Overview of Representative Office
Representative Office is a contact unit established in China by its foreign parent company. Representative is not a separate legal entity and thus cannot carry business in China. Representative Office is not allowed to purchase/sale products or render services in China. Therefore, Representative Office cannot issue invoice or remit money to overseas. However, Representative Office can open bank account in China and employ employee to promote its parent company business.
Advantages of Representative Office
Application process is much easier and faster than other types of entities.
Business Scope of Representative Office
Only indirect business activities are allowed i.e. Public relation, business contact, exhibition of products, market research and communication of information technology, etc.
Period and Termination of Representative Office
Representative Office is normally valid for 3 years. You may apply extension 30 days before the expiry date.
The foreign Company should be operated for over 1 year with registered capital of HK$100,000 or above; it should be a normal trading, manufacturing or logistic company, etc; The application should be filed by an appointed local agent to the respective governmental bodies.
Procedure for Application of Representative Office
- Application form for establishment of a representative office
- Rental agreement (Original)
- Bank reference letter issued by investor’s banker within 6 months before the application (2 set)
- Copies of documents to prove the existing relationship with China’s enterprises (e.g. business contracts, agreements, sale order, delivery notes, etc)
- Authorization letter of the officer appointed by the Chairman of the foreign party (Under company’s letterhead)
- Tax documents
- Copy of passport, 4 photos, Hong Kong ID card or special pass of the legal representative
- Certificate of incorporation of the foreign party (Certified by respective China’s Embassy)
Time Required for the Application
Around 20-30 working days.
Upon completion of the registration, you can get the required license and able to carry business in China.