EN
China RO
A resident representative office of foreign enterprise in China.
China RO

China RO

A resident representative office of foreign enterprise in China.

A representative office is an office established by a company to perform marketing, quality control and other non-transactional operations in China which is generally easier to establish than a branch or subsidiary, as they are not used for actual "business" (e.g. sales) and therefore there is less incentive for them to be regulated.

Operation flow

Pros and Cons

Pros

  • No share capital is required;
  • Setup in less procedure;
  • Can exchange foreign currency into RMB;
  • Can hire local staff via government admitted agents;
  • Simple company and financial structure.

Cons

  • Not business entity;
  • Tax rate is high;
  • No invoicing;
  • Must be investment in company;
  • Mother company needs to be at least 2 years old.

Do & Don't

DoDon't
  1. Activities related to research and survey in the China market;
  2. Liaise with business contacts in China;
  3. Being a coordinator for the parent company's representatives and clients;
  4. Make agreements such as travelling for parent company's representatives and clients;
  5. Allow to hire local employees via HR agency in China.
  1. Conduct business operation in China;
  2. Sign contracts on behalf of parent company;
  3. Receive payments from clients or invoicing in China for any services and products;
  4. Purchase of any properties, equipments and etc. for business operation;
  5. Hire local labors directly.

Items of Documents

  • Articles of Formation or Equivalent document certifier by Chinese embassy or Chinese consulate overseas;
  • For individual investor : Identication documents must be certified by Chinese embassy or consulate
  • Copy of Bank reference Letters with Notarization x 2;
  • Copy of office address in China (Commercial Building Required) x 2;
  • Photos (2-inchs size) of RO Chief Representative x 4.

General setup procedure

Incorporation flow
BACK TO TOP