What Is a Representative Office and Who Needs One?

If you’re looking to establish a presence in a new market without engaging in commercial activity, a representative officemay be the ideal solution. It allows foreign companies to explore business opportunities, build local relationships, and conduct non-transactional operations — all while maintaining legal and brand presence in a foreign country.

In this article, we explain what this structure is, who it’s designed for, and how to set one up with expert support from Swiss Global Corporate Services.

What Is a Representative Office: Definition and Purpose

A representative office is a legal entity established by a foreign company in a new country for the purpose of non-commercial activities such as:

Market research
Liaison with local partners or government agencies
Brand promotion
Supervision of suppliers or distributors

It does not have the right to:

Sell goods or services directly
Sign commercial contracts
Generate revenue

In essence, this type of entity is a gateway to new markets, used for brand visibility, market testing, and strategic positioning.

Who Needs a Representative Office?

A representative office is best suited for:

Companies exploring new markets before full entry
Firms needing local visibility without immediate sales
Businesses wanting to study competitors, demand, or regulations
Brands promoting presence at events, expos, or with media

It’s particularly useful in jurisdictions like the UAE, China, and certain EU countries where direct commercial activity has high regulatory thresholds.

Key Benefits of a Representative Office

Low operational cost – No corporate tax or local VAT obligations
Simple legal structure – Fewer licensing and compliance steps
Local market insight – Gain access to cultural and business environments
Brand recognition – Build a visible presence without commercial risk
Strategic flexibility – Easy to convert into a branch or LLC later

How to Set Up a Representative Office: Step-by-Step Guide

Jurisdiction Selection

Swiss Global Corporate Services helps identify the best location based on your goals (e.g., UAE, Singapore, EU countries).

Document Preparation

We assist in compiling necessary documents.

Licensing and Approval

We submit the application to the relevant authorities, including:

Ministry of Economy or equivalent
Local Department of Economic Development

Registration and Setup

Once approved, your representative office receives:

Office registration certificate
Employee visas (if applicable)
Office lease setup assistance
Corporate bank account support – We assist in preparing documents and managing communication with selected banks

Why Choose Swiss Global Corporate Services to Open a Representative Office?

Experience across 20+ jurisdictions
End-to-end support: legal, licensing, compliance, banking, and relocation
Multilingual consultants with local expertise
Transparent pricing and confidential service

Ready to Establish a Representative Office?

Now that you understand how a representative office works, it’s time to take action. Let Swiss Global Corporate Services help you launch your international presence with strategic clarity and full compliance.

Contact us today to begin your setup with confidence — including legal structure, licensing, and bank account opening.