Are rep offices in China redundant?
Most likely, the answer is NO, since redundant is too strong a word.
But the Government made rules stricter and stepped up the enforcement of the rules because many ROs were used outside their business scope;
As an example, RO have to be reregistered once a year and have tighter restrictions in terms of employment.
So if you really only need a representation in China for marketing and market research an RO can still be the right choice
Bear in mind, that an RO leaves you no flexibility for the development of your business and for other activites.
Plus, an RO has no tax advantage towards a WFOE anymore, on the contrary, most likely it will have a higher overall tax burden.
If you’d like to find out more information about this topic, please visit our website. www.fiducia-china.com
Thaddaeus Mueller, Associate Director of Business Development/Personnel Management.
Thaddaeus’ area of expertise is to find innovative solutions for clients seeking to establish their presence in Hong Kong or China. He evaluates situations and strategies to identify the right tools and services and is experienced in advising both SMEs and large companies from many different parts of the world. He also manages Fiducia’s executive search in finding and placing high-level professionals for various industry leaders.
Thaddaeus is a frequent speaker at China-focused events in Hong Kong and Germany on topics ranging from setting up viable sourcing strategies for SMEs in Hong Kong and China to identifying suitable acquisition targets in China. His articles are printed regularly in various publications, such as China Contact, Asia Bridge and in Fiducia’s China Focus newsletter. Thaddaeus is Chairman of the board for AGN Asia Pacific, advisory board member of the China Sourcing Information Center and a member of the Europe Committee of the Hong Kong General Chamber of Commerce (HKGCC).
Thaddaeus joined Fiducia in January 2005, prior to which he worked in the automotive industry and for the fabrics and fibres division of W.L. Gore, a large US technology company. Thaddaeus holds a Master’s degree in Economics and Business Administration from the Catholic University of Eichstaett, Germany. During his studies he has completed research on the automotive industry in South Africa and studied at Stellenbosch Business School, South Africa. Thaddaeus is a native German speaker and speaks English fluently.