What are the rules governing the formation and operation of a representative office in China?
In Washington, the rules governing the formation and operation of a representative office in China are outlined in the China Business Ventures Law. Generally, the governing law requires the entity seeking to form the representative office to register with the Chinese government and obtain a business license. The entity must submit various documents associated with its purpose, personnel, physical locations, and budget plans, among other things. Once approved by the Chinese government, the entity is allowed to establish a representative office. The operations of the representative office must be limited to activities related to its stated purpose; these activities must not involve revenue-generating activities or foreign exchange transactions. All activities of the representative office must be registered with the Chinese government and comply with relevant regulations. Additionally, the representative office must have representative personnel appointed by the parent company to manage its operations, and must file regular reports to the Chinese government regarding its activities. The Chinese government may also impose various other restrictions on the representative office, such as limits to the number of personnel it may have or the activities it may undertake.
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