Although Representative Office Registration in China is generally agreed as the easiest entity for foreigners to form in China, why now so many investors choose not RO but WFOE or Joint Venture (JV)? Basically, there are two major issues that make working with RO is unattractive: Many clients presumed that they can switch a RO to a WFOE, then they "can start making money" in China. Well, the truth is the Switch actually involves an expensive shutdown and a brand new WFOE incorporation. Even though RO are not allowed to make profit in China, they are nevertheless subject to taxation. There is a 10% tax on gross expenses of RO, which could be quite high on most cases. A Representative Office (abbreviated RO) is the resident representative office of foreign enterprises in China to engage in indirect business activities within the territory of China, on behalf of the foreign enterprises within the business scope. While, RO is not an independent legal entity as China WF...