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Case Upon - Setting Up a Representative Office in China - Restrictions
Building an online business is about as simple as re-building the Coliseum. Type any combination of "online business programs" into Google and watch all of the latest get rich quick scams populate the search engine results. These companies are geniuses at Internet marketing, but they all fail to produce real results that are quantifiable and mea
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A Representative Office should take special care when performing the following activities:
Billing Procedures: A Representative Office may neither collect money for its parent company nor invoice clients directly - this must be handled by the parent company. This is a tricky and ambiguous area, and it would be wise to subject your Representative Office’s billing procedures to the scrutiny of a competent professional in China to ensure that it is not operating outside of its scope of business.
Signing Contracts: All contracts must be signed by the parent company, although a Representative Office can negotiate contracts that are later signed by its parent company.
Employing Staff: Unlike Joint Ventures and Wholly Foreign Owned Enterprises, a Representative Office cannot directly hire employees - it must use an authorized human resources agency. Although most of these agencies are affiliated with local governments, a few are private. Many Representative Offices get around some of the inevitable inconvenien
In general, it can pertain to a company, a non-government organization (NGO), a health club, a student body and anything of the sort. The unifying thread among all these various forms is that they want to achieve something which, in the first place, made them band together.But what does it take to ensure the success of the organization? Muc
A Representative Office should take special care when performing the following activities:
Billing Procedures: A Representative Office may neither collect money for its parent company nor invoice clients directly - this must be handled by the parent company. This is a tricky and ambiguous area, and it would be wise to subject your Representative Office’s billing procedures to the scrutiny of a competent professional in China to ensure that it is not operating outside of its scope of business.
Signing Contracts: All contracts must be signed by the parent company, although a Representative Office can negotiate contracts that are later signed by its parent company.
Employing Staff: Unlike Joint Ventures and Wholly Foreign Owned Enterprises, a Representative Office cannot directly hire employees - it must use an authorized human resources agency. Although most of these agencies are affiliated with local governments, a few are private. Many Representative Offices get around some of the inevitable inconvenien
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Signing Contracts: All contracts must be signed by the parent company, although a Representative Office can negotiate contracts that are later signed by its parent company.
Employing Staff: Unlike Joint Ventures and Wholly Foreign Owned Enterprises, a Representative Office cannot directly hire employees - it must use an authorized human resources agency. Although most of these agencies are affiliated with local governments, a few are private. Many Representative Offices get around some of the inevitable inconvenien
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Signing Contracts: All contracts must be signed by the parent company, although a Representative Office can negotiate contracts that are later signed by its parent company.
Employing Staff: Unlike Joint Ventures and Wholly Foreign Owned Enterprises, a Representative Office cannot directly hire employees - it must use an authorized human resources agency. Although most of these agencies are affiliated with local governments, a few are private. Many Representative Offices get around some of the inevitable inconvenien
The great irony of being in a situation to encounter one of these issues at an informal investigative hearing is that you have established yourself as one of the best and brightest, have or are about to graduate law school and you are about to set forth and pass the bar exam.This interesting situation of having to answer questions about you
A draft Labor Contract Law is widely expected to be enacted soon. Assuming that the enacted law is identical to the draft that is currently in circulation, Representative Offices will be allowed to contract directly with employees during the employees’ first year of service.
Activities Outside the Normal Scope of the Parent Company: Even though corporations in Western countries are generally allowed to participate in “any lawful activity”, in China a Representative Office is conc
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