Despite the major limitation of not making a profit in China, there are many good reasons to open a representative office in China. For many companies, this lighter option is the best to go for. Although it cannot make a profit, a rep office can carry out any non-profit doing business activities in China. As the simplest form of Chinese company for non-residents to set up, a representative office has the lowest cost. No capitalization is needed. Although a WFOE in theory now requires no minimum capitalization, in practice capital injection is needed and is hard to extract once made. A rep office does not need this, lowering cost and risk. Much faster setup time and complexity than for a WFOE. A representative office can normally be set up in several months less than a WFOE. Much lower tax and HR administration burden than for a full WFOE. A representative office can hire both local and foreign staff, with employment and payroll handled by an accredited Chinese agency… like FDI China!