Setting Up a Rep Office in Shanghai

Posted by goshanghai (16 days ago)

I'm thinking of setting up a Rep Office in Shanghai for a consulting firm. Does anyone know the benefit of opening the office as a Chinese citizen and a rep office as a US citizen? I have the option to do either but I am not sure what the pros and cons would be. Would be grateful for your advice.

(I am based in Shanghai)

Find what you are after in our Hong Kong A-Z Directory

Posted by Ms Yeung (14 days ago)

Have you already incorporated a company overseas? If you have already incorporated a company overseas eg Hong Kong, then you can set up a Rep Office in China. The scope of a Rep Office will be limited to marketing and administration. You cannot negotiate contracts and book income into a Rep Office. The benefit is that you can invite overseas investors to join the company.

With regards to setting up a local company, the benefits are: there are no restriction to activities on yr business license, no restriction on renting a pre-approved office ... etc. The downside is that you cannot invite overseas investors to join the company.

Should you require more information, please check out www.a-swiss.com or email info@a-swiss.com.

(I am based in Hong Kong)

Posted by Attorney Sun (Linda) (14 days ago)

If you're a US citizen, it's safer to set up a Rep Office in Shanghai, however, the business scope and account transaction is limited.

(I am based in Shanghai)

Posted by goshanghai (13 days ago)

thanks for your replies. it's a tough decision...

(I am based in Shanghai)