Malaysia Hotline: +603- 2141 8908
The Representative Office (RO) is one of the common business vehicles through which a foreign company can establish their first presence in China. The relative simplicity and comparatively short time frame required to establish such an office is the main reason for its popularity.
A Representative Office is a relatively low risk initiative in comparison to alternative market entry vehicles, allows a certain level of control over China business activities through the employment of staff, and is often taken by foreign companies as the first step in developing full commercial operations in China.
A China Representative Office is not an independent PRC legal entity, but rather a liason between the headquarters of the foreign enterprise overseas and Chinese government agencies, trade organizations and prospective Chinese business partners. The parent enterprise will be legally responsible for the activities of its representative office.
For foreign companies looking to sell into the China market, a RO allows foreign companies to become familiar with the market, particularly the demand for their products and services and specific requirements of local customers. A RO further allows foreign companies to promote their brand and start to develop key relationships. Finally, a RO allows foreign companies to better understand the operations side of business in China, including costs, procurement, laws & regulations and market practices. Foreign companies procuring goods in China also use ROs, with the RO handling sourcing and quality control, complemented by a Hong Kong or FTZ Trading Company that handles the actual trading activities.
As a practical matter, it is necessary to establish a formal Representative Office for a foreign company to do the following in China:
- Open a office and display signs with the company’s name or using a company chop;
- Lawfully employ Chinese nationals;
- Open business bank accounts;
- Obtain multiple entry visas from the Chinese Consulates overseas;
- Import office equipment and supplies;
- Import personal effects of resident company representatives;
- Use business cards showing local contact information.
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