What a representative office can do
- Market research and product promotion
- Liaison with suppliers, customers and partners on behalf of the parent company
- Quality control for the parent company’s purchases
What it cannot do
- Sign sales contracts in its own name
- Issue official invoices (fapiao) or receive revenue
- Hire local employees directly
RO or WFOE?
If you expect to earn revenue in China within the next year or so, a WFOE is usually the better investment. Converting an RO later means closing it and setting up a new company. We help you choose based on your 12–24 month plan.
Frequently asked questions
Can a representative office hire staff directly?
Local Chinese employees are normally hired through a licensed foreign enterprise service company rather than directly by the RO. Foreign representatives are registered with the office.
Is a representative office tax-free?
No. ROs are usually taxed on a deemed-profit basis calculated from their expenses, and must file VAT and corporate income tax returns.
Reviewed by Admin, Choi & Partners · 3 October 2026. This page is general information, not legal advice.