If you want to open a representative office in the USA, you can consult one of our company formation agents in the USA for support. In the following lines, you can find information about the opening of this structure and also about the responsibilities of a liaison office in the USA.
| Quick Facts | |
|---|---|
| The purpose of a liaison office in USA | Representation of a foreign company and its operation in the local business community |
|
What activities can you undertake with a liaison office in USA? |
– promoting the business with the help of marketing campaigns, – gathering information on the business sector of interest in USA, – being a contact point between the parent company and clients in USA |
|
How can a representative office be registered in USA? |
– presenting the Certificate of Incorporation, – appointing a liaison officer, – opening a bank account in USA |
| Can a liaison office in USA have commercial activities? (YES/NO) | NO |
| Contracting potential clients and partners (YES/NO) |
YES |
| Local agent required (YES/NO) |
YES |
| Attributes of a liaison officer |
– promotes the activities of the foreign business through a representative office in USA, – communicates with the parent company in terms of business aspects, – developing business contracts with potential customers from the local market |
| Bank account for a liaison office in USA |
Required for the financial operations of the representative office in USA |
| Minimum deposit |
Not solicited |
| The institution that authorizes the liaison office in USA | Business Trade Register |
| The costs of opening a representative office in USA |
The foreign company sustains the costs of opening a liaison office in USA. |
| Corporate tax for a liaison office in USA |
Not mentioned |
| Licensing requirement |
Not required |
| Time frame for opening a liaison office in USA |
A few days |
| Why choose our company formation agents in USA? |
We offer: – support for registration with the local authorities, – help with the paperwork and formalities, – affordable prices |
Table of Contents
Steps to open a representative office in the USA
To open a representative office in the USA, you will typically need to prepare and submit several documents. The specific requirements may vary depending on the state and local regulations, as well as the nature of your business. However, here is a general list of documents commonly required to set up a company in the USA:
- Application form: You will need to fill out an application form provided by the relevant authorities, which may vary depending on the state or city where you plan to establish the representative office.
- Business plan: A detailed business plan outlining the objectives, activities, and proposed operations of the representative office in the USA.
- Certificate of incorporation: A copy of the certificate of incorporation or registration of the parent company, issued by the relevant authority in the country of origin.
- Articles of Association or Memorandum of Association: Documentation outlining the legal structure and governing rules of the parent company.
- Proof of address: Evidence of the parent company’s registered address, such as a utility bill or lease agreement.
- Board resolution: A resolution from the board of directors of the parent company authorizing the establishment of the representative office in the USA.
- Appointment of a representative: Documentation appointing a representative or agent to act on behalf of the parent company in the USA, including details such as name, contact information, and powers granted.
- Letter of intent: A letter stating the intention to establish a representative office in the USA, signed by an authorized representative of the parent company.
- Passport copies: Copies of passports or other identification documents of the company’s directors, officers, and appointed representatives.
- Registration fees: Payment of applicable registration fees, which may vary depending on the jurisdiction and the type of business entity.
- Tax identification number: Application for a tax identification number (EIN) for the representative office, which is necessary for tax purposes and compliance with IRS regulations.
It’s important to note that this list is not exhaustive, and additional documents or requirements may be necessary depending on the specific circumstances and regulatory framework governing the establishment of representative offices in the USA. It’s advisable to consult with our company formation agents in the USA familiar with the local laws and regulations to ensure compliance and smooth establishment of the representative office.
What can you do with a liaison office in the USA?
A representative office in the USA (RO) is often the right structure for business owners who want to promote their activities in this territory. With a liaison office in the USA, you can get in touch with potential clients who might be interested in the services and products offered. Here is other information about the representative office in the USA and its activities:
- It can develop marketing and promotion activities.
- Testing and market research can be done with the help of the liaison office in the USA.
- It represents the business interests of a foreign company in the USA.
- Can connect the parent company with customers in the USA.
What is important to specify is the fact that a liaison office in the USA cannot have any commercial activities. We recommend that you contact one of our company formation agents in the USA to benefit from all the support in opening a representative office in the USA. Our agents can also help you start a business in the USA, successfully managing the formalities involved.
Below is an infographic about the features of a liaison office in the USA:
Who financially supports the liaison office in the USA?
A representative office in the USA cannot have commercial activities, and therefore, its marketing and promotion operations must be supported by the parent company. Thus, the costs involved for various marketing actions come under the attention of the respective company, which is represented in the USA.
You can also watch a video presentation about the reasons why a liaison office in the USA is a great business choice:
Liaison office vs. branch office in the USA
A liaison office and a branch office are both types of establishments that a foreign company may set up in the USA to conduct business, but they serve different purposes and have different legal implications.
Liaison office:
- A liaison office in the USA, also known as a representative office, is primarily established for the purpose of facilitating communication and promoting the interests of the parent company in the host country (USA).
- It serves as a communication channel between the parent company and potential clients, customers, or partners in the USA.
- Liaison offices in the USA typically do not engage in any commercial activity or generate revenue. They are limited to activities such as market research, gathering information, and promoting the parent company’s products or services.
- From a legal perspective, liaison offices usually have limited legal status in the host country and may not have the authority to enter into contracts or conduct business transactions.
- If you are interested in learning more about the activities of a liaison office, please get in touch with our company incorporation consultants in the USA.
Branch office:
- A branch office, on the other hand, is an extension of a foreign company that carries out commercial activities and conducts business operations in the USA.
- Unlike liaison offices, branch offices in the USA are permitted to engage in revenue-generating activities such as: sales, distribution, and providing services within the scope of the parent company’s business.
- Branch offices may have more legal autonomy and are often registered as separate entities in the USA, subject to compliance with local regulations and taxation laws.
- Branch offices can enter into contracts, open bank accounts, and conduct transactions on behalf of the parent company.
If you are planning to set up a branch office in the USA, the services of our agents are at your disposal. In summary, both liaison and branch offices allow foreign companies to establish a presence in the USA. The liaison offices are primarily for communication and representation purposes, whereas branch offices are operational entities that conduct business and generate revenue within the jurisdiction.
Domains in which representative offices can be registered in the USA
The financial-banking sector is one of the most accessed for opening a liaison office in the USA. On the other hand, those interested in company formation in the USA can expand their operations in sectors such as import and export, real estate, transport, insurance, etc.
Statistics about the USA economy
We invite you to read some recent statistical data about the US economy if you decide on doing business in one of the American states, through a representative office:
- In Q1 of 2023, the US GDP boosted at an annual rate of 1.3%.
- The real GDP grew by 2.6% in Q4 of 2022.
- On the other hand, the GDP in the USA grew in 46 states in Q4 of 2022, with a percentage change ranging from 7.0% in Texas to -4.3%, in South Dakota.
Our company formation specialists in the USA can also help you with opening different types of businesses. Looking to expand your business in the USA and interested in opening a company in Delaware? Note that setting up an LLC in Delaware is a popular choice for entrepreneurs due to the state’s flexible corporate laws.
If you are interested in learning about the whole procedure, our agents can help you. They can also offer you practical help with company formation in the USA. We strongly recommend you contact our company formation agents in the USA.