1、The explanation of foreign commerce representative office 代表处的定义
The representative organization is established in China by foreign commercial enterprise which is a representative parent company’s business connection institution in domestic(本国). So foreign commerce representative office does not an independent legal person entity. It must be pointed out that foreign commerce representative office does not take part in any business activity that can get benefit property directly. e.g. it may not sign any purchase or sale contract, accept any charge for service, invoice, overseas remittance. But the foreign commerce representative office may open a bank account, and own staff to realize(实现了解) the aim for business connection. The corporate headquarter(总部) may sign with the customers and suppliers(供应商) of foreign commerce representative office, only based on the corporate headquarter, but the foreign commerce representative office. So, it is very necessary to establish a foreign commerce representative office in order to sound out(试探,打探) China market before commerce representative office establishing joint venture enterprise, independent enterprise.

 

2、The advantage of foreign commerce representative office(代表处的优势)
Simple and rapid registration is the main reason for foreign commerce representative office in China.. The difference from the wholly foreign-owned enterprise is that the foreign commerce representative office does not have strict requirement for fund investment. So establishing foreign commerce representative office is mainly a series of application procedures(步骤) . Once all the application materials prepared, the Examination and Approval(审批) by government will finish within 30 working days.

 

3、Business scope (经营范围)
Foreign commerce representative office does not take part in any business activity with users or customers that can get benefit property directly, also it can not sign any purchase or sale contract, so the activities of foreign commerce representative office took are “indirect business activities”.
E.g.
Business connection;(业务联系)
Product show;(产品展示)
Market research;(市场调查)
Scientific technology exchange(技术交流 )

 

4、Team and termination (经营期限及延期)

In China, the longest period for a foreign commerce representative office is three years (insurance(保险) company is five years, and the bank’s foreign commerce representative office is six years), the period started from the date of passing the examination and approval materials by Examination institutions. If exceeded the longest period, the foreign commerce representative office should hand in the annual report(年度报告) and application  related examination and approval department in 30 days if planning to manage.

 

5、Tax case (税收)
Generally speaking, according to the income tax(所得税) law of the People's Republic of China and local business tax, foreign commerce representative office should pay the wholly foreign-owned enterprise income tax and business tax, but the way to pay is different. The common(普通的) one was additional cost basic. For example, in April 2004, tax revenue in the evaluation way is appro. 10% of operating expenses of foreign commerce representative office. Income tax and business tax on Enterprises is collected to foreign commerce representative office prior to 15 days of each season.
According to related tax law in China, if satisfied some condition, foreign commerce representative office may apply free-charge to the related department.

 

6、Host qualification (投资方)
Foreign (region(地区)) merchant(商人)、manufacturer(制造商)、logistics agencies、contractor(承包人)、consulting company(咨询公司)、advertisement company(广告公司)、investment company(投资公司) and lease company(租赁公司), and other foreign (region) enterprise or economic organization by examination and approval department

 

7、Does not cancel examination and approval industry 特殊行业审批

⑴.Traffic department  交通部门

Foreign maritime enterprise、shipping agency enterprise、multi-modal transport enterprise and other enterprise and organization related maritime, the foreign enterprise and foreign marine check organization dealing with highway cargo transport should get the approval by the Traffic Department of the People’s Republic of China if establishing an office in China.

⑵.The Civil Aviation Administration of China 航空部门
Foreign air transport enterprises should get the approval by the Civil Aviation Administration of China if establishing an office in China.

⑶.Judiciary  法官,律师事务所
Foreign law firm should get the approval by China’s Judiciary if establishing an office in China.

⑷.The People's Bank of China 银行企业
Foreign financial institution should get the approval by the People's Bank of China if establishing an office in China. Foreign financial institution mainly include the Bank of Commerce, the Bank of Investment, Merchant Bank, Stock company, Fund Management company, Foreign Exchange Broker company, the Credit Card company, Finance Leasing company, etc. of oversea registered company.

⑸.Insurance Supervision Commission of China 保险公司
Foreign Insurance institution should get the approval by Insurance Supervision Commission of China if establishing an office in China. Foreign Insurance institution should get the approval by the People's Bank of China if establishing a permanent representative institution in China. After the Reforms of Government Institutions of China in 1988, the Approval was transferred from the People's Bank of China to new Insurance Supervision Commission of China.

⑹.Tourist Administration of the People’s Republic of China 旅游公司
Foreign government tourist department, the international tourist organization between governments and foreign tourist enterprise should get the approval by tourist administration of China if establishing an office in China.

⑺.Financial Department
Foreign accounting firm should get the examination and approval by China registered accountant association or Authorization Authorities and China financial department issued the approval certificate if establishing an office in China.

 

一、The following materials are required: (需要提供的材料)
1、Copy of Business Opening Certificate of the foreign company (notarization by the Chinese consulate in the corresponding country is required; if the company is from Hong Kong, notarization by the China Legal Service (Hong Kong) Co., Ltd. is required);
2、Original (1) of Bank Credit Certificate of the foreign company;
3、Resume in Chinese (copy), passport (copy), and photos (2) of the Chief Representative Officer;
4、The introduction of the company’s case (1 in original)
5、Passport (copy) of the Legal Person of the foreign company;
6、Other concerning documents; (to be prepared by our party)
Chinese translation should be available for the above documents.

 

二、Procedures and process 办理步骤

Pre-registration - handling of Registration Certificate - Organization code - Making of stamps- Tax Registration Certificate - Statistical Certificate.

III. Schedule for handling procedures: 办理时间
1、Pre-registration: five working days;
2、Handling of Registration Certificate: five working days;
3、Handling of Organization code and Making of stamps: three working days;
4、Subsequent procedures for tax registration: fifteen working days

Note: The above schedule is for reference, and the actual schedule shall be based on that examination and approved by the government department.

Fee to be Charged by the Government for Representative Office Registration 政府费用

1、 Registration Certificate RMB 820
2、 Organization code RMB 228
3、 Tax Registration Certificate RMB 20
4、 Making of stamps RMB 500
5、 Statistical Certificate RMB 20
6、 Foreign Exchange Registration Certificate RMB0