RHQ and ROHQ

Multinational companies, i.e. foreign companies with business establishments in two (2) or more countries, have the option of setting up either an RHQ or an ROHQ in the Philippines.

An RHQ is an office whose purpose is to act as an administrative branch of a multinational company engaged in international trade, principally serving as a supervision, communications and coordination center for its subsidiaries, branches or affiliates in the Asia-Pacific Region and other foreign markets. RHQs do not earn or derive income in the Philippines.

On the other hand, an ROHQ is an office allowed to derive income in the Philippines by performing the following services to its affiliates, subsidiaries or branches in the Philippines, in the Asia-Pacific Region and in other foreign markets:

• General administration and planning
• Business planning and coordination
• Sourcing/procurement of raw materials and components
• Corporate finance advisory services
• Marketing control and sales promotion
• Training and personnel management
• Logistics services
• Research and development services, and product development
• Technical support and maintenance
• Data processing and communication
• Business development