Representative Office

A China representative office,  is a local presence in China for a foreign company.

Actually, despite being in China, the rep office is quite different to a WFOE or joint venture company, as it is not a company which is legally allowed to do business and make profit.

A rep office exists to allow a foreign parent company conduct business meetings, perform quality control, promotion of products or services, and market research.

It is a cost centre, which is funded by the foreign investor (the parent company), and acts as their foreign arm allowing them to perform activities within China which might benefit their overall business.

A rep office, due to not being a legal entity which is allowed to trade within China, is fairly straightforward and fast to set up. Hongda will usually have a rep office registered within around 2 weeks.