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What is a representative office China?

A representative office (often shorted to rep office or RO) is the simplest and fastest option for overseas businesses to set up an operation in China. In simplest terms, it allows a foreign company to engage in market research or business operations in China, but not to make a profit.

How do I set up a rep office in China?

Rep Office registration in China – the setup process

  1. Obtain approval for company name.
  2. Sign rental lease for office space.
  3. Make application to AIC for registration.
  4. Carve company chops.
  5. Enterprise Code.
  6. Register for tax payment with the local tax bureau.
  7. Obtain visas for foreign employees.
  8. Open Chinese bank account.

How do you close a representative office in China?

Closing an RO typically takes six months to one year, or longer if irregularities are found.

  1. Employee termination.
  2. Tax audit.
  3. Tax deregistration.
  4. Deregistration with SAFE and customs.
  5. Deregistration with SAMR.
  6. Bank account closure.

What is the difference between a branch and a representative office?

In most countries, a representative office cannot handle transactions or contractual matters. A branch office, on the other hand, is a direct extension of the parent company and can engage in core activities like sales and contracts. Critically, however, it is not a separate legal entity from the parent company.

Is a China representative office a legal entity?

To be clear from step one, a Representative Office doesn’t constitute an independent legal entity in China, meaning that its registration merely grants the foreign business a presence in the local market.

What does a rep office do?

A representative office is an office established by a company or a legal entity to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted.

What is a foreign representative office?

A representative office is an office established by a company or a legal entity to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted. A representative office is known in France as a bureau de liaison.

What can a representative office do?

Can a representative office have employees?

The authorities have stipulated that a representative office can hire only up-to a maximum of five employees. Any change(s) to the representative office (such as a change in representatives, change in address, registered activities, etc.)

How do I open a US representative office?

Setting up a new U.S. Branch of your Foreign Company and applying for the L-1A Visa

  1. Step 1: Prepare a Business Plan.
  2. Step 2: Set up the US Company.
  3. Step 3: Set up a U.S. Business Checking Account:
  4. Step 4: Obtain a B-1 Business Visa to set up the Physical Office Space.
  5. Step 5: Apply for the L-1A Visa with USCIS.

Is a representative office a separate legal entity?

A Representative Office (RO) is essentially a temporary administrative office set up as a liaison to coordinate and manage non-commercial activities, for a foreign company. An RO has no legal status and is not a separate legal entity from its parent company.

Is a representative office a permanent establishment?

A representative office is a temporary facility that allows foreign companies to assess the viability of doing business in Singapore. Such an office can be created before setting up a permanent establishment in the country. A representative office has no legal status and cannot conduct any commercial activity.

What does it mean to have representative office in China?

As the name suggests, a representative office in China is the local representative of your business, a place where local Chinese clients and contacts can meet you, and a place that can exert control over your brand, marketing, and supply chain in China.

How long does it take to open a rep office in China?

A Rep Office can normally be set up in several months less than a WFOE. A Rep Office can hire both local and foreign employees, with employment and payroll handled by a Chinese agency. Do you need a Representative Office? When opening a Rep Office in China, we always advise companies to think carefully if a Rep Office structure is right for them.

How many PTC clients choose rep office as their China business entity?

About 10% of PtC’s clients chose Rep. Office as their China business entity, a roughly comparison between these 4 modes, check the Comparison Chart. :According to State Administration of Industry and Commerce’s file: Gong Shang Wai Qi [2010] No.4, PARENT COMPANY must be established for more than 2 years

When to register a foreign employee in China?

A new rule on foreign employees’ social security in effect starting October 15, 2011. It is said that if a company hires a foreign employee, the company shall register this employee with the local social security authority within 30 days of the employee receiving their work permit. 1.5 Monthly Cost to maintain a Rep. office in China: