Pros
- Least capital injection required. As RO is not a legal entity, actually no minimum share capital is required;
- Can handle market research, sourcing, project investigation for mother company, who in turn to execute trading function;
- Can hire local staff.
- Limitation in activity. No trading or invoicing is allowed;
- Local staff should be hired via government admitted agents;
- Although not profit center, cost expenses still attract tax liability.