THE FORMATION OF REPRESENTATIVE OFFICE (RO) IN GUANGZHOU
OVERVIEW
A Chinese representative office (RO) is an office of the foreign enterprise established 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 sign purchase/sales contracts and cannot receive payment for services, issue invoices. However, a RO can open bank accounts and employ staff to maintain liaison with customers and suppliers. Its headquarters can also sign 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 enterprise in China using wholly foreign founded enterprise (WFFE) such as equity joint venture, cooperative joint venture or a wholly foreign- owned enterprise, it could first set up a representative office to test the Chinese market.
ADVANTAGES OF RO
The simplicity and short time required for establishing a RO is the main advantage for its popularity in the Chinese market. Unlike wholly foreign founded enterprises (WFFE), RO are not required to meet strict requirements for items such as registered capital. And the following management is also relative simple and money-saving.
Hong Kong DaDa Enterprise Services Limited
CONTACT
Hugo
Phone:15919604369
GUANGZHOU TEL: 86-20-22810283
GUANGZHOU FAX: 86-20-22810502
EMAIL: dada2_hongkong@hotmail.com
GUAGNZHOU ADDRESS:24Floor,Room 2415-2416,No.316 Huanshizhong Road，Yuexiu District，Guangzhou，China
HONGKONG ADDRESS:Room1005-A, HO KING COMMERCIAL CENTER 2-16 , FA YUEN STREET ,MONGKOK KL HK
MSN: dada2_hongkong@hotmail.com
WEBSITE： www.juexiang.comhongkong.com www.juexiang.comhongkong.net
