China Representative Office
A China representative office is an office of a foreign enterprise set up in China to interact with Chinese businesses and customers on behalf of the China representative office's master company. The following information will help you determine whether a China representative office is the best corporate solution for your business. | |
| Advantages of a China Representative Office | |
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Although a China representative office cannot directly carry out business in the country, it can help its parent company create income from sources inside China.
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A China representative office can function as a liaison between the parent company's headquarters and related industries in China.
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A China representative office can conduct market research and analysis and prepare for the parent company to enter the Chinese market.
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Registering a China representative office is typically quicker and less complicated than incorporating a Foreign-Invested Commercial Enterprise (FICE) or Wholly-Owned Foreign Enterprise (WOFE).
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Unlike a FICE or WOFE there is not a minimum registered capital requirement for a China representative office.
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Disadvantages of a China Representative Office |
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A China representative office is an inefficient body with which to trade within China. Most clients now prefer to set up a China FICE or a China WOFE, which do not require a 'middleman' like a China representative office.
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A China representative office must have at least one Chief Representative. Although the Chief Representative can be any nationality.
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Appointing a new Chief Representative is complex and time-consuming.
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A China representative office must have a real office address. A lease agreement (minimum term one year) must be presented to the authorities.
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A China representative office can be set up as a legal entity for a maximum of only ten years. |
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Setting up a China representative office is time-consuming and complicated, requiring large amounts of paperwork and visits to authority offices. The offices to be visited include the Administration of Industry and Commerce (AIC), the Public Security Bureau, the Institute Code Centre, the Foreign Currency Bureau, the State Tax Bureau and local State Tax Office, the Local Tax Bureau and Local Tax Office, the Bank, the Statistics Bureau and Local Statistics office and Chinese Customs.
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Other Information on a China Representative Office |
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Foreign enterprises that want to set up a China representative office in China must be a legally registered business in their home country. |
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A China representative office can open both foreign currency and RMB corporate bank accounts. The foreign currency account is used for receiving funds from the representative office's parent company in its home country. The RMB account is used for expenses in China. Beneficial banks for a China representative office to use include HSBC, Standard Chartered and Citibank in China. |
Healy Consultants' Fees to Set Up a China Representative Office |
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Healy Consultants’ fees to set up a China representative office are US$6,250. |
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Other Information on China Representative Office Formation |
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Contact Us |
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For more information on any of our China representative office services, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. |
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