Set Up a Representative Office (RO) at Hangzhou China

Set Up a Representative Office (RO) at Hangzhou China

A China representative office (RO) is an office of a foreign enterprise set up in China for liaison with Chinese businesses and customers on behalf of its parent company.
A RO is not considered to be a separate legal entity. It must be emphasized that a representative office may not carry out direct revenue earning business activities.
For example, it cannot enter into purchase/sales contracts and cannot receive payment for services, issue invoices nor repatriate moneys overseas.
However, a RO can open bank accounts and employ staff to maintain liaison with customers and suppliers. Its head office can also enter into contracts with its supplier/customers in China in its own name, but not in the name of its RO.
Therefore, before a foreign investor establishes its presence in China using foreign investment enterprises (FIEs) such as equity joint venture(JV), cooperative joint venture(JV) or a wholly foreign- owned enterprise(WFOE), it could first set up a representative office to test the Chinese market.
Feel free to contact me if you have any questions on what refered to above or other investment or trading business.
email: haoenjun@goinvestchina.com

How to Start Business at Hangzhou China

There are various forms of investment entities available to suit different business objectives and operations:
1. Wholly Foreign-Owned Enterprise ( WFOE)A WFOE as the name suggests - is 100% foreign owned but could be a manufacturing wfoe, consulting wfoe, catering wfoe etc. It will allow you greater management control and flexibility.
2. Foreign Invested Commercial Enterprise(FICE) A FICE could also be classified as a WFOE and it is in nature a trading company allowed to do retail and wholesale activities in China.
3. Joint Ventures(JV)If your investment involves a Chinese partner you could probably go to set up either a Sino-Foreign equity joint venture or a cooperative joint venture.
4. Representative Office ( RO)Setting up a representative office has been the most simple way to get into China and the easiest way to gain on-the-market experience.
5. Mergers and Acquisitions(M and A)Mergers and acquisitions are also powerful ways to enter China market. M and A can provide enhanced speed to market, increased incentive alignment, local knowledge, expertise, and access to a strong network of relationships.
Feel free to contact me if you have any questions on what refered to above or other investment or trading business.
email: haoenjun@goinvestchina.com