How to set up a Representative Office in China

How to set up a Representative Office in China

Setting up a Representative Office in China is a quite efficient way for you to get your feet into China. Setting up a Representative Office in China is also a wise idea to help investors to know more about Chinese market and information. And nowadays there are more and more entrepreneurs and investors coming to China to set up Representative Offices.

Set up a Representative Office in China – General Information

Usually an RO is used as a basis for doing market research within China and other not for profit seeking activities like e.g. meeting and researching / acquiring suppliers and potential customers. It is thus the easiest way to officially step into the Chinese market but also a quite efficient one, if you just want to improve supplier or customer relations quickly.

Set up a Representative Office in China – Main Functions

1) Conduct research and survey for its parent enterprise in the local market;

2) Liaise with local and foreign contacts in China on behalf of the parent enterprise;

3) Conduct research and provide data and promotional materials to potential clients or trading partners;

4) Act as a coordinator for the parent enterprise's activities in China;

5) Make travel arrangements for parent enterprise representatives and potential Chinese clients;

Set up a Representative Office in China – What RO May Not Do

1) Directly engaged in any business for profit;

2) Sign contracts or deals on behalf of the parent enterprise;

3) Represent any firm other than its parent enterprise;

4) Collect money or issue invoice within China for services or products;

5) Buy property or import production equipment. 

Opportunities and Limitations of a Representative Office

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