The purpose of the establishment of a representative office is that of conducting market research. This market research is generally intended to assist the foreign parent company with which the representative office is affiliated by providing it with important information.
A representative office is an office which serves as an extension of a foreign company. Representative offices are established for the purpose of market research so as to allow a foreign business owner to acquire a greater understanding of the Singaporean consumer market. Business owners who do not believe that they are ready to commit to setting up a full-scale company in Singapore therefore usually choose to set up a representative office.
There are several types of market research or feasibility studies which may be conducted by representative offices in Singapore. Each of these has specific purposes which ultimately contribute to the growth and success of the foreign company with which the representative office is affiliated.
Market Research on Market, Customers, and Clients
It is always important for any business owner to become familiar with the market in which business activities are to be conducted. Many foreign business owners who are entering Singapore for the first time might not fully understand the demands and desires of the Singapore consumer market. For this reason, it is important for these owners to receive all of the information about the market in Singapore which they possibly can. One way that they may do so is through the establishment of a representative office. According to Singaporean business laws, representative offices are allowed to conduct market research in order to allow those associated with the foreign parent company to ascertain the most appropriate and profitable methods of conducting business in Singapore. Doing so would allow the company to gain much understanding about optimal business practices in Singapore and thus establish its presence there in a positive manner.
Market Research on Establishment of a Business in Singapore
Company establishment and incorporation procedures differ from country to country. This is because every country has specific laws and regulations which govern how a company is to be established there; such laws are tailored to suit the specific business conditions which exist in each country. In this regard, Singapore is no different. Foreign business owners who are uncertain about the procedures of business establishment in Singapore might therefore opt to use a representative office in order to learn more about how businesses in Singapore are to be established as well as determine if current business conditions in Singapore, specifically in the industry of which the parent company is a part, are suitable for the establishment of a new business or a branch of the representative office’s foreign parent company.
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Participation in Trade Shows and Exhibitions
Trade shows and exhibitions play important roles in the business landscape of any country. They provide business owners with ideas which could be used to enhance the quality of their products, allow business owners to network with other business owners within the same industry, and supply ideas which could be used by business owners to generate additional profits and revenue for their business. Participation in exhibitions and trade shows is defined as a form of market research; therefore, representative office owners in Singapore are allowed to do so. By participating in exhibitions and trade shows, the owners of representative offices are likely to use the information which they have learned to make their business more viable and successful. Doing so will also make the establishment of a branch of the parent company in Singapore more likely.
It has therefore been conclusively proven that the market research conducted by a representative office brings about many benefits. Therefore, if you are in a position to do so, it may be in your best interest to start one. For this, we at Paul Hype Page & Co can be of assistance to you. We will ensure that your representative office is established according to the incorporation laws of Singapore; once it has been established, you may proceed to conduct any of the forms of market research which have been described or even some which were not mentioned.