Economy
How Do You Set Up A Representative Office In China
An increasing number of Western businesses are looking to establish operations in China in order to support their marketing efforts and get access to the Chinese market. A business can effectively market its services in China and draw customers by opening a representative office there.
Compared to foreign-invested corporations in China, it is simpler for international businesses to establish representative offices. As a result, China offers several chances for both new and current businesses to grow.
Companies who want to achieve that must pick the right legal framework for their operations in China. Each structure has benefits and drawbacks, so business owners and executives should carefully assess which best suits their aims and objectives.
What Is A Representative Office?
A representative office is a location set up by a business or other legal body to carry out marketing and other non-transactional tasks, typically abroad. Since they are not utilized for actual “business,” representative offices generally are easier to create than a branch or subsidiary (e.g., sales).
The organization that serves as the liaison between the Head Office and the Representative Offices abroad is the Representative Office. Foreign investors have made substantial use of them in developing nations like China, India, and Vietnam.
They are constrained since they cannot invoice locally for products or services. Foreign investors are frequently used in industries including product procurement, quality assurance, and liaison work.
Setting Up A Representative Office In China
Getting appropriate counsel is important for new business people because opening an office in China might be difficult.
The setup and registration procedure may begin once you’ve determined that a Rep Office is the best choice for your company.
Follow the steps given below to set up a Representative Office in China successfully —
1. Get Approval
Choosing a name is the first step in creating an office in China. All kinds of businesses must adhere to tight regulations regarding company names.
Confirming that a suggested name is available and does not break any special letters or word regulations is important. The local AIC (Administration of Industry and Commerce) will review and approve this when filed.
2. Rent Your Office Space
An acceptable leasing agreement must be supplied in order to apply for a representative office.
This has to be for at least a year, be in the city of registration, and be on a permitted commercial (non-residential) property. For a reasonable cost, FDI China may give this address for administrative needs!
3. AIC Application
The local AIC receives the application form and the necessary supporting papers. A business registration certificate typically takes 2 weeks to be granted if everything is in order. The representative office is now operational and properly licensed.
4. Carve Business Seals
As with every Chinese corporation, chops, or seals, are utilized for a representative office. These signify the top tier of business permission. The Public Security Bureau can provide the varied chops required in various locations (PSB).
5. Local Tax Office Registration
Taxes, often computed as a percentage of total costs, must be paid starting on the registration day.
6. Obtaining VISA Permits
The rep office chief representative and any other foreign employee must apply via the PSB and get visas (up to 4).
7. Open A Bank Account In China
For daily business expenses, a straightforward Chinese RMB account is required. We can also file for a foreign exchange registration certificate if foreign currency is necessary.
Advantages Of A Representative Office In China
The quickest and easiest way for foreign companies to begin operations in China is through a Representative Office (commonly abbreviated as Rep Office or RO).
It permits foreign businesses to do market research or run operations in China but prohibits them from making a profit. A Rep Office may often be established in a shorter amount of time than a WFOE.
Your business may maintain an official presence in China by establishing a rep office there. This enables you to host employees here, have a location for meetings with clients and suppliers, and organize work.
Most international corporations may quickly and easily open a rep office because there is no requirement for registered capital.
A representative office is capable of controlling marketing and advertising inside China. As a result, it is possible to find new clients and providers. Facilitated technological and idea exchange with regional groups.
You can carry out Quality Control and other advisory and regulatory tasks relating to the parent company’s business operations in China.
Just make sure to keep an eye on the security of the project. Add a tool or two if you can, and don’t forget to consult with a cybersecurity expert too. Just to be sure, you know.
Know The Limitations
A rep office is a parent business’s subsidiary that functions more like an extension of the parent company than a distinct legal entity.
Since a rep office cannot engage in commerce, it is not regarded as a legitimate enterprise in China. In addition, a parent company’s address must be in a commercial building and have been in operation for at least two years.
By Dipo Olowookere
The level of activity at the Nigerian Exchange (NGX) shrank last week after a turnover of 4.373 billion shares worth N97.783 billion in 110,736 deals compared with the 6.617 billion shares worth N113.224 billion executed in 109,590 deals in the preceding week.
It was observed that the financial services industry led the activity chart by volume with 2.252 billion units sold for N47.204 billion in 44,808 deals, contributing 51.49 per cent and 48.27 per cent to the total trading volume and value, respectively.
The ICT sector traded 1.118 billion equities worth N13.148 billion in 10,413 deals, and the energy segment exchanged 233.891 million stocks valued at N4.726 billion in 7,515 deals.
eTranzact, Access Holdings, and FCMB accounted for 1.921 billion shares worth N22.218 billion in 9,558 deals, contributing 43.93 per cent and 22.72 per cent to the total trading volume and value apiece.
The best-performing equity was Morison Industries with a price appreciation of 32.49 per cent to sell for N4.69, Mecure Industries expanded by 27.35 per cent to N37.95, Japaul gained 26.27 per cent to finish at N2.66, Sovereign Trust Insurance improved by 17.24 per cent to N3.40, and PZ Cussons chalked up 16.19 per cent to settle at N47.00.
On the flip side, Eterna lost 14.93 per cent to quote at N30.20, UAC Nigeria declined by 14.26 per cent to N83.00, eTranzact shed 10.00 per cent to end at N12.60, Transcorp Hotels depreciated by 9.95 per cent to N155.60, and Chellarams crumbled by 9.90 per cent to N13.20.
In the five-day trading week, 49 equities appreciated versus 55 equities a week earlier, 41 shares depreciated versus 29 share in the previous week, and 57 stocks closed flat versus 63 stocks in the preceding week.
At the close of business for the week last Friday, the All-Share Index (ASI) was up by 1.63 per cent to 149,433.26 points and the market capitalisation rose by 1.64 per cent to N95.264 trillion.
In the same vein, all other indices finished higher apart from the banking, AFR Div. Yield, MERI Growth, MERI Value, energy, sovereign bond, and commodity indices, which depreciated by 0.12 per cent, 0.75 per cent, 1.07 per cent, 0.27 per cent, 0.13 per cent, 2.02 per cent, and 0.49 per cent, respectively.
By Adedapo Adesanya
The Federal Inland Revenue Service (FIRS) has issued a statement providing further clarifications following comments and reports on the recent memorandum of understanding between Nigeria and France on taxation.
The MoU, signed on December 10, 2025, at the French Embassy in Abuja by the chairman of FIRS, Mr Zacch Adedeji and French Ambassador, Mr Marc Fonbaustier, on behalf of France’s Direction Générale des Finances Publiques (DGFiP), focuses on key areas, including digital transformation, workforce development, information exchange, transfer pricing, and tackling base erosion and profit shifting.
However, the MoU has been met with resistance from opposition coalition party African Democratic Congress (ADC) as well as Northern elders, which both raised serious questions about transparency, national sovereignty and the safety of Nigerian consumers’ data.
In response, the tax authority, which will become known as Nigerian Revenue Service (NRS) from next year, emphasised that the deal does not grant France access to Nigerian taxpayer data, digital systems, or any element of the country’s operational infrastructure.
“All existing Nigerian laws on data protection, cybersecurity, and sovereignty remain fully applicable and strictly enforced. The NRS, like its predecessor, FIRS, places the highest premium on national security and maintains rigorous standards for the protection of all taxpayer information.”
It said similar MoUs are signed by tax administrations around the world to promote collaboration, knowledge sharing, and the adoption of global best practices.
“The DGFIP is among the world’s most advanced tax authorities, with over a century of institutional experience and deep expertise in digital transformation, taxpayer services, governance, and public finance.
“This partnership simply enables Nigeria to learn from that experience. It is advisory, non-intrusive, and entirely under Nigeria’s control.
“Contrary to misconceptions, the MoU does not displace local technology providers, FIRS and the emerging Nigeria Revenue Service (NRS) continue to work closely with Nigerian innovators such as NIBSS, Interswitch, Paystack, and Flutterwave. The MoU does not include the provision of technical services; it is limited to knowledge sharing, institutional strengthening, workforce development, policy support, and best-practice guidance.
“We welcome robust public engagement on tax reforms, but such conversations must reflect the actual content and purpose of the agreement. Rather than undermining Nigeria’s sovereignty, this MoU strengthens it by helping to build a modern, capable, globally competitive tax administration one firmly in command of its systems, data, and strategic direction.
“FIRS remains committed to transparency, professionalism and partnership that advance Nigeria’s long-term economic development,” it said in a statement.
By Adedapo Adesanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued permits to 28 companies under Nigerian Gas Flare Commercialisation Programme (NGFCP), a scheme that aims to end routine gas flaring to cut carbon emissions and use some of the gas to generate power.
Gas flaring is the controlled burning of natural gas that is released during oil extraction. The initiative marks a major step toward ending flaring and monetising wasted gas.
The projects could capture 250 to 300 million standard cubic feet per day (mmscfd) of gas currently flared, cut about 6 million tonnes of CO₂ annually, and unlock nearly 3 gigawatts of power generation potential, an NGFCP document showed.
Nigeria expects the initiative to attract up to $2 billion in investment and create more than 100,000 jobs. It could also produce 170,000 metric tonnes of LPG annually, providing clean cooking access for 1.4 million households.
The permits follow a competitive bid round that awarded 49 flare sites to 42 bidders after the programme was restructured post-COVID-19 and the Petroleum Industry Act.
Speaking on this, Mr Gbenga Komolafe, head of the NUPRC, during the presentation of the certificates to the 28 companies said, “The NGFCP is a pillar in our quest to eliminate routine flaring, reduce emissions, and enhance Nigeria’s global credibility in energy transition commitments.”
The programme aligns with Nigeria’s Energy Transition Plan and aims to turn flare gas from an environmental liability into an economic asset.
The 28 companies have signed key agreements, including Connection, Milestone Development and Gas Sales Agreements, and now qualify for permits to access flare gas.
Producers will benefit from reduced liabilities, improved Environmental, Social, and Governance (ESG) performance and alignment with the government’s decarbonisation agenda.
Development partners, including Power Africa, KPMG, World Bank’s Global Gas Flaring Reduction initiative, USAID and financiers, have supported the programme with technical and commercial frameworks.
Mr Komolafe said while the permits mark a milestone, engineering, construction and financing must begin in earnest.
“The real work starts now,” the official added. “This programme will create economic, industrial and environmental value while strengthening Nigeria’s energy transition.”
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