A representative office is an office established by a company to perform marketing, quality control and other non-transactional operations in China which is generally easier to establish than a branch or subsidiary, as they are not used for actual "business" (e.g. sales) and therefore there is less incentive for them to be regulated.

Pros

•  No share capital is required;
•  Setup in less procedure;
•  Can exchange foreign currency into RMB;
•  Can hire local staff via government admitted agents;
•  Simple company and financial structure.

Cons

•  Not business entity;
•  Tax rate is high;
•  No invoicing;
•  Must be investment in company;
•  Mother company needs to be at least 2 years old.