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China Representative Office Formation

Updated:2018-5-11 15:26:32    Source:www.tannet-group.comViews:798

China representative office (RO) formation is one of Tannet’s business registration services. Representative Offices (RO) is a not a separate legal entity from its owners in the law of People’s Republic of China (PRC), it represents its parent companies that is not registered in PRC. Its function is for the parent companies to liaise with business partners like customers and suppliers in China, conducting direct businesses is strictly prohibited. Therefore, PRC’s RO cannot perform any direct and indirect income collection and its related services such as issuing invoice on its own.

Reasons of Setting up Representative Office in China
Representative Offices (RO) can perform all sort of liaison functions and non-transaction operations on behalf of its non-PRC parent company with businesses and industries in China, like conducting market research, promoting services and products and performing preparatory activities for future development.

Setup a RO is considered a perfect vehicle to enter into the China market as the first step by oversea entrepreneurship. Its establishment is easier than setup of a company in China which generally requires heavy capital injection into China, bureaucratic workload, long processing lead-time and reliable local resident. (Details: China WOFE formation service)

PRC’s RO is not allowed to perform sales but is less regulated and easier to setup. Therefore, RO is an alternative to company only if liaison with China’s industries is needed.

China RO Application Procedures
1. Preparation of applicant document and application letter;
2. Administration of Industry and Commerce Registration in PRC;
3. Obtain Certificate of Approval from the Foreign Trade Bureau / Bureau of Trade and Industry;
4. Obtain Certificate of Registration from the Administration of Industry and Commerce;
5. Registration with PRC authorities;
6. Preparation of representative office stamp;
7. Obtain Enterprise Code Certificate;
8. Application of China VISA for chief representative.

Requirements of China RO Setup
1. Chief representative: at least one representative manager; Personal identification document must be certified by China embassy or consulate overseas;
2. Local Address: one office address in commercial building in China;
3. Parent company: incorporation document or equivalent document certified by China embassy or consulate overseas;
4. Bank reference: notarized parent company’s bank reference letter.

Features of China Representative Office
1. No requirement of share capital;
2. Less burden on procedure of setup;
3. Allowable of foreign currency & Renminbi (RMB) exchange;
4. Hiring local employees via government qualified agents;
5. Simple regulations on structure of company and accounting books.

Practical Usage of China RO
1. Joining in activities related to market research and survey in China;
2. Liaison with business contacts in China;
3. As a coordinator on behalf of its parent company with clients in China;
4. Prepare agreements for parent company and clients in China;
5. Employing local employees via China government recognized HR agency in China.

Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.

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