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representative
office
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A
China representative office (“RO”) is an office of a foreign
enterprise set up in China for liaison with businesses on behalf
of its head office. A RO is not considered to be a separate
legal entity. A RO may not carry out direct revenue earning
business activities. It cannot enter into purchase or sales
contracts and cannot receive payment for services, issue
invoices nor repatriate monies overseas. 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 supplies or customers in China in its own name, but not in
the name of RO.
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Chief
Representative would be appointed. RO is usually be located in Grade A
buildings, and hire local staff via an organization known as FESCO. FESCO
are responsible for ensuring mandatory welfare payments for staff in
China.
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RO
can
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Undertake
business liaison work and support local distributors or sales
teams.
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Receive
fees or generate income.
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Undertake
market research.
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Manufacture.
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Provide
product recommendations.
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Hire
employees directly.
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Provide
technological exchange and training.
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Issue
commercial invoices.
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Therefore,
a RO is restricted to conduct only "non-direct business
activities", such as business liaison, market surveys for internal
purposes, technology exchanges and product presentations etc.
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The
information provided on this web site is for your general guidance
only. Before you take any action or decision based on this
information, you should obtain professional and legal advice which
apply to your specific circumstances. Advantage Hong Kong, its affiliates and staff do not accept any
responsibility, loss or liability arising in connection with the
information on this web site. |
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