Foreign companies keen on exploring the viability of doing business in China , or interested in using China as a launching pad into the Asia Pacific, may wish to set up a Representative Office (RO).
A foreign company may establish a representative office in China to undertake promotional and liaison activities on behalf of its parent company. The office, however, directly or on behalf of its parent company, must not be engaged in business, conclude contracts, provide consultancy for a fee, undertake transshipment of goods, or open or negotiate any letters of credit.

The benefits of establishing a representative office in China is listed as follows:

         »Registration off an RO should be considered when a foreign company wants to test the business environment in China before making investment decisions.
         »Develop potential business alliances
         »Establish business relations with local government and clients
         »Prepare the process for the registration of the business licenses and import/export licenses
         »Maintain a long-lasting clients relations