Singapore -- (SBWire) -- 11/11/2010 -- For foreigners, the best way to understand why Singapore is considered the the best investment hub to grow their business is to experience it first hand.
“First, they decide which type of establishment foreigners may want to set up,” beams Rikvin, a firm that provides professional business services to foreigners in starting a company in Singapore and which has been the guest of honor in today’s discussion.
“Among the choices are a representative office, a subsidiary, or a branch, depending on their needs.”
A representative is temporary. Its main function is to conduct a market research to help a business investor decide the best niche for his business.
“The longest that a representative office can stay is 3 years,” adds Rikvins, “and within that span of time, the staff must have assessed the business opportunities for them.”
After that, an investor must move forward to developing the office into a full-blown company or close it and go back to their native land.
“Nonetheless, it is a rare case for a representative office to dissolve in Singapore as it is Asia’s best environment for doing business,” Rikvin continues, “on the other hand, they are prohibited from engaging in profit-yielding activities.”
Nor can a representative office enter into any contract, lease a warehouse or open a Letter of Credit.
For best results, most foreigners engage the services of business firms such as Rikvin in processing the Employment Pass and registering the office with the Company Registrar without the need to be physically present at the city-state until when everything is ready for its operation.
A branch office is suggestive of its title.
Rikvin, saying it must bear the name of its parent company, says that there should also be 2 staff members who can either be a resident of Singapore or foreign individuals who shall act as agents and support the branch’s administration.
In Singapore, a branch office is considered an extension of the parent company. Thus, it is not entitled to have a separate legal identity. In addition, its Memorandum and Articles of Association, which are mandatory, should contain the specific activities of the company and which must be directed by the parent company.
And just like in establishing a representative office, it is best to hire a company that shall carry out the necessary procedure as this saves time and financial resources. Included in employing the services of that company is the process for obtaining a working visa in case a foreign investor or its appointee wishes to relocate to Singapore.
Rikvin has something important to say of this.
“It makes doing business more precise, organized, and convenient knowing that they can stay offshore while everything, from registration of a business to its setup and processing of necessary work visas and business permits are accomplished by someone else in Singapore.”
It also hastens the approval of registration as business firms such as Rikvin are adept on the procedure.
Moving forward, a subsidiary company is an auxiliary unit of the parent company, but has a legal status separate from its parent. Here, the foreign individuals can own 100% of the company’s shareholding, while the subsidiary’s liability is limited to its value of shares ascribed to it.
Rikvin declares that in each distinct process of incorporating a company in Singapore, certain conditions must be met. For one thing, a sole proprietorship business must appoint a local manager. Both the subsidiary and the branch office should also appoint a local resident director, for another.
To elaborate, Rikvin further says, “The local manager and resident director must either be a Singaporean citizen, Permanent Resident or a Pass holder of an Employment, Entrepreneur, or Dependent.”
Nevertheless, for the sake of complying with such requirement, foreign individuals can employ the Nominee Director Service of a separate company like Rikvin.
“Rikvin can satisfy that requirement and it is legal,” says a representative of the company in conclusion, “in fact, it is found to be convenient among foreigners as it makes doing business in Singapore less complicated and more fruitful.”
Since 1998, Rikvin, the leading Singapore Company Solutions Specialist has been providing highly professional company incorporation services, both in attractive standard packages as well as customised services. Online incorporation being a hallmark service, other services of Rikvin include Singapore Offshore Incorporation, Singapore Sole Proprietor setup, EntrePass, Singapore Employment Pass, Personalised work Pass application, GST Registration, Accounting Services, Tax Planning & Consulting, and Business Plan Drafting.
Rikvin Pte Ltd
http://www.rikvin.com/
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436
Email: info@rikvin.com
Rikvin Provides Tips on How To Incorporate a Singapore Company
“It makes doing business more precise, organized, and convenient knowing that they can stay offshore while everything, from registration of a business to its setup and processing of necessary work visas and business permits are accomplished by someone else in Singapore.”