Plenty of business people find the Chinese representative office setup procedure to be the most efficient way to conduct business. We know that different businesses come with different needs and demands, yet this model is certainly worth some attention as well. It has a few major advantages over other business types.
Representative office incorporation in China can fast, inexpensive and easy if you know how to do it. But unless you have spent many years studying this field in China, chances are you will need us or you only make the whole procedure harder. This office setup is practically a door for large corporations to enter the Chinese market. To make it simple to understand, the setup is like an “embassy” on a new market. After all, China has just been accepted in the WTO.
It is important to know that a representative office incorporation is not supposed to work as a partnership or proprietorship. None of these statuses is allowed for a rep office in China. After all, these are not admitted to be legal persons. But then, the setup has all the freedom in the world in conducting all kinds of indirect activities – from promotion and marketing to negotiations, exchange, research and liaison. In simple words, it can operate like a company, but it cannot operate for itself. Therefore, a parent enterprise is needed. Our main role is to establish this bridge and guarantee for a smooth transition.
Representative office setup in China may have a series of benefits and uses. For example, it is most commonly used to research and test the market. So far, it represents one of the most popular types of foreign presence in the country. The incorporation in China allows companies to find out more about the market, but also to determine how to join it in a more efficient way. Some companies rely on this choice to find new suppliers, customers, potential investors or investments and so on. Sure, no one will dive in out of nowhere, hence the necessity of some research. Search no more because we will both educate and guide you accordingly, regardless of how overwhelming the paperwork seems.
The advantages we can guarantee for with an office setup are quite diversified. Most importantly, the registered capital is not required. This is an excellent choice for smaller companies that do not have large capitals. Simply put, office incorporation can open the door to a new world.
In terms of human resources and taxing issues, we believe that the office setup in China is more advantageous than other business types. The WFOE might provide more control, but it is a lot more bureaucratic and demanding than a basic representative office. Therefore, it tends to slowly become a second choice for managers.
Finally, the incorporation is quick and simple. You do not need too much education or knowledge about the local market, yet we will teach you what it takes to make informed decisions. Of course, it is important to know what you are doing, but there are close to no major rules and requirements. At the same time, the setup is quite inexpensive when compared to other alternatives.
In conclusion, a rep office can be the ideal choice for a series of companies, as well as completely useless for others. Make sure that you analyze your necessities, current business status and farther expansion plans before deciding, but also take advantage of our experience.