What are the rules governing the formation and operation of a representative office in China?

The rules governing the formation and operation of a representative office in China are set out in the China Business Ventures Law in Maryland. According to the law, representative office establishments must first be registered with the Ministry of Commerce in China and must obtain the approval of the China local taxation office. The representative office must be supervised by a corporate entity in Maryland or in the United States. Furthermore, the representative office will only be allowed to conduct certain activities such as conducting market research, advertising and public relations, and may not engage in any form of income-generating activities. The representative office is also required to obtain a business license and other relevant certificates from the Chinese government. Additionally, the representative office must comply with Chinese labor laws, pay taxes, report financial activities to the Chinese government, and appoint a responsible person to assume full responsibility for the office. Finally, the representative office in China is prohibited from engaging in activities that are outside of the scope of the territory, activities that are not in compliance with local laws or regulations, and activities that would harm the interests of China.

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