China RO

Representative offices are often the first step businesses take to establish a presence in the Chinese market. The parent company must have been set up for at least 2 years for a representative office to exist.

Show less

Advantages

Representative offices allow a glimpse into the Chinese market and demonstrates a commitment for an overseas company to introduce and sell its products in China. This overcomes the problems that third-party agencies and distributors create, who may have conflicting goals to your company.

An RO is the easiest foreign investment structure to set up, as, unlike a Wholly Foreign Owned Enterprise (WFOE), it has no capital requirements.

An RO can engage in market contracts and research for its headquarters, as well as work to further the business in other countries.

It is a relatively inexpensive business structure to establish in China, and it can be quicker and less complicated than other forms.

Show less

Disadvantages

Unlike a WFOE, an RO cannot issue invoices or engage in profit-seeking activities, and therefore can find the number of business activities it can engage in to be restricting.

Representative offices can only engage in indirect operational activities such as: introducing products for sale purposes; technology exchanges; quality control audits; business liaison roles; and market research.

Representative offices that are focused on distributional activities can often be complicated and risky, particularly with obtaining payment.

Unlike a WFOE, an RO cannot hire staff directly; instead, a relevant, authorized agency is required.

Show less

Requirements

Company Name:

We recommend that you submit at least two names for your representative office. The names of representative offices in Shenzhen need to specifically follow the structure of either: ‘Shenzhen’ or ‘Shenzhen City’ + name of business + business industry (e.g. ‘technology’ or ‘consulting’) + ‘Limited’; or the word ‘Shenzhen’ can appear in the middle. This must be in Chinese, although we can provide translations if you choose to submit in English.

Directors:

Rather than directors, representative offices must have a Chief Representative, who is responsible for all of the RO’s activities, and can sign all necessary government forms.

Shareholders:

As the core function of an RO is only to serve as a representative, there are no shareholders.

Company Secretary:

A company secretary is not required.

Registered Address:

A representative office needs to be located in a Grade “A” office building or alternatively an office where the landlord may rent office space to ROs. Commercial buildings must have approval from the government before being used as a business address.

Minimum Capital Requirements:

In a representative office, there are no capital contribution requirements.

Annual Reports:

For ROs in China, it is a legal necessity to prepare and file annual compliance reports, which consists of auditing, tax filing and inspection. A Certified Tax Agent (CTA) conducts the annual tax audits.

Registration Documents:

Notary of parent company
Appointment letter for the legal representative of the parent company
Bank reference letter, which needs to be notarized by the parent company
Photo of the legal representative
Notaries need to be at the Chinese embassy in your home country. However, Macau and Hong Kong are exceptions, in that you can obtain the notary at a law firm in Macau or Hong Kong. Taiwan needs double notarization.

Setup Time:

The average setup time is around 10 days.

Show less

Basic Package

Business Registration Certificate

Certificate of Incorporation

Organization Code Certificate

Foreign Exchange Certificates

Representative Office Seal

Company Chop

Services Included

Provision of registered office address

Government fees

Includes business registration certificate.

Reviewing client documentation and application materials

Preparing incorporation documents

Monitoring the entire incorporation process and keeping clients updated

China RO

Advantages

Disadvantages

Requirements

Basic Package

Services Included

Additional services

order summary

Your e-mail