Representative Office (Rep.Office)
Representative Office (Rep.Office) is a non-profit office which established in mainland China by some foreign company according to China laws and regulations, could operate some business activities related to its overseas mother company in mainland China. And according to China laws, regulations and rules, some Representative Office must be approved by government authority, the foreign mother company must submit application documents with 90 days to registration authorities.
Characters of Representative Office:
1. Representative Office is not an independent legal entity, who cannot directly operate profitability business activities in China.
2. Its business operation is definitely different to Trade WOFE, consulting WOFE, Technology WOFE or foreign manufactory.
3. Representative Office cannot hire local Chinese employees directly but have to hire Chinese employees through legal labor dispatch company, it will cause additional cost and not convenient.
4. Representative Office pay tax based on its expenses.
5. Representative Office cannot sign business contract with local supplier, no right to issue Chinese invoice (fa piao).
What legal activities the Representative Office can do in China?
1. Marketing development, exhibition display and promotion actions related to its mother company’s products or services;
2. Business connections related to its mother company’s product sales, service provide, local purchasing or investment in China.