The representative office (RO) is a simple extension in China for foreign companies.
It allows to:
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Profit from an official presence to analyze and prospect the Chinese market, make contacts for your activities in China.
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Animate a network of local distributors and/or to prepare another investment
Representative office is possible to recruit the local personnel and to give a resident statute to the foreigner who works and lives in China.The fields of activity of representative office remain strictly limited:
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It should not carry on any commercial activities in its proper name, but only for the account of its head squares.
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The representative office can be declared indebted income tax of the companies, in particular when the tax authorities estimate that a generating activity of benefit is carried out by the office itself (Various methods can be applied to determine the taxable profit).
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