registered filing agent, Bestar can act as your local proxy to seamlessly navigate the application process via Enterprise Singapore's portal, manage the required documentation, and assist with any subsequent Employment Pass (EP) applications for your designated representative.
Cost Breakdown: Registering a Representative Office (RO) in Singapore
We have outlined the standard cost breakdown for establishing and maintaining a Representative Office (RO) in Singapore.
The initial setup involves official government statutory fees, our professional service fees for handling the registration, and optional visa processing if you plan to relocate an overseas executive.
1. Initial Setup & Registration Costs
Fee Category | Description | Amount (SGD) |
|---|---|---|
Government Fee | Official application fee collected by Enterprise Singapore (non-refundable) | $200 (per year) |
Bestar Professional Fee | Document review, preparation of the Letter of Purpose, and online portal filing | $800 |
Registered Address | Provision of a compliance-ready, Singapore business address (if required) | $180 (annual) |
2. Optional: Relocation & Work Pass (Employment Pass)
If the parent company intends to send a foreign executive (such as the Chief Representative) to manage the Singapore office, they must obtain a valid work pass.
Bestar EP Application Fee: $1,300
MOM Government Fees Included:
Ministry of Manpower (MOM) Application Fee: $105
MOM Issuance Fee (upon approval): $225
3. Ongoing Annual Maintenance
Because an RO is a temporary administrative vehicle that cannot generate revenue, it is exempt from corporate tax filings and local auditing requirements. Your only ongoing yearly compliance obligations are:
Annual Renewal: Government renewal fee of $200 paid to Enterprise Singapore (for a maximum of 3 years).
Bestar Renewal Filing Fee: $500.
Total Investment to Start
Excluding work pass relocation, the total initial investment to get your office approved and registered is SGD 1,180, inclusive of government disbursements.
Could you please share a bit more about your parent company's industry and your target timeline for this setup?
We can issue a formal invoice once you provide the initial green light. Let us know if you would like us to draft the official Letter of Purpose to kickstart the paperwork.
We look forward to collaborating with you.
Warm regards,
Bestar
Singapore
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