What are the procedures for setting up a representative office for a foreign company in China?

Setting up a representative office for a foreign company in China requires a few steps in order to be compliant with China Business Ventures Law in Oregon. The first step is for the foreign company to establish a legal presence in China, typically through the formation of a Wholly Foreign-Owned Enterprise (WFOE) or other approved entities listed in the China Business Ventures Law. The company then must submit an application to the State Administration for Industry and Commerce (SAIC) and receive approval to establish representative offices, such as a foreign enterprise representative office which is a legal entity that is treated similar to a WFOE or a Liaison Office which is a branch of the foreign company that cannot conduct any direct business operations. Once the application is approved, the foreign company must then register with the local tax and social security offices and obtain a business license from the local government. The company must also register its representative office with the Ministry of Foreign Affairs and appoint a legal representative for the office. Additionally, the foreign company should submit any required documents to the local banks or financial institutions to open a local bank account for the office. Once all of the registration procedures are completed, the foreign company can start doing business activities in China such as conducting market research, advertising, and other promotional activities. However, it is important to note that if the foreign company wants to engage in direct business operations in China, the company must obtain a business license that allows for such activities.

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