Why set up a Representative Office (RO) in China?

A Representative Office (RO) is an effective way for foreign investors to get a feel for the Chinese market while demonstrating commitment to the market. It is the easiest type of foreign investment structure to set up and, unlike the Wholly Foreign-Owned Enterprise, has no registered capital requirements. It is, however, forbidden from engaging in any profit-seeking activities, and can only legally engage in:

• Market research, display and publicity activities that relate to company product or services, and;
• Contact activities that relate to company product sales or service provision and domestic procurement and investment.