5. Other Types of Corporate Vehicle
5.1 Representative Office
A representative office may beestablished to deal directly with the clients of its
parent company in the Philippines and toundertake activities, including, but not
limited to, information dissemination and promotion of the company’s products
as well as quality control. A representative office may not derive income in the
Philippines and is fully subsidized by its head office.
A representative office must have an initial inward remittance of US $30,000 to fund
its operations.
5.2 Regional or Area Headquarters
A multinational company may establish a regional or area headquarters in the
Philippines to serve as supervision,communications, or coordination center
for its subsidiaries, branches, or affiliates in the Asia Pacific region.
The regional or area headquarters may not earn or derive income in the
Philippines. It may not participate,in any manner, in managing any
subsidiary or branch office it may have in the Philippines; neither may it
solicit or market goods or services, whether on behalf of its parent company
or its branches, affiliates, subsidiaries, or any other company.
Its expenses must be financed by the headoffice or parent company from external
sources in an acceptable foreign currency. To fund its operations in the
Philippines, its head office or parent company must initially remit into the
Philippines at least US $50,000 and thereafter US $50,000 annually.