Malaysia Hotline: +603- 2141 8908
Overview
A Chinese
representative office (RO) is an office of the foreign enterprise established
in China for liaison with Chinese businesses and customers on behalf of its
parent company. A RO is not considered to be a separate legal entity. It must
be emphasized that a representative office may not carry out direct revenue
earning business activities. For example, it cannot enter into purchase/sales
contracts and cannot receive payment for services, issue invoices. However, a
RO can open bank accounts and employ staff to maintain liaison with customers
and suppliers. Its headquarters can also enter into contracts with its
supplier/customers in China in its own name, but not in the name of its RO.
Therefore, before a foreign investor establishes its presence in China using
wholly foreign founded enterprise (WFFE) such as equity joint venture,
cooperative joint venture or a wholly foreign- owned enterprise, it could first
set up a representative office to test the Chinese market.
Advantages of RO
The simplicity and
short time required for establishing a RO is the main advantage for its
popularity in the Chinese market. Unlike wholly foreign founded enterprises
(WFFE), RO are not required to meet strict requirements for items such as registered
capital. And the following management is also relative simple and
money-consuming.
Contact us
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;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my