Activities of a representative office Representative offices are primarily used for two activities that complement the business’s main functions:
Representing the parent company Managing information When representing the parent company, a representative office can enter into contracts on its behalf and communicate with local partners (e.g. organising meetings, sending information from the partners to the parent company, etc.).
Alps landscape with a building on a hill When managing information, a representative office can conduct market research, organise marketing campaigns and collect data from customers. It also serves as a point of contact between the head office and customers, if no other communication channels are available.
In general, a representative office is a way for a company to make an initial entry into an unfamiliar foreign market without incurring too much risk. This is because, in many jurisdictions, setting up a representative office is easier than opening a branch office — as representative offices cannot sell products or services, they are often less tightly regulated than other company types. Representative offices do not require as many resources (logistics networks, specialised sales staff, warehouses for goods) to perform their main tasks, and so in the event of failure, withdrawing from a given market is not overly costly.
Advantages of a representative office A representative office has several advantages over other ways of representing a company in a foreign market:
Simpler registration and management Representative offices cannot perform business transactions, which is why in many countries they are not regulated as strictly as other entities. Ability to open bank accounts Although representative offices are limited in terms of their functionality, they can still be used to open corporate bank accounts for their parent company in a foreign market. Simple initial market entry Representative offices are an advantageous solution if the parent company is not sure whether to expand into a particular foreign market or not, as they allow it to enter the market for initial research without the need to establish supply chains, a customer base, etc. Bypassing restrictions In certain jurisdictions, branch offices and other forms of company representation with the ability to engage in transactions are prohibited or subject to certain limitations. Representative offices are a way to enter the market while bypassing these restrictions. Disadvantages of a representative office A representative office also has certain disadvantages:
Inability to conduct direct business A representative office is unable to conduct transaction-related business in a foreign market, and so another form of company representation must be established for this purpose. This can lead to delays and additional spending, potentially costing the business its competitive advantage. Staff limitations Certain jurisdictions restrict the number and status of a representative office’s employees, with some requiring that one or a certain number of employees are staff members of the parent company and/or restricting the office’s ability to hire local staff. Period of validity Depending on the jurisdiction, a representative office may be limited in terms of its validity, i.e. it may have to be closed and registered anew after a certain period of time (usually a couple of years), whereas other company types are usually valid indefinitely.
The minimum monthly wage in Peru is 294 USD. Peru has a government debt of 49% of the country's Gross Domestic Product (GDP), as assessed in 2012. With regard to consumer prices, the inflation rate in Peru is 2.9%. The currency of Peru is Peruvian sol. The plural form of the word Peruvian sol is nuevos soles. The symbol used for this currency is S/., and it is abbreviated as PEN. The Peruvian sol is divided into centimo; there are 100 in one sol. Each year, consumers spend around $31,790 million. The ratio of consumer spending to GDP in Peru is 0.02%, and the ratio of consumer spending to the world consumer market is 9.17%. The corporate tax in Peru is set at 30%. Personal income tax ranges from 0% to 30%, depending on your specific situation and income level. VAT in Peru is 18%. In 2013, Peru received 393.8 million USD in foreign aid.In 2014, the foreign aid amounted to 604.8 USD.
Gross Domestic Product The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Peru is $372,694 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Peru was last recorded at $11,449,254. PPP in Peru is considered to be very good when compared to other countries. Very good PPP indicates that citizens in this country find it easy to purchase local goods. Local goods can include food, shleter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with very good PPP are safe locations for investments. The total Gross Domestic Product (GDP) in Peru is 200,269 billion. Based on this statistic, Peru is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Peru was last recorded at $6,152,314. The average citizen in Peru has very high wealth. Countries with very high wealth per capita have an extended life expectancy and very high standard of living. Highly skilled workers can be found in many industries, and labor is very expensive in these countries. Countries with very high wealth offer opportunities for safe investments, as they are often supported by a diverse and thriving financial sector. GDP Annual Growth Rate in Peru averaged 3.6% in 2014. According to this percentage, Peru is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly.
There are 32900 km² of cultivated land in Venezuela, and it comprises 4% of the country's total territory. In Venezuela, permanent crops occupy 7762 km² of the land. This comprises 1% of the country's total territory. There are 25138 km² of arable land in Venezuela. and it comprises 3% of the country's total territory. 13% of the population are working in agriculture. There are around 49000 tractors in use in the country.
There are 490 km² of cultivated land in Cape Verde, and it comprises 12% of the country's total territory. In Cape Verde, permanent crops occupy 30 km² of the land. This comprises 1% of the country's total territory. There are 460 km² of arable land in Cape Verde. and it comprises 11% of the country's total territory.
Crops The country's major agricultural crops and products are bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts, fish.
The adult literacy rate in Latvia is 99.9%. Male literacy is 99.9%. Female literacy is 99.9%. Therefore, male literacy and female literacy are the same. Government spending on education is 5% of GDP. Education index of Latvia is 0.813 – formal education level is high, secondary education is standard for most of the population; Higher education is highly available and widespread due to the fact that graduates are in economic demand, and in many of these countries higher education is also becoming a default option. The people of Latvia speak the Latvian language.
Trademark protection in the United States dates back to colonial times when American common law recognized some intellectual property rights. This tradition has its traces in history, because many American companies live from their marketing strategies. These companies understand the importance of registering and protecting their trademark to promote their brand.
Because of this, registering a trademark in the US is a fairly quick and cheap process compared to other countries, and even unregistered trademarks can enjoy some legal protection if they have already been used in commerce. If so, you must be able to demonstrate that your use of the mark is well established in your interstate business. This is not always easy to prove and it is not economical to hold your own against your competitor if you have skipped the registration stage of your trademark.
At the federal level, the United States Patent and Trademark Office (USPO) administers trademark registration in the United States. Because of the legal value of commercial use of trademarks, it is possible to enter the American market before applying for registration. Nevertheless, it is also possible and often advisable to file the so-called "intent-to-use" trademark application. You can file an Intent to Use (ITU) application if you make an affidavit of intent, but be aware (!) that in the event of litigation, you will need to demonstrate your efforts to “commercialize” your mark soon after the application date. Later you should be able to convert the (ITU Application) to the ordinary (Use-in-Commerce Application) using a set of specific procedures.
Before any filing, it is important to conduct a thorough research for possible trademarks that could be confused with yours. Attention! This research is the responsibility of the applicant. USPO offers a search system (Trademark Electronic Search System, TESS) that can be used for this search, but it must be noted that the search engine does not consider trademarks that are not registered at the federal level but are used in commerce that differ can even assert themselves against registered ones.
Descriptive marks can only be protected (so-called weak protection) if they are considered distinctive due to their commercial use for more than 5 years. The federal agency sets strict parameters to assess the class of products or services to which your trademark relates. To avoid confusion or many other grounds for refusal that the Office may find, you should consider seeking legal advice.
These free trade zones offer the opportunity to set up an offshore company in a location with highly developed infrastructure for banking and finance, business, tourism and entertainment. In addition to facilities for children and young people such as kindergartens, schools and international colleges, the free trade zones offer a high standard of living, security and stability. An important restriction to mention is the ban on trading in the UAE market. An offshore company in a free zone can only operate in the local business market through a local distributor.
Another very good reason to choose the UAE as the right place to set up your company is that offshore companies benefit from attractive investor interest protection laws and special tax regimes with 0% VAT, corporate and income tax. Like many countries in the Middle East, the UAE earned most of its wealth from the oil industry. Whilst the oil industry is no longer the main source of income in the UAE, the country can still afford to allow for a tax-free life in order to attract international companies and workers who further enrich and diversify the economy. The Vice President and Prime Minister of the UAE once stated that his country would never introduce an income tax to address the deficit. In addition, capital gains, inheritance or rental income are not taxed.
Offshore companies incorporated in one of the free trade zones must comply with the laws of that zone. Also, the incentives can vary; Most free trade zones offer 0% corporate tax as one of their many incentives, provided the company does not trade with residents of the jurisdiction.
Following the IMF's suggestions that the application of VAT could help diversify the UAE's economic resources, it was announced that from 1 January 2018, a 5% VAT would be introduced in the UAE. Certain groceries, educational and health items, bicycles and social services are exempt from VAT.
The UAE economy is growing steadily and according to the IMF will grow by 1.5% of real GDP in 2017. It is currently the third largest re-exporter in the world and the Abu Dhabi Fund for Development is considered one of the largest stabilization funds in the world. In addition, Dubai has taken various measures to develop all sectors of its economy, as a result of which oil revenues today account for less than 20% of total revenues, while the rest comes from business and finance sectors, air travel, tourism, transport logistics and education.
The UAE accounted for 62% of all private equity investments in the Middle East and North Africa by value and 34% by transaction volume in 2016. These positive changes were mainly driven by a sharp increase in investment in technology-related sectors – FinTech, IT and e- Commerce in particular. The number of disclosed private equity investments reached 244 (the highest number since 2008), with the largest deal of $350 million being raised by Careem, a regional provider of transportation services headquartered in the United Arab Emirates.
An investment account is maintained with such financial institutions as banks, brokerage houses, or even insurance companies. The main purpose of this account is capital preservation and growth, as well as fixed-interest profit through long-term deposits in the asset portfolio.
In general, "investing" means a proactive use of assets in a very broad definition - such as patents, trademarks, rare wines or gold coins, but also small businesses, real estate and antiques. In this regard, the investment account contains fewer physical assets: cash, stocks, bonds, and mutual funds. The basic investment objective remains the same – to buy the asset and hold it for the long term, and to sell it at some point in the future when the asset's value is cheaper. Depending on the asset you have decided to invest in, you need to evaluate your investment as a long-term process as you will have to wait for the particular asset to appreciate in value.
Investment Account Features Before opening an investment account, you should consider whether or not this type of financial service is best for your risk/return. Furthermore, liquidity preferences embody your goal. Investment accounts are usually maintained with long-term goals. Traditionally, the long term is considered to be 7 years or more, but this number should not be the primary determinant when deciding whether or not to open an investment account. This banking service is often used when there is a specific event in your life that requires a higher income, such as a wedding. For example, if you are sending your child to college, buying a house, or approaching retirement.
Since one of the main determinants of the investment account is its long-term nature, you should be ready to face another attribute of it - liquidity. Any financial instrument has less liquidity compared to cash in your checking or savings account. Additionally, this type of deposit usually comes with higher transaction costs in case you want to access the cash sooner than a specific time specified in the agreement between you and the financial institution.
Types of investment accounts If you have decided to open an investment account, the next step is to find a bank or other financial institution that can offer you the most suitable type of investment account regarding the costs, risk level and other components. There are various kinds of accounts designed for different needs and wishes of investor, but not all banks offer such services.
Brokerage account This account is managed by the investor himself. Usually, after depositing cash on this account, you can use the funds to purchase different financial instruments or other types of investments. This account involves a commission paid to your broker for executing your purchase and sell orders. If you feel uncertainty regarding your investing skills, you may use full service brokerage account, which would also include investment advices.
Retirement account This account is designed for long term continuous deposits over the years of employment, which results in higher income during retirement in addition to the state pension (if applicable in your country – ask us). In several countries, deposits in the retirement account are not tax applicable.
Custodial / guardian account These accounts are designed for investors, who want to save funds for their children or other person. This includes savings made for a child’s education.
Specialty account This type of account usually includes testamentary or non-testamentary trust accounts. In case of a non-testamentary trust account financial instruments are registered on behalf of the trust, while managed by a trustee. Meanwhile, a testamentary trust is opened through the testimony of a deceased person.
Business account Business account works similarly as brokerage account, while the client is a business instead of a private person.
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