What is a representative office in Germany, and how does it work?

La oficina representativa alemana

The representative office is the legally dependent representation of a foreign company in the country and is managed by an external and appropriately appointed business person (for example, a sales representative). No commercial activity of the foreign company is carried out.

The representative office is not seen as a commercial enterprise under the German Trade Regulations (GewO). The activity of a representative office is merely for market research, customer/supplier contact management and in a smaller scale, for after-sale service. Activities which might have a commercial background are not permitted. This includes the creation or the passing on of an offer under its own letterhead.

The creation of a representative office is done through the actual process of its establishment. No entry is required in the German commercial register. In the case of companies from non-EU countries however, the representative office is registered with the relevant consumer protection office in Hamburg. At the same time, the residence permit of the representative must be presented.