Establishing a representative office in China is a common entry strategy. It should be noted that technically representative offices may not engage in direct profit-making activity. Such offices may, however, engage in consulting, market research, and networking. Thus, they might be thought of as cost centers that are a first step in your more formal entry in this market at a later stage. Registration of your office is required in order to lawfully employ Chinese nationals, to open a bank account, to import personal effects duty free, and to import office equipment without an import license, to obtain direct telecommunication lines, to display signs and use business cards identifying the company’s presence in China, and to secure a multiple entry visa. However, because of the need to renew this entity each year, pay about 10% of your gross expense as taxes each year and other cost intensive and regulatory issues - coupled with the substantially lower Wholly Owned Enterprises regulations as the Chinese economy matures - many clients are choosing to skip the step of a Representative Office entirely. When considering entering this market, call us for an evaluation of which may be the most appropriate vehicle for your needs.