This guide comes in two parts, a narrative part (A) and a chart part (B). Take your pick.

A. In words
Foreign companies are permitted to open representative offices in China. Legally, offices may only be established for liaison purposes. Activities must be limited to the provision of services that do not give rise to earnings or profit. The permissible activities of representative offices include the following:
• investigating and collecting market information;
• providing introductory services to potential buyers and sellers such as setting up meetings and passing on price and technical information to Chinese customers;
• assisting in making arrangements for trade visits to China;
• co-ordinating with the parent company and other associate companies and affiliates.

Foreign enterprises wishing to establish permanent representative offices in China must apply to the responsible authority for approval and complete formal registration formalities. It is impossible to establish a permanent representative office without completing these procedures. The responsible authorities are as follows:
• trade, commerce, manufacturing and cargo transportation agencies; applications should be filed with the Ministry of Foreign Trade & Commerce (MOFCOM);
• banking applications should be filed with the People&Mac226;s Bank of China (PBOC);
• life insurance, non-life insurance, re-insurance and insurance brokerage applications should be filed with the China Insurance Regulatory Commission (CIRC);
• maritime transportation and maritime transportation agencies applications should be filed with the Ministry of Communications;
• air transportation applications should be filed with the Civil Aviation Administration of China (CAAC):
• other trades applications should be filed with the ministry, commission or administration responsible for the business at hand.

The company (called "enterprise" in China) wishing to set up a representative office should submit the following in application:
• An application signed by the president or managing director of the enterprise, which should include the name and address of the representative office to be established, information on senior personnel, the proposed scope of business, and the proposed duration of tenure;
• Certificates proving the credibility rating of the enterprise issued by the appropriate financial institution regulating the enterprise in question or which has a close business relationship with the enterprise in question;
• An official licence to do business issued by the responsible authority of the country or region where the enterprise is based;
• Letters of authorisation for the personnel with the representative office as appointed by the enterprise and the respective curriculum vitae of the personnel;
• Banking and insurance companies are subject to additional detailed requirements which include educational and professional qualifications and experience and Chinese language ability for personnel; annual statement of assets and liabilities, annual statement of losses and gains, the charter of incorporation and the list of board members.

On approval, the enterprise will be issued a certificate of approval. Within 30 days of approval the chief representative of the enterprise should in person submit the certificate of approval to the State Administration for Industry and Commerce for formal registration. Upon payment of a fee a business registration certificate will be issued.

The enterprise must also register with the Local Taxation Bureau, the State Taxation Bureau, the Custom House and the Public Security Bureau. The enterprise should also open a bank account with the Bank of China.

In our experience, the process of establishing a representative office in China takes between two and three months.

Part B: In diagrammatical form
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