Registering a residential Representative Office is a good choice for foreign enterprises planning to enter the China market

It can be seen as an initial step for foreign investors who want first investigate local business opportunities and later decide whether or not, to pursue long-term direct investments.

The procedure for establishing a representative office is comparatively simple, in regard of the requirements to set up a subsidiary office (WOFE) or a branch.

However, a representative office is not a body incorporated and is prohibited from carrying out any profits seeking business, such as purchase and sales contracting, or providing services for profits.

China Business regulations state that a RO is only allowed to engage in non-direct business activities.

A representative office can open bank accounts, and hires employees for business contacting purpose, and provide promotional and co-ordination functions for its head office.

However, all deals must be made under the title of the foreign enterprise, not its representative office.

On behalf of our clients, BusinessLands Consulting undergoes the legal procedures and registrations steps, required by the different local administration offices for foreign enterprises, to be granted a residentential Representative Office status in China (Business Registration Certificate).