China Representative Office Registration
A Representative Office is an organization that carries out market contacts and research for its headquarters, and assists in developing its business in other countries.
In comparison with WOFE companies, Representative Offices cannot issue any invoices, and therefore gain any income by itself. All expenses of a representative office have to be fully funded by the company headquarters.
China Representative Office Formation
The easiest and the most economical way for Small and Medium-sized companies to have a legal presence in China is to establish a Representative Office (RO). The purpose is for the liaison with businesses and customers from China / Asia to the rest of the world on behalf of its parent company.
A RO is not considered to be a separate legal entity (i.e. it is tied to its parent company) and it cannot carry out direct revenue earning business activities (i.e. it cannot enter into purchase/sales contracts and cannot receive payment for products or services, issue invoices or repatriate monies overseas).