China Rep Office Overview

What is a Rep Office in China?

A Representative Office in China, also known as a ‘RO’ or a Resident Representative Office of Foreign Enterprises in China, is basically a resident representative office of a foreign business that’s operating within China. This is to engage in indirect business activities in Mainland China on behalf of the foreign business. With a Representative Office in China, foreign businesses are able to carry out business transactions and other tasks pertaining to business that have been permitted by Chinese law on foreign business. 

A Representative Office in Chinais allowed to take up indirect business activities in China and carry out operational activities related to business on behalf of foreign enterprises. This can include, contacting, product promotion, market surveys, and technology communication. The daily operations of the RO must follow China law, including representative office china regulations, tax cases, labor laws, China representative office laws and rules, including other relative supervision regulations.

It is important to note that a Representative Office is just an office registration instead of a business entity or limited company. This means, all civil liability is taken on by the foreign company (head office/ mother company). A Representative Office is not a whole business institution. It is just an assistance unit that is used by the head office of a foreign enterprise. Its main goal is to help a foreign company enter the Chinese market.

Why is Setting Up a Representative Office in China Crucial for Foreign Businesses ?

Setting up a RO in Chinais a great way for foreign enterprises to enter the Chinese market quickly, and with a low cost. Besides that, a Representative Office Registration in China also provides more chances for the foreign enterprises to get to know the Chinese market. It provides foreign companies with the chance to carry out market research, and get familiar with market requirements and customs, local laws and how to operate as a business in China. At the same time, Representative Office also can supervise other joint venture enterprises and how they work, to establish the relationship with partners and customers. Normally, a RO in China can take up all forms of indirect business activities, after stating them explicitly in the setup file.

Important:A representative Office can't charge any fees or provide any relative contracts that may obtain earnings. While laws do not allow Representative Offices to directly engage in operational activities, that does not mean a RO cannot be involved in any economic activities. After a Representative Office Registration in China the RO is allowed to participate in economic activities, and sign the contract which is helpful for maintaining business operation.
Our services for a Representative Office Registration in China covers the largest cities in China, such as, Shanghai, Shenzhen and Guangzhou.