Singapore’s reputation as a global business hub continues to attract foreign companies seeking to establish a foothold in Asia. While company incorporation in Singapore for foreigners is a popular route for those ready to operate fully, not every business wants to commit immediately to full-scale operations.
For many, the best way to “test the waters” is by setting up a Representative Office (RO) — a temporary structure that allows foreign firms to explore the Singapore market without engaging in commercial activities.
In this 2025 updated guide, we explain everything foreign businesses need to know about setting up a Representative Office in Singapore — from eligibility and registration procedures to key restrictions, renewal requirements, and how to eventually transition into a full-fledged business entity.
What Is a Representative Office (RO)?
A Representative Office is a temporary administrative office established by a foreign company to conduct market research, business development, and liaison activities in Singapore.
Importantly, an RO cannot engage in any profit-generating or commercial activities. Instead, it acts as a bridge between the parent company and potential local partners, helping the business understand market dynamics before committing to a permanent presence.
It’s an ideal option for foreign firms that want to:
- Assess Singapore’s business potential before investing heavily.
- Conduct feasibility studies and market surveys.
- Build relationships with suppliers, distributors, or clients.
- Promote brand awareness without direct sales.
Key Features and Limitations
The Representative Office from the manufacturing, international trading, wholesale, trade, and trade-related business sectors is governed by Enterprise Singapore, which regulates its registration and annual renewal.
| Aspect | Description |
| Legal Status | Not a separate legal entity; considered an extension of the foreign parent company. |
| Business Activities | Limited to market research, liaison, and promotional activities. |
| Profit Generation | Strictly prohibited — cannot issue invoices, sign contracts, or engage in trade. |
| Staffing | Limited to 5 employees, including 1 Chief Representative. |
| Duration | Valid for 1 year; renewable annually, up to a maximum of 3 years. |
| Regulatory Authority | Enterprise Singapore. |
If the company wishes to engage in sales or commercial operations later, it must convert into a subsidiary or branch office.
Foreign entities in specific sectors should contact the relevant regulatory authorities for guidance on setting up a Representative Office (RO) in Singapore:
- Banking, finance, financial exchanges, and insurance: Reach out to the Monetary Authority of Singapore (MAS).
- Foreign law practices: Contact the Ministry of Law (MinLaw) for sector-specific requirements.
Eligibility Criteria for Setting Up a Representative Office
To qualify for registration, a foreign company must meet the following eligibility requirements set by Enterprise Singapore:
- The parent company must be established for at least 3 years.
- Annual sales turnover of the parent company must be at least USD 250,000.
- Proposed activities in Singapore must be non-commercial and purely for market research or liaison purposes.
- A maximum of 5 staff can be employed under the RO.
- All foreign entities are required to obtain a CorpPass account before submitting their Representative Office (RO) application. The appointed CorpPass Administrator must hold a valid NRIC or FIN number.
- If your company does not have any staff with an NRIC or FIN, you must appoint a local third-party proxy—such as a registered corporate service provider—to submit the RO application on your behalf.
This ensures that only legitimate, established businesses use the RO as a soft-entry approach into Singapore’s market.
Permitted and Prohibited Activities
Permitted Activities
- Conducting market research or feasibility studies.
- Liaising with existing or potential customers or partners.
- Coordinating promotional and brand awareness campaigns.
- Collecting information on industry trends, regulations, and competition.
Prohibited Activities
- Signing contracts or negotiating sales agreements.
- Issuing invoices or accepting payments.
- Providing consultancy or other fee-based services.
- Importing, exporting, or trading goods directly.
- Leasing property or assets for business operations.
Engaging in prohibited activities may lead to deregistration of the Representative Office and potential penalties for non-compliance.
Documents Required for Registration
When applying for a Representative Office (RO), the following documents must be submitted to Enterprise Singapore:
- A certified copy of the parent company’s Certificate of Incorporation or Registration.
- The latest audited financial statements of the parent company.
- A written statement on the purpose of establishing the RO, detailing the activities to be conducted in Singapore, prepared on the parent company’s official letterhead, and signed by an authorized representative of the parent organization.
- A passport copy of the nominated CorpPass Administrator (or Chief Representative, if applicable).
- A completed RO application form via Enterprise Singapore’s online portal.
Note: All documents not in English must be translated and certified by an official translator.
Step-by-Step Process for Setting Up a Representative Office
Step 1: Assess Eligibility
Ensure your company meets the criteria — particularly the 3-year establishment period and USD 250,000 minimum turnover.
Step 2: Prepare Documentation
Gather the necessary corporate documents and ensure all translations and certifications are in order before submission.
Step 3: Submit Application to Enterprise Singapore
Applications must be filed through Enterprise Singapore’s online portal. The standard processing time is 5–7 working days, depending on document completeness.
Step 4: Appoint a Chief Representative
Each RO must have a Chief Representative, who may be a foreign employee from the parent company. This person is responsible for overseeing operations, compliance, and annual renewals.
Step 5: Register for Office Premises
You can lease a small office space or use a virtual office address in Singapore to meet correspondence and administrative requirements.
Step 6: Commence Market Research Activities
Once approved, your RO can start conducting research and liaising with potential partners within the permitted scope.
Step 7: Annual Renewal
The RO registration must be renewed every year with Enterprise Singapore. You’ll need to submit an Annual Report summarizing your research activities and staff details.
An RO can operate for a maximum of 3 years, after which it must be converted into a Branch or Subsidiary to continue operations.
After 3 Years: What Happens Next?
Since a Representative Office is temporary, it’s typically used as a stepping stone to establishing a more permanent presence in Singapore. Companies have two main options:
1. Convert to a Branch Office
- A branch office in Singapore acts as an extension of the parent company.
- Can conduct the same business activities as the head office.
- Liabilities remain with the parent company.
2. Incorporate a Subsidiary Company
- A locally incorporated private limited company.
- Separate legal entity, meaning limited liability.
- Eligible for tax incentives and benefits for local companies.
Most foreign firms eventually choose to incorporate a subsidiary, as it provides more flexibility, local credibility, and access to Singapore’s pro-business tax regime.
Advantages of Setting Up a Representative Office in Singapore
1. Low-Risk Entry Point
A Representative Office (RO) provides an excellent opportunity for foreign businesses to explore Singapore’s market without heavy financial commitments or regulatory complexities. Since the RO is not allowed to engage in commercial transactions, it shields the parent company from operational risks such as tax liabilities, contractual obligations, or compliance breaches. This makes it a cost-effective and low-risk option for companies that want to assess market demand, study competitors, and evaluate Singapore’s business ecosystem before deciding on a long-term investment.
2. Simplified Setup Process
Unlike incorporating a company in Singapore or registering a branch, setting up an RO in Singapore is a streamlined process with fewer compliance requirements. There is no need for paid-up capital, local directors, or complex annual filings. Once eligibility criteria are met and documents are submitted, approval from Enterprise Singapore typically takes only a few working days. Annual renewals are simple as well, requiring only a brief report of the RO’s activities. This simplicity allows businesses to focus on research and relationship-building rather than administrative paperwork.
3. Brand Visibility in Asia
A Singapore Representative Office helps foreign companies establish brand presence and credibility in one of Asia’s most trusted business environments. By setting up an office in Singapore, companies gain a local address, which can be used for correspondence and meetings with potential partners, clients, and distributors. This helps build trust and visibility in the region, especially among ASEAN markets, where Singapore is viewed as a gateway for expansion. Even without commercial activities, being physically present in Singapore gives your brand a competitive edge and local recognition.
4. Strategic Market Insights
One of the main purposes of an RO is to conduct market research and data collection. Through these studies, companies can gather valuable insights on customer preferences, industry trends, pricing models, and regulatory frameworks. This information helps shape informed business strategies and identify potential barriers before full entry. By understanding local demand and competition, foreign firms can make smarter decisions when structuring their eventual branch or subsidiary. In essence, the RO acts as a strategic intelligence hub for market exploration.
5. Foundation for Expansion
Once a company confirms the feasibility and potential of operating in Singapore, the Representative Office can serve as a stepping stone toward establishing a more permanent structure, such as a branch office or subsidiary company. The groundwork laid during the RO phase—such as market knowledge, business connections, and brand awareness—makes the transition smoother and faster. This staged approach allows companies to scale up operations confidently, with lower risk and better preparation for long-term success in the region.
Common Pitfalls to Avoid
While the process seems simple, many companies make mistakes, such as:
- Submitting incomplete or uncertified documents.
- Failing to renew the registration on time.
- Engaging in unauthorized business activities which may lead to deregistration.
- Not maintaining proper records of market research or staff details.
Partnering with a corporate service provider in Singapore helps prevent these errors and ensures a compliant, stress-free setup.
Representative Office vs. Branch vs. Subsidiary: Key Comparison
| Feature | Representative Office | Branch Office | Subsidiary Company |
| Legal Status | Not a legal entity | Extension of the parent company | Separate legal entity |
| Business Activities | Market research only | Same as the parent company | Full range of business |
| Taxation | Not taxable | Non-resident tax rate | Resident tax rate (eligible for incentives) |
| Liability | Parent company liable | Parent company liable | Limited to share capital |
| Duration | Up to 3 years | Indefinite | Indefinite |
Conclusion: Simplify Your Market Entry with HeySara
Setting up a Representative Office in Singapore is an excellent first step for foreign companies aiming to understand the market before launching full-scale operations. While the structure is temporary and non-commercial, it provides invaluable insights that can guide long-term expansion plans.
However, ensuring that your application meets all requirements — from eligibility and documentation to annual renewals — can be challenging without local expertise.
That’s where HeySara can help. As a trusted corporate service provider and corporate secretary in Singapore, HeySara assists foreign companies with Representative Office registration, compliance management, renewals, and entity conversion when the time is right.
Get started with HeySara today and make your entry into Singapore smooth, compliant, and stress-free.
Frequently Asked Questions (FAQs) About Singapore Representative Office
1. Can a Representative Office hire more than five employees?
No. A Representative Office (RO) in Singapore can employ a maximum of five staff members, including the Chief Representative or nominated CorpPass Administrator. If your operations require more manpower or business expansion, you’ll need to transition your RO into a subsidiary or branch office.
2. How long does it take to get RO approval?
Once the application and supporting documents are submitted, Enterprise Singapore typically processes the approval within 5 to 7 working days. However, delays may occur if clarifications or additional documentation are required.
3. Can a Representative Office open a corporate bank account?
While ROs cannot open commercial accounts for revenue-generating purposes, they may open a local bank account to manage administrative or operational expenses—subject to the bank’s internal policies.
4. Are there any annual reporting requirements for an RO?
Yes. Every Representative Office must submit an annual activity report to Enterprise Singapore during renewal. This report should outline the RO’s staff details, market research efforts, and key findings within the financial year.
5. What happens if the RO engages in prohibited activities?
ROs are strictly prohibited from engaging in profit-making, trading, or any contractual business activities. Doing so may result in deregistration or penalties imposed by Enterprise Singapore. Companies that wish to carry out such operations should consider company incorporation for foreigners instead.
6. Can a Representative Office lease office space in Singapore?
Yes. An RO can lease office space for administrative purposes, such as for its research or liaison activities. However, it cannot lease commercial property for conducting sales, trading, or service delivery.
