ECCT SME-Centre

The main considerations will be the nature/type of your business, whether you intend to invest in the PRC, and tax. For example, after-tax profits of a branch office unlike those of a subsidiary may be repatriated to the parent company without additional taxation or withholding taxes being applied.

Another example, a representative office will be legally limited as to what activities it may carry out in Taiwan. It can only represent the parent company in Taiwan - promotional and marketing activities, sign contracts on behalf of the foreign company, provide quotations, undertake price negotiations, submit bids and tenders, arrange to procure products for the parent, and collect business information – a representative office cannot, however, conduct actual business in the local market.