What is China RO?
China Representative Office (RO) is a non-incorporated entity as an extension of enterprises incorporated outside mainland China for conducting business-related liaison activities in mainland China. It is not a separate legal entity in China, all activities of the China RO are held responsible to its parent company.
China RO is prohibited from conducting any profit-making transactions in mainland China. In other words, it is merely a money-spending entity in China.
- Local entity wholly owned by non-PRC enterprises in mainland China
- Restricted to perform liaison with their business partners in mainland China
- Prohibited from handling money-making transactions (i.e. trade, selling, reselling, invoicing)
- Subjected to less regulatory than that of China WFOE
- Not a separated legal entity form its foreign parent company.
- Foreign parent company must be at least 2 years old.
Generally Allowed Activities
- Market research and survey
- Liaison with business contacts
- Coordinate with clients on its parent company behalf
- Prepare agreements for parent company and clients
- Employ local employees via China government recognized HR agency
Strictly Prohibited Activities
- Sign contracts on behalf of parent companies
- Receive payments from clients
- Invoice in China
- Purchase of any properties and real estate
- Hire local labors directly
- At least one person
- Personal identification document
- One office address in commercial building in China
Foreign Parent Company
- Incorporation document
- Bank reference
Documents in foreign languages must be translated into Simplified Chinese by China Embassy or Consulate
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