ROs compliance in management

You will often see companies in the market today often have a number of representative offices in different localities that you always wonder how it operates. So what is a representative office? How important is the function of ROs compliance in management?

1. What is a representative office?

A representative office is a branch or facility of a company or organization, usually established in a locality or country other than the headquarters. The purpose of establishing a representative office is to expand or maintain the company’s presence in a specific region, while conducting business activities, supporting customers and managing local issues.

A representative office usually has certain functions and responsibilities, such as representing the company legally in that area, supporting customers, conducting local market research, maintaining contact with partners and the local community.

Representative offices play an important role in adapting and interacting with the local business environment.

2. Is the representative office allowed to issue invoices?

Representative offices usually do not have the right to issue invoices. Representative offices are not private entities or independent businesses, but are usually just branches or representatives of parent companies abroad. Therefore, issuing invoices is usually done by the parent company, not by the representative office in that country.

If there is a need to issue invoices, customers usually have to contact the parent company or the finance department of that company directly to carry out the relevant procedures. Depending on the specific regulations of each country and local laws, this process may vary.

3. Functions of Representative Offices

A representative office is an important base of operations in today’s global business model. With the mission of representing a company or organization in another locality, a representative office plays an important role in promoting presence, building relationships and developing business in a new market.

One of the important functions of a representative office is to create a trustworthy and close image for local customers and partners. By having a representative office, a company can build a solid front and increase credibility from business partners.

In addition, a representative office also helps to enhance the ability to communicate and interact directly with local customers. By having a meeting place, a company can directly contact customers, understand their needs and desires. This facilitates providing better services and building long-term relationships with customers.

Profile to establish representative office

>>>Read more: Assistance compliance management of ROs

4. Procedures for Establishing a Representative Office

The procedures for establishing a representative office may vary depending on the regulations of the country and region in which you want to establish a representative office. However, here are some common procedures that you may need to follow:

  • 4.1. Determine the type of representative office: First, you need to determine the type of representative office you want to establish, such as a sales representative office, a commercial representative office, or a product introduction representative office.
  • 4.2. Register the representative office name: You need to register the name of your representative office according to the regulations of the competent authority in the country or region in which you want to operate.
  • 4.3. Determine the office location and premises: You need to determine the office location and premises for your representative office. This may include renting an office or sharing a workspace.
  • 4.4. Register with the authorities: You may need to register your representative office with the authorities such as the Department of Planning and Investment, the Department of Trade, or similar. The registration procedure may require providing information about the company, legal documents, and information about the legal representative.
  • 4.5. Submit the necessary documents and records: You need to prepare and submit the necessary documents and records, such as business registration, operating license, notarized copies of relevant documents, and documents confirming the company’s finances.
  • 4.6. Complete tax procedures: You may need to register with the tax authorities and complete tax procedures related to your representative office activities.

5. Deadline for Submission of Representative Office Activity Report

Before January 30 of each year, the Representative Office shall be responsible for sending a report in the form of the Ministry of Industry and Trade on its activities in the previous year by post to the Licensing Authority. The Representative Office shall be obliged to report, provide documents or explain issues related to its activities at the request of the competent state management agency.

The above procedures are only a general guide and may vary depending on the regulations of each country or region. To ensure full compliance with regulations and procedures, you should seek specific information from the appropriate authorities and experts. Deciding whether to use a representative office or not depends on your business’s specific strategy and goals.

Hopefully, this article has provided very detailed information about representative offices and their functions. If you have any further questions or need more information on any other topic, do not hesitate to ask. S4B Vietnam will try to support you!

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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