Representative office is a dependent unit of the enterprise, having the task of representing by authorization for the interests of the enterprise and protecting the interests of the parent company.
Representative offices do not perform business functions in the lines of business listed in the parent company’s business registration, so the representative office is not subject to tax obligations as prescribed by law. Representative offices can be established in the same province or in different provinces with the parent company’s main address.
Thus, in case an enterprise wants to establish more dependent units with only the representative function and does not perform business functions, the enterprise may consider the option of establishing a representative office to avoid having to Complicated tax returns.