Set-up of Financial Services Company Representative Office

Business Case
Our client is a global brokerage firm providing institutional clients with efficient access to financial and commodity markets around the world. It holds memberships on the major worldwide futures and equity options markets and consistently ranks among the largest in customer volume on the top global exchanges. Their offices are located in the Americas, Europe, and Asia.

Up to now, no person or entity outside China has been allowed to trade on a Chinese futures exchange, but recently the China Securities Regulatory Commission (CSRC) has begun to consider allowing qualified overseas investors to participate in this market. Our client wanted to seize the early mover initiative by stepping into the China market, and decided the quickest and most efficient way to get closer to this emerging market was to form a liaison entity in China, known as a Representative Office.

Reese Partners Role
Through its Chicago office, Reese Partners served as the overall project manager to set-up the Representative Office in China, and coordinated communications and authorization requirements with the client's U.S. headquarters. Reese Partners consultants in Shanghai completed most of the day-to-day registration requirements on behalf of the client, and coordinated the many activities associated with establishing a business entity in China with the client and their other professionals. Over the course of the typical six month registration process, Reese Partners conducted the following activities:

» Licensing
	—	Prepared and coordinated the required application and registration materials, including translation of documents for review by the client's U.S. senior management
	—	Coordinated the preparation for business relationships with CSRC in Shanghai and other Chinese government agencies
	—	Selected and directed a local licensing agent with a good government relationship network
	—	Coordinated the license process and obtained work permits for the Chief Representative
» Office Set-up
	—	Developed site recommendations and assisted in lease negotiations
	—	Coordinated build-out of the office and selection and installation of furnishing and equipment
	—	Coordinated setup of all office services and functions
» Human Resources and Operations
	—	Assisted with the normal operations of the Representative Office
	—	Recruited an Administrative Assistant for the Chief Representative Officer in Shanghai
	—	Coordinate development of relationships with accounting, banking and human resource services

Client Success
Reese Partners successfully obtained all the necessary permits and licenses, set up the physical office, and coordinated employment of a highly qualified Administrative Assistant. Other deliverables included:
» Obtaining registration in Shanghai as a financial company Representative Office with the business scope of engaging in liaison work and exchange of financial market information
» Acquiring full sets of certificates from government bureaus
» Locating and setting-up an office in Shanghai close to the Shanghai Futures Exchange Center
» Initially conducting the normal operating requirements of the Representative Office, including post-registration reports and filings, while establishing relationships with professionals to provide these services

Results
The client was able to focus on developing its core business in China while Reese Partners handled the coordination and related activities to obtain the Representative Office license and physically set-up the client's China office. They now have a functional office and staff operating as a legal business entity in Shanghai equipped to collect and monitor China trends and regulations, build direct relationships with potential partners and government officials, and help introduce international financial management concepts.