What Is a Representative Office and Who Needs One?
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
Step 1: Jurisdiction Selection
Swiss Global Corporate Services helps identify the best location based on your goals (e.g., UAE, Singapore, EU countries).
Step 2: Document Preparation
We assist in compiling necessary documents:
- Certificate of Incorporation of the parent company
- Board Resolution approving the setup
- Power of Attorney
- Passport copies of authorized representatives
Step 3: Licensing and Approval
We submit the application to the relevant authorities, including:
- Ministry of Economy or equivalent
- Local Department of Economic Development
Step 4: 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.