What is the difference between Company Limited and  Representative Office ?

Although Representative Office (RO) can not conduct any direct profit-making commercial activities, compared to companies with a certain scale, foreign companies have a lot of role in establishing offices. For example, firstly, foreign agents in China may cooperate with bonded warehouses or import-export companies for operations. Secondly, for precision equipment manufacturers in the mainland for after-sales service. Thirdly, the Foreign trade importers and exporters who intend to enter the Mainland  China market will cooperate with the Mainland China’s foreign trade import and export companies  to complete the import and export actions. Basically setting up an office will have the function of a similar trading company. Lastly, intellectual property enterprises may authorize the use of their property rights on behalf of their parent company in China and have the ability to supervise the infringement of pirated copyrights.

In the process of applying for the establishment of Representative Office, the examination and approval authority of the Chinese government on the establishment of a foreign company office is relatively strict. Mainly from the establishment of the subject qualifications, location, chief representative or representative of the qualifications and credit status and other aspects of the review and restrictions.