|
The first way for a foreign company can establish itself in China, is through the establishment  of a Representative Office (RO).
The ODM Group set up a Rep office in Shanghai in 2008. It is not a separate legal entity but is considered to be part of its parent company, in this case our Hong Kong headquarters.
It is the most basic form of foreign investment and can be very useful, and in some cases even necessary, for most administrative decisions concerning the establishment of a business.
For companies who have complimentary business to the ODMgroup we are able to form a less formal joint venture whereby our clients/partners can avail of our infrastructure to employ or base a few key staff in China. This simplifies the administrative tasks and expensive set up costs.
Setting up an office in China means renting of office space in a dedicated Rep. office compliant building, the employment of Chinese personnel, the opening of bank accounts in name of the company, etc. The advantage of establishing with The ODM Group can be found in its inexpensiveness (There is no obligation to bring in any type of capital), the simplicity of the procedure as well as in its short time frame for implementing.
The ODM Group will act as a business liaison between the parent company and local companies. It often conducts market research, takes care of product promotion, establishes contacts with prospective customers or partners, makes travel arrangements for parent company representatives coming to China and conducts other non-profit making business activities.
Want to set up your China Representative Office on your own? 
Setting up a representative office in China is considered as one of the most popular and low-cost solutions that allow foreign investors to explore the business opportunities in China. A representative office can carry out certain "in-direct operation" activities and their scopes will be limited to:
A) Market research;
B) Quality checking on purchasing;
C) Administration on sales between China and parent company
There are a lot of hidden costs for seting up Representative Office in China such as changing the Chief operations (RMB 10,000), changing office location (RMB 20,000). Hidden charges should be well studied and understood before deciding which option to take. Depending on your trade, city where operations are set up etc... different Govt taxes will be applied to operations.
Most importantly, a rep office cannot legitimately do the following.
- Cannot Employ staff directly - must employ people through HR service.
- Cannot Invoice and collect money from 3rd parties in China.
For larger operations consider a WFOE.
| 
Rep Office
