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Consultation of Enterprise Registration |
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Accounting and Taxation |
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Entry Visas and Residence Services |
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Auditing and Capital Verification |
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GZ Tianhe Office: Rm.1603
West Tower,Xingchen Building, 172 Huasui Rd., Zhujiang New Town, Guangzhou,
China |
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Rm. 23A8L, 24 floor, DaXin Building 538 Dezhengbei
Rd., Yuexiu District, Guangzhou |
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SZ Futian Office: Rm.9D,
Dangui Pavilion, Huamaoxin Garden, 7001 Honglixi Rd., Futian District,
Shenzhen
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DG Nancheng Office: Rm. Rm.
A1008 Bai An Center, First International Building Phase II, Yuan Mei
Dong Rd., Nan Cheng District, Dongguan |
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E-mail:
info@gzcsg.com |
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You are here:Registration of enterprise > > |
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The Analysis of Representative Office
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Reading :1441 Foundation time:2010-12-16 Refresh time :2010-12-16 |
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1. THE CONCEPT OF REPRESENTATIVE OFFICE A Chinese representative office (RO) is an institute setup in China, representing its parent company for liaison with Chinese counterparts. A RO is not considered to be a separate legal entity. It can not directly engage in business operation. However, through which its parent company can enter into contracts with its supplier/customers in China in its own name, 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.
2. REPRESENTATIVE OFFICE NAME The Chinese government has a name format for anyone who wants to setup a RO in China, the format is: country (area) + parent company name + Guangzhou Representative Office
3. THE REQUIREMENT OF PARENT COMPANY
According to the Chinese policies, since 1st Jun 2010, the parent company should operated more than 2 years.
4. 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 stringent 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.
5. THE TAXATION OF THE RO
The RO should pay the income tax and sales tax to the Chinese government, the total integration tax rate is 10.68% of all the RO expense.
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Source:Guangzhou Cucheng Service Group
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