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.
Characteristics
- 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
Requirements
Chief Representative
- At least one person
- Personal identification document
Local Address
- 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
Service Fee
Please contact us for quotation. Our service fee is based on the combination of time spent and level of expertise.