The Representative Office (RO)
Pros
- Local presence helps to build up your brand.
- Least capital injection is required. RO is not a legal entity, there is no minimum share capital required.
- RO can handle market research, sourcing, project investigation for its parent company, who will in turn execute the trading functions.
- RO can hire local staff.
Cons
- Limitation in activity. No trading or invoicing is allowed.
- Local staff need to be recruited via government authorized agents.
- Although not a profit entity, cost expenses still attract tax liability.
Ways of getting around the disadvantages
- If trading is involved, local Import and Export agent can be hired. The trading can be managed by the RO, but executed by the parent company and the local Import and Export agent.
- A reputable local Accountant Agent can give advice on tax issues.
Requirements:
The Parent Company
- The parent company who wants to set up a Representative Office in China can be from any country outside China , but it has to be established for at lease one year.
- The RO application has to be submitted with the last 6 months' bank statements, where the balance should not be less than 10,000 pounds sterling equivalent. (Please contact us to see how we can help you on this matter)
- An office to show your address in China is necessary. The rental lease has to be at least 1 year. (Please refer to our Virtual Office in China should you have concerns about this matter)
The Paper Work
( Please note that paper requirements change time to time, Contact Us for the latest requirements)
From the parent company
- Certificate of Incorporation
- Members' Register
- Directors' Register
- Last filed Annual Return
- Last filed Return to Tax Department (Inland Revenue)
- Company / business profile and reason of setting up RO
- Minutes of Board Meeting to set up RO
- Minutes of Board Meeting to authorize Chief Representative
- Bank reference letter and past 6 month bank statements
- An application letter to Foreign Economic Relations & Trade Commission
- An application letter to Administrative Council of Industry & Commerce
For the appointed Chief Representative of your Chinese RO
- Passport copy
- Photos
- Resume
All the above documents need to be in both the original language and most of them need to be translated into Chinese. Please check here For our Chinese translation service. Our experts will guide you to prepare your documents and your application letters.
Time
According to your circumstances and the location of your RO, it can take up to a month to apply for your RO.
Basic Maintenance
- Depends on the office rental lease, a maximum of 3 years permit renewal can be obtained.
- Monthly and annually tax reports filing is required. An audit is also required for the foreign RO.
Our Fees
Fees vary according to the location of your RO and your requirements. Please feel free to Obtain a Quote with your desired location of your RO and your requirements.
To understand how we quote, please see Fees and Quotes .
Please visit our Resource Centre for information on:
A Brief Introduction to the Development of China Development Zones
Lists of China National Economic and Technological Development Zones
Advantages and Characteristics of National Economic and Technological Development Zones
Policies on Foreign Investment
Provision on Guiding Foreign Investment Direction
Tax Policies Concerning Foreign Enterprises in China
Examination and Approval on the Foreign Establishment
Catalogue of Encouraged Foreign Investment Industries