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 Adedapo Adesanya
Nigerian businessman and chief executive of Dangote Industries Limited, Mr Aliko Dangote, has unveiled plans for a new phase of investments and acquisitions as the conglomerate pushes towards its target of generating $100 billion in annual revenue by 2030.
Mr Dangote disclosed this while receiving a delegation of senior executives from global investment banking and financial services firm Goldman Sachs, led by co-chief executive of Goldman Sachs International and Global Co-Head of Investment Banking, Mr Anthony Gutman, during a tour of the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited complex in Lagos.
Speaking after the visit, Mr Dangote said the refinery and associated industrial facilities underscore the transformative impact of long-term investment in Africa, stressing that the group’s ambitions extend beyond its current strategic plan.
“No matter how we try to explain what we have built, you cannot fully appreciate it until you see it. But this is only the beginning. We need to look beyond 2030.
“The next phase of our journey will include new investments and acquisitions as we continue to scale the business,” he said.
He added that detailed internal modelling had reinforced management’s confidence that the Group’s target of generating $100 billion in annual revenue by 2030 was achievable.
According to him, the projections were based on conservative assumptions and had strengthened the company’s conviction to pursue an even more ambitious long-term growth strategy.
Mr Dangote also revealed that the strong participation of employees in the refinery’s recent private placement reflected growing internal confidence in the company’s long-term strategy and future prospects.
The Goldman Sachs delegation, after an extensive tour of the 700,000 barrels-per-day refinery, described the project as an extraordinary achievement.
“It is extraordinary what Mr Dangote and the whole organisation have achieved. The ambition, the scale of the project, the quality of the project and the culture of the people is very impressive,” the executives said.
According to a statement issued by Dangote Group on Friday, the delegation was led by Mr Anthony Gutman and included Mr Adib N. Zouein, Co-Head of EMEA Emerging Markets Regional Sales and Head of the Middle East and North Africa region for Global Banking & Markets Public; Mr Ryad Yousuf, Global Head of FICC Sales Strats and Structuring; and Mr Jimi Adesanya, Head of Sub-Saharan Africa Sales (excluding South Africa).
The visitors were received by Dangote; Group Vice President, Oil & Gas, Mr Devakumar Edwin; Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, Mr David Bird; Group Executive Director, Oil & Gas, Ms Fatima Aliko Dangote; Chief of Staff to the President/CEO, Ibrahim Dikko; Group Chief Branding and Communication Officer, Mr Anthony Chiejina; Group Chief Economist, Mr Hassan Mahmud; Group Chief Strategy Officer, Mr Aliyu Suleiman; and Head of Administration, Dangote Petroleum Refinery & Petrochemicals, Mr Musa Bala, among other senior executives.
By Adedapo Adesanya
The Senate Public Accounts Committee has heard that Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from federation crude oil sales proceeds during the same period.
The disclosure came from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Mohammed Bello Shehu, during the committee’s ongoing investigation into the 2021 to 2023 Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports on the oil and gas sector.
According to the commission, crude and petroleum product losses cost N16.2 billion, pipeline repairs accounted for N22.05 billion, while strategic stock holding attracted N6.75 billion.
The revelations come against the backdrop of Nigeria’s long-running fuel subsidy regime, which successive governments maintained to keep the pump price of petrol artificially low despite mounting fiscal pressures.
Over the years, subsidy payments consumed trillions of Naira, significantly reducing revenues available to the three tiers of government and contributing to widening budget deficits.
The issue reached a turning point in May 2023 when President Bola Tinubu announced the removal of fuel subsidy during his inauguration speech, declaring that “fuel subsidy is gone.” The decision followed years of concerns over the rising cost of the programme, allegations of fraud, and repeated recommendations by fiscal authorities and international financial institutions that the subsidy had become unsustainable.
The removal triggered a sharp increase in the pump price of Premium Motor Spirit (petrol), leading to higher transportation and living costs across the country. In response, the federal government introduced a series of palliative measures, including cash transfers, support for mass transit, and wage-related interventions, while arguing that savings from the subsidy would be redirected to infrastructure, education, healthcare, and other critical sectors of the economy.
The commission also argued that the current method of calculating the 13 per cent derivation fund undermines the constitutional intention of the policy.
Meanwhile, the committee stood down the Niger Delta Development Commission’s presentation until next Wednesday to allow lawmakers review its submission.
The committee also expressed displeasure over the absence of the Auditor-General of the Federation, warning that he must appear before lawmakers next Tuesday or face compulsory appearance through the constitutional powers of the National Assembly.
By Adedapo Adesanya
Businesses in the country expect the Naira to gradually appreciate against the US Dollar between now and January 2027, according to the Central Bank of Nigeria’s (CBN) July 2026 Business Expectations Survey Report released on Thursday.
The report showed that the Business Confidence Index (BCI) remained positive throughout the review period despite perceived macroeconomic challenges. It noted that all sectors expressed optimism about the economy, with the electricity, gas and water sector posting the highest Business Confidence Index of 59.4 points and the strongest expansion prospects for August 2026.
According to the report, “In July 2026, the Business Confidence Index was 5.7 points, reflecting continued optimistic sentiment among formal businesses.”
It attributed the positive sentiment mainly to increased demand (22.3 per cent), economic diversification (21.4 per cent), and improved access to finance (15.0 per cent). However, respondents identified inflation (27.7 per cent), energy-related challenges (23.4 per cent), insecurity (22.4 per cent), and heightened geopolitical uncertainties (16.5 per cent) as the major factors weighing on business confidence.
On the outlook by broad sector, the central bank said confidence remained positive across all sectors in July. The Industry sector recorded a modest improvement, with its index rising to 11.5 points from 10.5 points, while the Services sector increased to 3.6 points from 2.9 points.
By contrast, the Agriculture sector recorded a significant moderation, with its index falling to 3.4 points from 12.2 points.
Despite this, the apex bank said the six-month outlook remained upbeat, with confidence indices across all sectors indicating positive expectations over the review period.
On the macroeconomic outlook by region, the report noted a divergence in sentiment, with businesses in Northern Nigeria expressing stronger confidence than their Southern counterparts in July. Nevertheless, respondents across all regions maintained positive expectations for August.
