Representative office registration
A Chinese representative office (RO) is an institute set up in China, representing its parent company for liaison with Chinese counterparts. A RO is not considered to be a separate legal entity, it cannot officially practice law in the country and have to act through local firms.
However, it can enter into contracts with its supplier/customers in China in it’s the name of the parent company, but not under the name of RO. A representative office is popular for those who are willing to enter China at the test period of business and investment.
THE PRIVILEGE AND FUNCTION OF RO:
1. The RO enjoys a great popularity among foreign investors since its easier setup & management. Unlike foreign investment enterprises ("FIEs"), representative offices are not required to meet strict requirements for items such as capital injection.
2. The functions of a RO are as follows:
a. It can handle market research, sourcing, project investigation, quality control for parent company, liaison with customers and suppliers
b. It cannot enter into purchase/sales contracts and receive payment for services, issue invoices.
c. A RO can open bank accounts and employ staff for above- mentioned purposes.
d. Apply for work permit and residence permit.
e. A RO is still subject to tax liability, so monthly tax return should be carried out regularly.
f. If a RO is set up in Shanghai, it is qualified to get a car without entrance tax.
WEBOND SERVICES:
1: WEBOND package services include:
a. Both original and duplicate copy of business license; b. Registration license of the Local & National Taxation Bureau. c. Seal carving registration card; d. Organization Code License & card (IC card); e. Three stamps.
2: Service charge: RMB6, 000Yuan. Including the government service charge,.
3: Terms of Payment: The applicant can pay by cash, check or T/T to Webond’s bank account before the service begins.
For more information or any enquiry, please don’t hesitate to contact us, WEBOND, It is our honor to provide you with useful information. |
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