The main difference lies in their permitted business activities. A representative office generally handles market research, business liaison, information gathering, and coordination for its foreign head office. It is generally not permitted to conduct profit-making business in Taiwan. A branch office, on the other hand, may conduct business and generate revenue within its approved scope, subject to applicable registration and tax requirements.
Foreign companies seeking only a local contact point may consider a representative office, while those planning to conduct business directly in Taiwan may consider a branch office. The appropriate structure depends on business
objectives, regulatory requirements, and tax planning.