Representative Office
HK company and other foreign company can establish a Representative Office (RO) in Chinese mainland. RO is not a separate legal entity but is considered to be part of its parent company.
Representative Office is the most basic form of foreign investment and can be very useful, and in some cases even necessary, for most administrative decisions concerning the establishment of a business.
RO act as a business liaison between the parent company and local companies. It often conducts market research, takes care of product promotion,
contacts with prospective customers or partners, makes travel arrangements for parent company representatives coming to China and conducts other non-profit making business activities.
It will, however, not be able to engage in any direct business activities
The advantage of establishing a RO can be found in its inexpensiveness (There is no obligation to bring in any type of capital), the simplicity of the procedure as well as in its short timeframe.
Before set up a RO, you should rent an office in China, prepare the Notarization and banking credibility certificate of the company.