Representative Office (Rep.Office) is a non-profit office which established in China by some foreign enterprises according to China laws and regulations. It could engage in related non-profit activities as business supporting to its overseas mother company.
Representative Office has two types:
1. Representative Office in normal industries
It could be registered directly at government authorities.
2. Representative Office in special industries
The special industrials include but not limited to law firm, travel agency, bank, insurance company.
And according to China laws, regulations and rules, these Representative Offices must be approved by government authority firstly, the foreign mother company need to submit application documents to registration authorities within 90 days.
Characters of Representative Office:
1. Representative Office is not an independent legal entity, who cannot directly operate profitable 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 customers, cannot issue Chinese invoice (fa piao).
What legal activities the Representative Office can do in China?
1. Marketing research, exhibition and promotion activities related to its mother company’s products or services.
2. Business connections related to its mother company’s sales, services, local purchasing or investment in China.
Requirements on representative office registration in China:
1. The overseas mother company must have been established more than two years.
2. The certificate of incorporation, articles of association etc. official registration documents of overseas mother company , need to be authenticated by China embassy stationed at the same country.
3. The power of attorney to the legal signer of overseas mother company, need to be authenticated by China embassy as well stationed at the same country.
4. The appointment letter to chief representative of representative office, need to be authenticated as well by China embassy stationed at the same country.
5. Physical office and related supporting documents are required to be provided in original.
6. The basic information of overseas mother company includes but not limited to company name, registered address, post code, telephone, legal representative.
7. One representative office can have maximum 4 foreign representative (chief representative included).