China cracks down on foreign rep offices

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    clpstaff &clp articles

    Number of reps limited to four

    China's administrative regulator has announced a significant change of policy on representative offices of foreign companies by reducing the maximum number of reps to just four. This could force some investors to register joint ventures or wholly foreign owned-enterprises, establish several new representative offices, or train existing reps to do more work.

    The State Administration of Industry and Commerce published its Notice on Strengthening Administration for Registrations of Foreign Enterprises Resident Representative Institutions (关于进一步加强外国企业常驻代表机构登记管理的通知) on January 15 2010, although the changes took effect on January 4.

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