I intend to set up one branch office in china for developing the market, ask the help?

I intend to set up one branch office in china for developing the market. Someone suggested me to open a representative office not a company. But I don鈥檛 know what the difference is between the office and the company? Can anyone give the reference on this problem? My company is one trading company and importing the electric products to America.

RO (representative office) and FIE (Foreign investment enterprise/company) are the two types of branches that foreign investor can open in China.
RO is not an independent entity in legal words, but FIE is an independent entity that can conduct material business activities. RO can only collect the market information, transfer the information between the mother company and the clients and inspect the products quality and delivery, BUT cannot conduct the material business activities. FIE can conduct the material business activities, such as sale & buy products, import & export cargos, invest to other projects, possess the property and arrange the big capital inside China etc.
RO cannot grow up to a big office (RO can only employ several staff) but FIE can grow up to be a big company. RO can only manage a little capital limited to the cost of itself but FIE can manage and operate the capital much more than RO in China.
RO cannot open subordinate company (branch) but FIE can do that.
Setting up one RO is more quick (1-2 months) and less cost than setting up FIE(2-4 months).
I am a legal administration manager of the law firm in China. If you intend to get the help from us, you can e-mail me to mar06.assistant@yahoo.com.cn I can provide the counselor referrals to you.
For more FIE details, you can also check my latest answer to:
Where can I get the help to set up one company in Guangzhou China?

The basic difference between compnay and representative office is htat... in case of companu it will registrered in that country but no registration is require for representative. A representative can be a person who will act as ur representative while doing is own work. For example Mr.A. is in americe and Mr.C in China. Mr. A want Mr.C to be his reprensentative in china. In that case no registration is required it will a kind of mutual agreement wether written on Oral expressed. As a reprenstative Mr.C will get some remenuration as agreed upon.

In case of company u will have to register it according to the policy of China. The establishment cost will be higher as premisis will be require for office and generally the staff is necessary.