ROs operate under two sets of Chinese legislation, the Interim Regulations for Control of Resident Representative Offices in China, issued in 1980, and the 1983 Procedures for the Registration & Administration of Resident Representative Offices of Foreign Enterprises in China. ROs for banks and other financial institutions are governed by separate regulations. In addition, some municipalities and provincial governments have rules of their own, covering specific areas.

An RO has no legal personality which means it does not possess the capacity for civil rights and conduct, cannot independently assume civil liability, and is limited in its hiring ability. Chinese staff working for an RO, must be employed through a human resources agency that will sign a contract with the RO on the one hand and with the Chinese staff on the other in order to ensure social security and housing fund contributions are paid on a regular basis. Foreign staff working for ROs should have an employment relationship with the parent company abroad, and any disputes should be settled under the laws of that country.

The defining characteristic of an RO is its limited business scope, an RO is generally forbidden from engaging in any profit-seeking activities, and can only legally engage in:

l   Market research, display and publicity activities that relate to company product or services; and

l   Contact activities that relate to company product sales or service provision and domestic procurement and investment.

l   Organise business meetings, and business visits from company headquarters.

l   Conduct public relations work.

l   Undertake local administration.

What we do:

l   Agency service for setting up Representative Office in China

l   Apply for the “Z” visa and resident permit for foreign employees.

l   Apply for monthly accounting report, annual audit and final settlement.

l   Litigation service, ADR service.