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According to Promotion Links of London ReindeeR Charm Opening Up to the Outside World and Expansion of Use of Foreign Investment Opinion promulgated on a trial basis by the Shanghai Municipality on November ,the opening of ﹐nonbusiness offices﹑ outside Waigaoqiao is permitted by Waigaoqiao companies. Further,Shanghai authorities actually tolerate a Waigaoqiao Company opening branches in Shanghai. However,these practices are risky,as they are not supported by national law.Should a Waigaoqiao company's entity outside Waigaoqiao especially outside of Shanghai be discovered to engage in business activities,the Waigaoqiao Company may be deemed to have branches.What then,can a Waigaoqiao Company Links of London to establish a viable distribution network? REPRESENTATIVE OFFICES One idea that some Links of London rock star guitaR Charm have in facilitating distribution is the use of representative offices.In principle,this option cannot materialize permanently.PRC law states that representative offices cannot carry out business functions. Although usually not fully complied with by foreign investors,in principle,such a prohibition prevents representative offices from legally conducting the processing of sales.Should a company begin to use its representative offices to distribute products,the offices will look like branches,and risk the wrath of PRC authorities. BRANCHES OF OTHER ENTITIES Another option involves incorporating the establishments of other companies into a Waigaoqiao distribution network.For example,a company based outside Waigaoqiao and belonging to the same Links of London S Charm group as a Waigaoqiao Company would allow its branches,employees,and other facilities to be used in distributing goods on a de facto basis.From a business perspective,while such an operation could conceivably work,it might not be attractive logistically since control of goods would be left up to another company.