How to organize a representative office

There are a number of reasons why you might want to open a representative office or subsidiary. Perhaps these will be new local or regional units of your enterprise. Regardless of the reason, you can open a representative office by following a few simple steps.

You will need

• - business plan;

• - documentation;

• - premises;

• - budget.

Instruction manual

1

Think and write on paper the structure of your new office. Indicate how you plan to split the assets for the new division so that each of the enterprises has identical rights. Contact lenders and financial mentors. Explain your plan for the separation of the company - how, where and for what purpose you plan to open a representative office.

2

Create a business plan and evaluate the time it will take you to start a new company. Decide if you need to hire a specialist to help launch both types of businesses. Add new employees to the representation plan, as well as the necessary capital needed to launch it and explain how you plan to finance it.

3

Use the successful components of your business to obtain loans and venture capital to expand production, if necessary. You have come a long way and gained sufficient experience as an entrepreneur. Indicate this in your plan, and this will play an important role in its consideration by creditors.

4

Register a new unit. Contact your lawyer for assistance with all necessary paperwork. Transfer physical assets from the parent company to a new representative office. Mark each transaction in the parent company’s book as income and in the new unit’s book as debit.

5

Get all the necessary licenses and permission to expand your business and build (or rent) a new building. You will also need to take out insurance and fill out a tax return.

6

Set aside some of your advertising budget. The new representative office will not cause interest among others until you talk about it in the media. Tell everyone what successes you have achieved and that thanks to a promising business you have been able to achieve its expansion. In the end, your money spent will fully pay off.