© 2018 by Financeren P.R. of China

Setting Up a Representative Office

The previous mostly used way to enter into China has become less attractive for foreign investors in favor of WFOE.

 

Nevertheless for some is still the legal entity that fits better the strategy in China.

 

To qualify for the registration of a Foreign Representative Office in China,
you need to be able to demonstrate the following

 

·       Parent company is an existing overseas company operating for a min. of 2 years

·       If necessary, provide Articles of Association

·       Provide adequate certification of foreign parent company incorporation

·       Furnish (notarized) Letter of authorization to establish RO in China

·       Provide bank reference letter for parent company

IMPORTANT CONSIDERATIONS

Under the uphold of the current law, all business activities within China shall only revolve around representing its overseas parent company only. As such, the means of a Foreign Representative Office shall include and therefore allow for:

 

  • The liaison with local business entities

  • The conduct of local researches and/or surveys

  • The provision of business (promotion) material to potential business partners

  • The promotion and presentation of products and services

  • To act as activity and travel arrangement coordinator


A Foreign Representative Office may receive exemptions and be allowed to limited extended business activities where existing, bilateral treaties between the two countries do in fact allow for such extensions.

  • Any business activity to derive direct profits from

  • Signing any contracts, agreements or special deals

  • Representing any 3rd party individual and/or body corporate

  • Issuing any legal document or invoice

  • Receiving any kind of payment or reimbursement

  • Buying any property

  • Importing of production equipment

  • Self-employ any staff members

NOT ALLOWED TO ENGAGE ON

  • LinkedIn - White Circle