Shenzhen Representative Office Registration

Arepresentativeoffice (RO) is an office established by a company to conductmarketing and othernon-transactional operations, generally in a foreign countrywhere a branchoffice or subsidiary is not warranted. A representative office(RO) is notconsidered to be a separate legal entity. It cannot directly engagein businessoperation. However, through which its parent company can enter intocontractswith its supplier/customers in China in its own name, but notunder the name ofRO. A representative office is popular for those who arewilling to enter Chinaat the test period of business and investment.

Situated in thePearl River Delta, Shenzhen has the besttransportation infrastructure,telecommunications systems and supply chains inall of Shenzhen, making thecity the top mainland platform for foreign companieslooking to expand in thecountry. Shenzhen investment still keeps a strongattraction for overseainvestors, even though during the current internationalfinancial crisis. Theinvestors who want to invest in Shenzhen must consider howto invest inShenzhen, where to invest in Shenzhen, how to set up business inShenzhen.

A. Company Name ofShenzhen RO Registration

The Chinesegovernment has a name format for anyone who wants to setup a RO inChina, theformat is: country (area) + parent company name + ShenzhenRepresentative Office

B.  The Advantage of Shenzhen RO Registration

The RO enjoys agreat popularity among foreign investors since its easier setup&management. Unlike foreign investment enterprises ("FIEs"),representativeoffices are not required to meet stringent requirements for itemssuch ascapital injection.

1. It can handlemarket research, sourcing, project investigation, qualitycontrol for parentcompany, liaison with customers and suppliers.

2. It cannot enterinto purchase/sales contracts and receive payment forservices, issue invoices.

3. A RO can openbank accounts and employ staff for above- mentioned purposes.

4. Apply for workpermit and residence permit.

5. A RO is stillsubject to tax liability, so monthly tax return should becarried out regularly.