Aug 27 2012
Representative office is set up by a foreign company to engage in business liaison in the selected country/jurisdiction or to enable clients to visit an domestic office where the main office is abroad.
However, it is not allowed for the office to be directly involved in operational activities. In general, a representative office can be established before an company formation, as the first step to enter local market and test the business environment in that particular country/jurisdiction.
Representative offices are usually easier to establish than a branch or subsidiary, as they are not used for actual “business” (e.g. sales) and therefore there is less incentive for them to be regulated.
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