Representative office in banking

Representative office in banking Section 13A of the Representative office in banking Act governs the registration of Representative office in banking offices (Cap. 19).

A bank representative office can conduct liaison work, market research, and feasibility studies in Singapore, but it is not permitted to transact any business.

Establishing a bank representative office does not guarantee that the applicant will be granted a banking license in the future.

Before You Submit Your Application

Representative office in banking

Before submitting a formal application, applicants interested in opening a bank representative office should contact the MAS Representative office in Representative office in banking Department to discuss their plans.

Early discussion of registration requirements aids in the identification of difficulties that may affect the proposed application.

Send an email to be: registry@mas.gov.sg for more information or to schedule an appointment with the MAS Representative office in banking Department.

How to Make an Application

To apply, fill out the Representative Office Application (70.3 KB). Instructions are included in the form.

When completing your application form, all candidates must additionally include proof of payment of the application cost (e.g., payment advice, bank statement transaction data).

What is the cost of the application, and how do I pay it?

A non-refundable application fee of S$5,000 is required of all applicants. Please see Making Payments to MAS for payment options and the Reference Code to specify the payment method.

Time to Process All applications will be processed as soon as possible. If all information has been provided to MAS’ satisfaction and the application fee has been received in full, the processing time is normally one to two months. Each application’s processing time is determined by its specific conditions.

What is the purpose of a Representative Office?

A representative office is a business office that a company establishes in a foreign country or jurisdiction where the company does not yet have a licence to conduct marketing and other non-transactional operations. Representative offices are typically employed by firms to source items on foreign land.

Representative Office’s Importance

People often mix up branches and offices, yet they are different organizations. When a corporation builds a branch in a new location, it is permitted to engage in selling and buying items, signing contracts, delivering services, and constructing structures, but a representative office is not permitted to do so. However, establishing this office is easier for a firm than establishing a branch because they are not used for actual business, and hence countries have less motivation to control them. A branch office has far more authority to conduct business in a given area than a representative office. These offices are primarily used by firms in developed countries.

Representative Office as an Example

Representative office in banking

An American corporation establishes a branch in Ghana, Malaysia, or any other country. The office can only communicate with consumers and enter into contracts on behalf of its overseas parent, but it cannot acquire or sell items.

Statements for Representative Offices of Foreign Banks

A foreign bank wanting to open a representative office in Australia must first acquire the Governor’s or Deputy Governor’s written authorization.
For a foreign bank to use the word “bank” or its equivalent as part of its corporate name and maintain a representative office, consent is also required.
Permission to operate a representative office and use the term “bank” may be given subject to certain requirements, which may be changed, cancelled, or added to.
A foreign bank intending to open a representative office in Australia must meet minimal entrance requirements and adhere to specific operational rules imposed by the Australian government. As a result, the definition of Representative Office and its overview are now complete.
An applicant who wishes to open a representative office in Australia must meet the following requirements.

Convince the Reserve Bank of Australia that:

it is recognised as a bank by its own country’s legislation;
it is substantial and well-known;
it is subject to appropriate prudential supervision in its own country.
It has received approval from the supervisor of its home country to establish Australia has a representative office.

Supporting data for an application

An application will be required to submit the following information to the Reserve Bank in order to establish that it fits the aforementioned criteria:

Evidence of its status as a representative office in Representative office in banking under the laws of its home country (i.e., a copy of its Representative office in Representative office in banking licence or authority); ii. names of directors and substantial shareholders (direct and indirect), where these are not disclosed in the annual report; v. a description of the applicant’s main activities
necessary for and incidental to the operation of the Australian office; iv. Only the representative office should use the foreign bank’s name.
when used in conjunction with the term “representative office” This consists of Signage for the office, letterheads, advertisements, and business cards, among other things;

Conditions of applications:

Representative office in banking

The following conditions apply to the operation of international representative offices; Australia’s banks include:

A representative office’s activities must be limited to the conduct of business.
only liaison-related actions For example, conducting study into the
The Australian economy; interacting with the bank’s Australian customers; the providing accurate information on the bank’s products and services
Performing credit assessments and reports on Australian entities upon request for the financial institution;
The representative office may not engage in any type of Representative office in banking activity, including
such as: soliciting deposits; receiving deposits (this includes allowing public members to make deposits. the public can deposit funds into any account operated by a licensed financial institution
In the name of the representative, open a bank account in Australia.