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Determining the Profitability of a Business When You Incorporate a Singapore Company
Determining the Profitability of a Business When You Incorporate a Singapore Company
A representative office is a business setup in Singapore that allows foreign companies to conduct market research and feasibility studies
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(pr4links.com)
24/09/2010
"The international community has always considered Singapore as a reputable financial center and a viable trading center in the Asia Pacific region.With this many companies abroad want to explore the country with its countless of business opportunity."
September 24, 2010 - A representative office is a business setup in Singapore that allows foreign companies to conduct market research and feasibility studies that will help them determine the profitability of their products and services, according to business registration firm AsiaBiz Services.
“The international community has always considered Singapore as a reputable financial center and a viable trading center in the Asia Pacific region. With this, many companies abroad want to explore the country with its countless of business opportunities,” the company added.
Most experts believe that a representative office is a great launch pad for foreign companies planning to determine the success rate of their products and services in the country or in the whole region.
By testing the business environment in the country before committing to a full operation and making investment decisions, foreign companies, investors, and businessmen may avoid financial losses.
Aside from conducting market research, a representative office is also legally allowed to perform these following activities: oversee the activities of its parent company’s local agents and distributors; offer customer support as long as it will not involve repair and technical services; and act as a liaison office of its parent company as long as it will enter in to a legal contract.
Foreign companies should know that their representative office is prohibited to engage in any commercial activities, or things that will generate profit. In addition, they are not allowed to give services for fees, enter in to a business contract, lease warehouse facilities, lease office to another establishment for fee, conduct trading activities, and give receipts and invoices.
Because a representative office is limited to perform commercial activities, AsiaBiz said that foreign companies should only see this as a temporary setup.
“The government does not allow foreign companies to operate a representative office for more than three years. With this, those businessmen who want to continue their operation in the country should register a legal business entity allowed to conduct commercial activities,” the business registration said.
Foreign companies that want to engage in revenue-generating activities are required to register a subsidiary company or branch office to the Accounting and Corporate Regulatory Authority (ACRA).
While these two business structures allow any foreign companies to engage in commercial activities in Singapore, most experts believe that the subsidiary company is probably the more ideal since it enjoys all the local tax benefits being incorporated in Singapore.
Another advantage of a subsidiary company is that foreign companies enjoy limited liability which means that it is not legally responsible for the acts and financial losses of their subsidiary office.
More Information:
AsiaBizServices is the leading provider of Business Solutions in Singapore and has successfully helped thousands of foreign and local entrepreneurs incorporate a Singapore Company.
AsiaBizServices.com
address: 120 Telok Ayer Street Singapore 068589
phone: +6563034614
email: sales@asiabizservices.com
website: http://www.asiabizservices.com/
About
Asiabiz Services Pte Ltd
120 Telok Ayer Street
Singapore 068589
Phone: (+65) 6242 6533
Fax: (+65) 6303 2670
E-mail: sales@asiabizservices.com
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