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Asiabiz Discusses Singapore Representative Office Advantages
Asiabiz Discusses Singapore Representative Office Advantages
Foreign and international companies can explore the business potential of Singapore by establishing a representative office
Singapore,
Singapore,
Singapore
(pr4links.com)
25/10/2010
Foreign and international companies can explore the business potential of Singapore by establishing a representative office. In this way, they can determine the marketing and operational strategies they can adopt before investing huge sums of money and engaging in to a full-blown business operation.
According to leading business registration firm AsiaBiz Services, a Singapore Representative Office is primarily used for conducting market research and feasibility studies, making this setup the most ideal launch pad for international and foreign companies.
“By determining the market potential and studying the business environment, foreign corporate entities can avoid huge financial losses due to wrong market approach,” AsiaBiz said.
Aside from conducting market research, the business registration firm said that a Singapore representative office is used by foreign companies in building more business contacts and overseeing the activities of their local distributors and agents.
However, AsiaBiz warned that foreign corporate entities with a representative office are prohibited to engage in any money-generating activities and commercial operations such as leasing warehouse facilities, selling products and giving services for a fee, and shipping and storing products in Singapore.
In addition, the firm said that a Singapore representative office should only be seen as a temporary setup since the government does not allow foreign business entities to operate this for more than three years.
“It is important to remember that this office only serves as a launch pad for a more complex, ambitious operation. Besides, the authorities believe that the three-year period is enough for any companies to determine the business potential of Singapore,” AsiaBiz said.
After three years of operating a representative office, or even earlier, the firm advised foreign companies to shift to another business structure, such as a branch office or subsidiary company, if they want to engage in commercial activities that will generate profits.
In legal terms, a representative office is an extension of its parent company, which means that the head office is directly liable for the acts, financial losses, and duties of its Singapore-based office.
And because a foreign company is directly responsible for the acts of its local office in Singapore, it is legally required to appoint a chief representative from the headquarter who must supervise the activities of a Singapore representative office.
Meanwhile, AsiaBiz said that foreign companies are only allowed to appoint a limited number of employees, both local and foreign, who will support the restricted activities of the office.
Asiabiz is an ACRA registered service bureau. The firms provides a complete corporate solution under one roof to Form A Singapore Company and process Singapore Company Incorporation of private limited companies with the opening of corporate accounts, corporate services including accounting, tax, immigration related to work passes visa and compliance services in Singapore.
For more information:
AsiaBizServices.com
address: 120 Telok Ayer Street Singapore 068589
phone: +6563034614
website: http://www.asiabizservices.com/
About
AsiaBiz is a company that provides Singapore Company Registration services to local and foreign entrepreneurs and investors and offer consultation regarding the immigration and taxation law, accounting and book keeping requirements, and other compliance matters stated under the Singapore law.
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