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Learn more about Representative Office in Australia

A representative office is a type of business establishment that serves as a liaison office for a foreign company in a host country. Unlike a branch office or subsidiary, a representative office typically cannot engage in commercial activities such as sales or signing contracts. Instead, its primary function is to represent the interests of the parent company, conduct market research, and facilitate communication with local partners or customers.Our easy-to-edit templates streamline the document preparation process, ensuring that you have professionally crafted documents at your fingertips, ready to be customized to your unique needs.

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Table of contents

    1. What are the purpose of a representative office?
    2. How to set up a representative office in Australia?
    3. What are the documents required to set it up in Australia?
    4. What are the restrictions on the activities that a RO can engage in?
    5. What are the responsibilities of the representative appointed to a RO in Australia?
    6. Are there any reporting requirements for representative offices?
    7. How does a RO differ from other foreign business entities in Australia?
    8. What are the advantages of setting up a RO for foreign companies in Australia?

What are the purpose of a representative office?

A Representative Office serves as a liaison and promotional office for foreign companies seeking to explore business opportunities in Australia. Its main purposes include market research, marketing, and building relationships with potential clients, partners, and stakeholders.

How to set up a representative office in Australia?

To set up a Representative Office in Australia, foreign companies typically need to:

➤ Register the RO with the Australian Securities and Investments Commission (ASIC).
➤ Obtain necessary licenses or permits, if applicable.
➤ Appoint a local representative to manage the RO's activities.
➤ Comply with Australian regulations and tax requirements.

What are the documents required to set it up in Australia?

The documents required to set up a Representative Office in Australia may include:

1. Application form for registration with ASIC.

2. Certified copies of the company’s constitutional documents.

3. Appointment letter for the local representative.

4. Proof of the company’s legal existence and good standing.

ℹ️ It is important to note that additional documents may be required depending on the specific circumstances of the RO.

What are the restrictions on the activities that a RO can engage in?

Representative Offices in Australia are generally restricted from engaging in profit-generating activities, such as entering into contracts, conducting sales, or providing services for profit. They are limited to non-commercial activities such as market research, promotion, and liaison activities.

What are the responsibilities of the representative appointed to a RO in Australia?

The representative appointed to a RO in Australia is responsible for:

1. Managing the day-to-day operations of the RO.

2. Liaising with local authorities, partners, and stakeholders.

3. Conducting market research and promotional activities.

4. Ensuring compliance with Australian laws and regulations.

Are there any reporting requirements for representative offices?

Representative Offices in Australia may be required to submit periodic reports to regulatory authorities, such as ASIC or the Australian Taxation Office (ATO). These reports may include financial statements, activity reports, and updates on the RO’s operations.

How does a RO differ from other foreign business entities in Australia?

Unlike other foreign business entities such as branches or subsidiaries, Representative Offices are generally not permitted to engage in profit-generating activities or enter into contracts on behalf of the foreign company. They serve primarily as liaison and promotional offices.

What are the advantages of setting up a RO for foreign companies?

Setting up a Representative Office in Australia can provide foreign companies with several advantages, including:

1. Establishing a local presence and brand awareness in the Australian market.

2. Conducting market research and feasibility studies.

3. Building relationships with potential clients, partners, and stakeholders.

4. Gaining insights into local business practices, regulations, and market trends.

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