Representative Offices (ROs), also known as Permanent Resident Offices, are established by foreign companies to engage in business liaison, product promotion, market research, exchange of technology and other permitted activities in China.

ROs are not allowed to directly engage in operational activities. The Administration of Industry and Commerce (AIC) usually specifies in the Business Scope, which is shown on the Business License of ROs that it should not engage in any direct operational activities. Therefore, RO is not considered a form of direct foreign investment in China.

It should be noted that up to now only Representative Offices (RO) of foreign airlines are exempted from that restriction under bilateral treaties.

Representative Offices (RO) are important as foreign companies may conduct business liaisons and coordination or engage in pre-operational market research. In this respect, foreign companies refer to all companies that are incorporated outside China as well as those in Hong Kong, Macau and Taiwan.

 

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