On January 1, 2002, Regulations on Administration of Foreign Law Firms' Representative Offices in China, promulgated by the Decree No. 338 of the State Council of the People's Republic of China on December 22, 2001, has take bring into force. It means Chinese government has taken more attention and is welcome to the entry of foreign law firm's representative.

A foreign law firm applying to establish a representative office in China and post representatives thereto shall meet the following requirements:

• (1)  It has been in practice lawfully in its home country and never has been punished for violation of the code of ethics of the legal profession;
• (2)  Engaging in the legal service activities other than the affairs on Chinese law, and with all or part of the members independently bearing the external civil liabilities;
• (3)  The representatives of the representative office are practitioner lawyers who are members of the BAR or law society of the country where they obtain their qualifications to practice;
• (4)  The representatives have never been punished for a criminal offense or a violation of lawyers' professional ethics or practice discipline;
• (5)  The representatives have practiced for no less than two years outside of China, The chief representative of the representative office has practiced for not less than three years outside of China and is a partner or equivalent of the said firm;
• (6)  There is an actual need to establish a representative office in China to conduct legal service business.

On the basis of their licenses to practice and certificates to practice, a representative office and its representatives may only conduct the following activities that do not encompass Chinese legal affairs:

• (1)  To provide clients with the consultancy on the legislation of the country where the lawyers of the law firm are permitted to engage in lawyer's professional work, and on international conventions and international practices;
• (2)  To handle, when entrusted by clients or Chinese law firms, legal affairs of the country where the lawyers of the law firm are permitted to engage in lawyer's professional work;
• (3)  To entrust, on behalf of foreign clients, Chinese law firms to deal with the Chinese legal affairs;
• (4)  To enter into contracts to maintain long-term entrustment relations with Chinese law firms for legal affairs;
• (5)  To provide information on the impact of the Chinese legal environment.

A representative office, its representatives, and the law office it belongs to shall not commit any of the following acts:

• (1)  Directly or indirectly invest in Chinese law firms;
• (2)  Making practicing associations with Chinese law firms or Chinese lawyers that share the profits or risks;
• (3)  Establishing joint offices with or sending personnel to Chinese law firms to engage in legal service activities;
• (4)  Managing, operating, controlling or enjoying the equity rights and interests of Chinese law firms.
• (5)  Directly instructing lawyers in the entrusted Chinese law firms, as agreed between both parties.
• (6)  Employing Chinese practitioner lawyers, or its employed support staff conducts legal services activities;
• (7)  Not settling the fees that it collects for legal services within the territory of China;
• (8)  Concurrently a full-time or part-time representative in two or more representative offices.
• (9)  A representative of a representative office be resident in China for less than 6 months each year
• (10)  Other restrictions etc.

Note: Although there are so many restrictions for the Foreign law firms to establish a representative office in China, some restrictions can be mitigated with skills and techniques. And with our local advantages and professional knowledge as well as the good relationship with government, we believe or capacity will assist you in building a success practice in China.