| In some cases, it is better to conduct a market | | | | lease warehousing facilities, and lease offices to other |
| research first before engaging in a full business | | | | establishments for a fee. |
| operation especially if a company will operate in a | | | | In addition, a representative office is not allowed to |
| speculative, but still promising market. | | | | carry out activities that will involve shipping and |
| For foreign companies wanting to explore the | | | | storing goods in Singapore. And with this, a parent |
| business opportunities in Singapore, the best way | | | | company should appoint a local distributor or agent |
| they can do is to register a representative office | | | | who will perform such activities that are commercial |
| which is a setup designed for conducting market | | | | in nature. |
| research and other non-commercial activities. | | | | To register a representative office in Singapore, |
| These are the activities a representative office can | | | | foreign companies should hire a professional |
| legally engage to: | | | | registration firm that will process their application to |
| * Conduct market research and feasible studies that | | | | the International Enterprise. But if the parent |
| will determine the likelihood of success of a certain | | | | companies will operate in the banking and insurance |
| product or service in Singapore. | | | | sector, it is also a requirement to register their office |
| * Provide liaison services on behalf of its foreign | | | | to the Monetary Authority of Singapore. |
| parent company as long as it will not enter into a | | | | In case that foreign companies wish to carry on their |
| legal agreement or contract. | | | | operations in the country after their representative |
| * Provide customer care assistance as long as this will | | | | office has expired, they are advised to register a |
| not involve anything related to repairs and services. | | | | branch office or subsidiary company which are the |
| * Oversee the activities of the parent company's | | | | two business structures allowed to conduct |
| local distributors and agents in the country. | | | | commercial activities. |
| It is important to note that a representative office is | | | | For most experts, a subsidiary company is better |
| not allowed to engage in commercial and | | | | than the branch office since it enjoys local tax |
| profit-generating activities, provide service in | | | | benefits and exemptions being incorporated in the |
| exchange of fees, enter in to any business contracts, | | | | country. |
| issue invoices and receipts, trade goods and services, | | | | |