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A Representative Office (RO) is a non-legal entity representing its parent company that is set up in China to liaise with businesses and customers. It is not allowed to directly conduct business, issue invoices on its own or receive income from services performed.
However, RO can function as a liaison between its home company and related industries in China, conduct market research, promote products and perform preparatory activities for future business development, which can be considered as a first step to enter into the China market.