Legal Type
Not a separate legal entity but an extension of the parent company
Separate legal entity distinct from its parent company
Has no legal status but just a temporary administrative arrangement
Liabilities
Liabilities extend to parent company
Liabilities limited to subsidiary
Entity Name
Must be the same as the parent company
Can be the same or different from parent company
Must be the same as parent company plus must include ‘Representative Office’
Allowed Activities
Can only conduct market research or feasibility studies
Validity Period
Registered forever until closed
Has to be renewed every year with a 3 year maximum
Taxation
Taxed as non-resident entity, local tax benefits not available
Taxed as Singapore resident entity, local tax benefits available
N/A as Rep Office cannot generate income
Annual Filing
Must file branch office as well as parent company’s accounts
Must file accounts of the Singapore subsidiary
N/A
Bank Account
Can open bank account in Singapore
Can open bank account in Singapore to run the cost centre operations. Must be funded by the parent company.
Staff Hiring
No restrictions on hiring local or foreign staff
Chief representative must be a staff member from the parent company. Can have only five employees.
Appointment of Officers
Must appoint at least two locally resident persons
Must appoint at least one local resident director
Must appoint a Chief Representative who will relocate from headquarters