Branch / Representative Office
A local presence that is an extension of the parent
Definition
A branch extends the parent without separate legal personality; a representative office is usually limited to liaison and market research.
Suited for
- Early market research and liaison
- Project-based work
Common legal structures
- Foreign company branch
- Representative / liaison office
Preparation
- Check whether a branch is allowed for the activity
- Appoint a local authorised representative
Limitations
- Representative offices usually cannot sell or invoice
- The parent is liable for branch obligations
Tax notes
- Branches are generally taxed on local-source income
- Profit remittance may be subject to branch profits tax
Key risks
- Direct exposure of the parent
- Operating beyond the licensed scope
Steps
- 1Choose office type
- 2Prepare parent documents
- 3Register locally
- 4Register for tax
- 5Open accounts