Representative Office (RO) in Guangzhou

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Representative Office (RO) in Guangzhou

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Representative Office (RO)
Provided that you have a business overseas that has been running for at least two years, you can open up a Representative Office (RO).
ROs are not allowed to directly engage in operational activities, RO can't issue official invoices, nor receiving payments from it's clients. State Administration of Industry and Commerce (SAIC) usually specifies in scope of business, as it shown in the Registration Certificate of ROs, that ROs can not engage in direct operational activities. Therefore, it's not a form of foreign direct investment (FDI) in China. However, some ROs are engaged in operations in a lawful or tacitly permitted way and constitute one of the direct foreign Investment forms in China, for instance: ROs of foreign law firms, ROs of foreign airlines etc.
A Representative Office in China may only engage in non-profit making activities, it can carry out the following functions:
Conduct research and survey for its parent enterprise in the local market
Liaise with local and foreign contacts in China on behalf of the parent enterprise
Conduct research and provide data and promotional materials to potential clients or trading partners
Act as a coordinator for the parent enterprise's activities in China
Make travel arrangements for parent enterprise representatives and potential Chinese clients
Under no circumstances may a Representative Office do the following in China:
Directly engaged in any business for profit
Sign contracts or deals on behalf of the parent enterprise
Represent any firm other than its parent enterprise
Collect money or issue invoice within China for services or products
Buy property or import production equipment
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