Representation Office

Representation Office

Representation Office (RO) is also known as a Place of Business, a Liaison Office or a Bureau De Liaison. It is an effective device for parent companies to carry out their non-core activities of its business overseas.

Parent companies can obtain local-country registration and operate via a Representation Office. Usually, Representation Offices do not pay corporate taxes - China being a notable exception because of the deemed grossing up income calculation. For this reason, it is very important to ensure that the job titles, job description, and the remuneration structure for your local employee are consistent with allowable activities in a Representation Office.

A Representation Office is generally less expensive, and quick to set up and shut down. However prudence needs to be exercised to ensure a Representation Office is appropriate for your business scenario.