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Rep.Office
 

A representative office provides business segments with local bases for marketing, liaison and client service. They are restricted in their activities in many ways. A rep. office or an agent.

¨ç is a person acting on behalf of a foreign corporation
¨è is not an official form of organization.
¨é should have corporate ID number and employer¡¯s tax ID number¡¯.
¨ê is obliged to pay annual franchise tax and corporate initiation fee.
¨ë provides informational and promotional services.
¨ì carries out marketing research and deals with business order and customers.
¨í is not allowed to sell goods, make inventory and agree on contracts.
¨î may purchase or lease space, own or use equipment and may open bank accounts.
 
Branch
 

A branch is an administrative division of some larger or more complex organization.

¨ç It is a foreign corporation doing business in the US.
¨è Most of the State corporate law is applicable.
¨é Liability reaches branch¡¯s head office.
¨ê Branch has tax liability.
¨ë Funds and personnel of a branch are transferable.
¨ì To form a branch, the trade name needs to be checked.
¨í Statement and designation need to be supported by ¡®Certificate of Good Standing¡¯ and must be filed.
 
Subsidiary
 

A Subsidiary is a company controlled by another usually a large corporation.? Subsidiaries are distinct legal entities for purposes of taxation and other forms of regulation.

¨ç Subsidiary is an independent corporation established under State law.
¨è Subsidiary has several liability from the parent corporation.
¨é Subsidiary can be owned by an individual or a corporation.
¨ê Corporations law and securities law are applicable.
¨ë Subsidiary can branch in multiple States.
¨ì Subsidiary can receive consolidated tax return benefits.
¨í Transfer of fund can be withheld.
¨î Subsidiary is not protected by corporate veil.
¨ï There are no limitations on subsidiary¡¯s capital in most States.
 
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