Philippine Branch Office
The Philippine branch office is an extension or branch of a foreign-owned corporation that performs some of the business functions of its head office from across the seas to the Philippines. As part of its parent company, Branch Offices follow the laws of the country where its company originated.
Philippine Representative Office (PRO)
The Philippine Representative Office is a local office of a foreign corporation that aims to build a corporate presence in the Philippines. It usually acts as a communication center, or handles information dissemination, product promotion, and quality control of the company’s products for export. A representative office is not permitted to earn income in the country and attributes all its operating expenses and liabilities to its parent company abroad. A representative office does not have a separate legal personality from its parent firm.
Philippine Regional Operating Headquarters (ROHQ)
A Philippine ROHQ is established to perform qualifying services to the multinational company’s affiliates, subsidiaries or branches in the Philippines, the Asia-Pacific region and other foreign markets. It is prohibited from offering its services to entities other than the foregoing. It is also prohibited, directly or indirectly, to solicit or market goods and services on behalf of the multinational company or any of its affiliates or subsidiaries. It is allowed to derive income from sources within the Philippines.
Philippine Regional Area Headquarters (RHQ)
A Philippine RHQ is established to supervise, communicate and coordinate a multinational company’s subsidiaries, affiliates and branches in the Asia-Pacific region. It is not allowed to do business or derive any income from sources within the Philippines. Its operations must be fully subsidized by way of inward remittances from its head office.