Malaysia Hotline: +603-2141 8908
A representative office is an office established by a company to conduct marketing and other non-transaction operations, generally in a foreign country where a branch office or subsidiary is not warranted. Representative offices are generally easier to establish than a branch or subsidiary, as they are not used for actual "business" (e.g. sales) and therefore there is less incentive for them to be regulated but it do have tax incur.
China Representative Office - Allowed Activities
The following are the allowable activities for a Representative Office in China:
- performing liaison, promotional and co-ordination functions for its head office
- buying or leasing its own office premises
- import of reasonable amounts of normal office equipment (note: the imported commodities are subject to import customs duty and import taxes)
- importa of personal effects in reasonable amounts
- helping to obtain working visa and related applications in respect of expatriate employees
- contracting with an approved employment service organization in China for the provision of local staff to work for the Permanent Representative Office
- opening necessary bank accounts in the name of the Representative Office.
China Representative Office - Restriction Activities
- rendering services to any persons other than its head office (e.g. suppliers or customers of the head office, fellow subsidiaries or associated undertakings of the head office)
- soliciting, concluding or signing business contracts with any customers in China
- determining prices of goods or offering any sales discounts to customers
- issuing bills or invoices to customers
- collecting money from customers or issuing business receipts to customers
- Warehousing and managing inventory in China for trading purposes
- hiring local staff directly without the use of an approved employment service organization in China
- any activities other than of a liaison nature (e.g. quality control services and installation and testing services) not specified in the BRC of the RO.
Advantages of China Representative Office
1. Affordable: no paid capital required, government and service fees are usually lower than what is needed for WFOEs.
2. Quicker registration process (usually within one month or so)
3. Less paperwork required for application (compared to wholly foreign owned enterprises)
China Representative Office （RO）is a good way for foreign investors since no paid up capital and the easy process. Tannet could assist the investors to set up the Foreign Invested Partnership Enterprise (FIPE), Wholly Foreign Owned Enterprise (WFOE), Joint venture (JV) and so on.
Tannet Malaysia is an International Consultant Firm based in Hong Kong, Shenzhen. We provide one stop business solution to those investor who are interested to expand of their business oversea. Besides, we offer various of services such as international company incorporation, commercial secretarial services, business proposal drafting, due diligence, market research and etc. Kindly contact us for more information if you are interested!
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 Shenzhen hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : www.tannet-group.net, en.tannet.com.my