A Representative Office is a foreign corporation organized and existing under foreign laws, but physically located in the Philippines. It does not derive income from the host country and is fully subsidized by its head office. The Representative Office in the Philippines deals directly with clients of the parent company and undertakes such activities as information dissemination, product promotion for client companies, as well as quality control on products that are exported to other countries. The Representative Office is not allowed to offer its services to third parties. It is not subject to income tax since it is not allowed to generate any income from the services that it offers in the Philippines. The representative office is also ineligible for PEZA and BOI Registration.
Listed below are the requirements for setting up a representative office in the Philippines: