A representative office is an office established by a company to conduct marketing and other non-transaction operations, generally in a foreign country where a branch office or subsidiary is not warranted. Representative offices are 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.
Function of China Representative Office
1. It can handle market research, sourcing, project investigation, quality control for parent company, liaison with customers and suppliers
2. It cannot enter into purchase/sales contracts and receive payment for services, issue invoices.
3. A RO can open bank accounts and employ staff for above- mentioned purposes.
4. Apply for work permit and residence permit.
5. A RO is still subject to tax liability, so monthly tax return should be carried out regularly.
6. If a RO is set up in Shanghai, it is qualified to get a car without entrance tax.
Advantages of China Representative Office
1. Affordable: no paid capital required, government and service fees are usually lower than what is needed for WFOEs.
2. Quicker registration process (usually within one month or so)
3. Less paperwork required for application (compared to wholly foreign owned enterprises)
China Representative Office （RO）is a good way for foreign investors since no paid up capital and the easy process. Tannet could assist the investors to set up the Foreign Invested Partnership Enterprise (FIPE), Wholly Foreign Owned Enterprise (WFOE), Joint venture (JV) and so on.
Procedure for China Representative Office
1.Securing an office for registration
2.Preparation and collection of relevant Registration Documentation
3.Online Registration Application Via Administration Industry and Commerce (AIC) website
4.Registration certificate and working card application
5.Chop-making and filing with Public Secretary Bureau
6.Enterprise Code Certificate Application at Technical Supervision Bureau
7.Tax Registration Certificate Application at Local Tax Bureau and State Tax Bureau
8.Bank account opening
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;