Set Up Representative Office (RO) in China, mother company needs to be at least 2 years old.
(From 31th 12/2009)

Set Up Representative Office in China, or called permanent delegate organization of foreign corporation, can only engage in the indirect business activities in China and represent the parent corporation to do business.(the mother company will be Hong Kong company)

Its activities are limited to a range from the technique communication and products promotion to marketing research. The office is authorized to undertake management activities and sign contracts or agreements which are to assure its sound running.

China Representative Office - Although not profit center, cost expenses still attract tax liability, Limitation in activity. No trading or invoicing is allowed, Local staff should be hired via government admitted agents.

Key Points of Set Up Representative Office (RO) in China However, below is still not clear about this "2 years old" rule :

- A Chief Representative (CR) is to be appointed;

- Company should be able to present bank reference letter;

- An office premise rental agreement (or ownership document) which is valid for foreign investor use. The term should be at least 12 months long;

- Takes around 1 month to apply.

Applicable or not to Hong Kong company?  Please Click our Website Home www.hkcren.com for more information