What is a representative office Philippines?

What does a representative office do?

A representative office is an office established by a company or a legal entity to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted.

How do I set up a representative office in the Philippines?

Requirements for Representative Office Registration in the Philippines

  1. Form F-104.
  2. Name verification slip.
  3. Authenticated copy of the board resolution authorizing the establishment of the office, designating the resident agent, and stipulating that in the absence of the agent summons may be served to the SEC.

Is representative office a branch?

Generally, companies have three options when they want to enter a foreign market: a representative office, a branch office and a subsidiary. … A branch office, on the other hand, is a direct extension of the parent company and can engage in core activities like sales and contracts.

How do I set up a Representatives office?

The requirements to set up a representative office are as follows:

  1. Secure a name reservation at the Securities and Exchange Commission. …
  2. Provide all the necessary documents to the SEC for processing the name registration.
  3. Present verification of minimum paid-up capital in a non-resident account from a local bank.
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Is representative office a legal entity?

What is a Representative Office (RO)? A Representative Office (RO) is essentially a temporary administrative office set up as a liaison to coordinate and manage non-commercial activities, for a foreign company. An RO has no legal status and is not a separate legal entity from its parent company.

Is a representative office a permanent establishment?

A representative office is a temporary facility that allows foreign companies to assess the viability of doing business in Singapore. Such an office can be created before setting up a permanent establishment in the country. A representative office has no legal status and cannot conduct any commercial activity.

Can a representative office open a bank account in the Philippines?

From the point of view of taxation, the foreign corporation, upon obtaining a license to do business through a branch office, becomes a resident foreign corporation. … However, most banks require Philippine Pesos: Twenty-Five to Fifty Thousand (PhP25,000.00 – PhP50,000.00) to open a corporate bank account.

What is ROHQ?

(3) Regional Operating Headquarters (ROHQ) shall mean a foreign business entity which is allowed to derive income in the Philippines by performing qualifying services to its affiliates, subsidiaries or branches in the Philippines, in the Asia-Pacific Region and in other foreign markets.

What is a foreign corporation in the Philippines?

A foreign corporation is corporation organized, authorized, or existing under the laws of any foreign country4 A foreign corporation is either a resident – a corporation engaged in trade or business in the Philippines5, or a non-resident – a corporation not engaged in trade or business in the Philippines6.

Is a representative office a PE?

In most countries, in order to recognize a PE — or a taxable presence — the revenue-generating entity needs to be formally registered under some corporate identity, typically a branch, representative office or subsidiary. … While such tests vary by country, the following are generally speaking indicators of a PE.

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Can a representative office have employees?

Since a representative office cannot be involved in commercial activities, the staff strength should be reasonable and kept to the essential minimum. The authorities have stipulated that a representative office can hire only up-to a maximum of five employees.

Can a representative office hire employees?

Representative offices may also hire employees, both local and foreign.