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Preparation of Corporate Documents

for Representative Offices


A representative office (RO) of a US company in foreign countries does not constitute a separate company, but is merely a detached subdivision of their head office. These offices serve as a liaison between the parent company and its clients in the Foreign Countries. They may develop relationships with prospective clients, but cannot conduct any business transactions themselves.
The underlying commercial reasons may include the following:
  • An RO may be more appropriate for a new entrant to understand and test the local market situation before the foreign investor decides whether to pursue long-term direct investments.
  • A foreign investor may not need a trading or manufacturing in the overseas country in the near future. Therefore, a marketing and liaison office may be sufficient.
  • It is common practice that if an RO only carries out liaison and promotional activities for its head office, such activities are normally exempt from corporate income tax in the guest country.
  • There may be minimum capital requirements and local participation rules for a foreign invested subsidiary, but these are not applicable for an RO.
Practices of registration for an RO in foreign countries still differ significantly from government to government. Each country blends its own recipe of traditional practices and international treaties, national laws and local regulations.
By using our services you have already taken the first step towards efficient and absolutely painless preparation of your documents for any foreign country.
If you need our help, please, contact us and our experts will make sure that you and your business can operate from "day one" in any foreign country.
 




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