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

Creating a representative office in China is subject to many rules and regulations as set forth by the China Business Ventures Law in New York. Generally, a representative office is used to conduct non-profit making activities. The first rule governing the formation of a representative office in China is that the corresponding foreign company must have been in operation for at least two years prior to application. All applications must be made through authorized foreign trade and economic cooperation authorities, with approval granted according to the laws and regulations of the People’s Republic of China. There are also rules governing the operation of a representative office. This includes keeping detailed records of finances for auditing and taxation purposes, and adhering to the nature of the office as a non-profit-making institution. Representative offices must also remain independent from their foreign parent company, and all representatives must obtain a work permit from the government upon arrival. Finally, representative offices are subject to certain restrictions under the China Business Ventures Law in New York. These include restrictions on activities related to product promotion, R&D, and providing services directly to consumers. Additionally, representative offices may not contract with local entities to provide services, transfer funds, or hire personnel. All activities must be conducted in accordance with the laws and regulations of the People’s Republic of China.

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

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