Timely Enterprise Service Limited
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OVERVIEW
A Chinese representative office (RO) is an office of the foreign enterprise established in China for liaison with Chinese businesses and customers on behalf of its parent company. A RO is not considered to be a separate legal entity. It must be emphasized that a representative office may not carry out direct revenue earning business activities. For example, it cannot sign purchase/sales contracts and cannot receive payment for services, issue invoices. However, a RO can open bank accounts and employ staff to maintain liaison with customers and suppliers. Its headquarters can also sign contracts with its supplier/customers in China in its own name, but not in the name of its RO. Therefore, before a foreign investor establishes its enterprise in China using wholly foreign founded enterprise (WFFE) such as equity joint venture, cooperative joint venture or a wholly foreign- owned enterprise, it could first set up a representative office to test the Chinese market.
ADVANTAGES OF RO
The simplicity and short time required for establishing a RO is the main advantage for its popularity in the Chinese market. Unlike wholly foreign founded enterprises (WFFE), RO are not required to meet strict requirements for items such as registered capital. And the following management is also relative simple and money-saving.
DOCUMENTS REQUIRED
1. The location certificate of head office. If head company business license have register address,then can ignore this point.(Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)
2.Tow legitimate business certificate of head office which more than three years (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)
3. One original copies of Bank reference letter for the head office (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)
4.The memorandum and articles of association or group agreement of the head office (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)
4. The entitled to signatory authorization or proof document issued by the head office (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)–We can provide the mode.
5. The appoint documents about chief representative and representative issued by head office (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)–We can provide the mode.
6. The chief representative and representative identification copy (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)
7. Two original copies of lease with signature and sealed by Housing Management Authority .The signing party should be in the name of general representatives; rent for more than one year and the purpose must be for commercial/office use;–This prepare in China
8. Original copy of identity certification, 8 color photos ;
9.One copy of resume of the chief representative (CR); –We can provide the mode.
THE LEASE
The Chinese governments attach a great importance on the operating address. For a representative office , the address must be for commercial/office use only. Each address allows to be operated by one office. Before registration, the applicant needs to summit the lease and property certification. In addition, the owner of the office should be in conformity with the owner of the property or the lessor. The lease agreement is valid only stamped by the Housing Management Authority uses the contract special purpose stamp.
Note: It is invalid to use if the lease agreement without the stamp and record number of Housing Management Authority.
PROCEDURE
Fill in the application form→sign the agreement→pay deposit→submit all the needed documents→name checking→apply for the industry &commercial license→go to the public security bureau to carve seal→apply for Organization Code License & card→apply for Registration license of State &Local Administration of Taxation →pay the residual balance.
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