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