Set up a representative office in China, the full name is a foreign enterprise representative office, also called the permanent representative office of foreign enterprise in China. Resident representative office of a foreign enterprise only can engage in nondirect business activities. Representative foreign enterprise to do contact, product promotion, market research and technical exchange within the business range.
Inter-Area has years of experience can provide clients not only registration of foreign representative, company or branch, but also complete service from consultation, application document making, local industrial and commercial registration until accounting service agent. Inter-Area provide one-stop service for the clients who want to set up a company in Shanghai, Shenzhen or Xiamen, make investors to truly target local businesses also take care of various business affairs, investors can focus on their business.
Specification of setting up the representative office in China
The requirement of setting up an office in China for foreign company：
1.Registration in the resident country/area m for more than two years.
2.No bad record in violation of Chinese laws.
3. Have a good record or certificate of business activity in the resident country/area.
4.公The company registration certificate needs the notarization of the local authority, the Chinese embassy certification, and the credit certification.。
（No year limit of Hong Kong, Macao and Taiwan company and only need document certification, but Hong Kong company needs lawyer notarization.
The rule of name office in China
Country + head office name（Chinese）+【area name】representative office
（Head office name must be the nature of the limited company, the company name is the best ending. Business association also can be registered, but it needs the competent department approval.
1. Beijing XXXX consulting limited company Shenzhen city representative office.
2. XXXX(Shanghai) trading limited company Xiamen representative office.
Characteristics and notices of setting up a representative office in China
China representative office also called the office, set up China representative office can not directly to the business activity, failure to sign commercial contracts, issue orders, issue invoices, collect receipts, hold inventories, etc. Representative office only can a cooperating main organization (foreign company) to do Non-commercial activities such as China market information collecting, contact, market promotion, etc.
- Representative office address must be the true address, the necessary information is：house purchase contract, the developer's pre-sale permit copy, house purchase invoice.
- Tax payment：income tax and sales tax（due to company cost to deduct）. Due to《State Administration of Taxation about foreign enterprises resident representative office notice of tax-related issues》approved the taxation of foreign representative office, convert the income tax according to cost.
Taxable income = Expenditure/(1-15%)*10%(interest rate)
Payable enterprise income tax = Expenditure/(1-15%)*10%Profit * interest rate
Sales tax = Expenditure/(1-15%)* interest rate
- The number of a representative shall adaptive with business development activity, The number of representative organization’ representative（including chief representative）must lower than 4 people. For the number of representative more than 4 people‘s representative organization, in principle, only representatives are allowed to be canceled, not allowed to add.
Setting up a representative office in China
QWhat is the function of setting up a representative office in China?
A Setting up representative in China for the sake of enterprise to collect marketing information and development in Beijing, Shanghai, Shenzhen, Xiamen, etc. Also can be a contact unit for foreign enterprise in China. Registration of setting up representative office must follow China regulations.
QIs there any limit of setting up a representative office in China?
A Can not do the business behavior in China and effect payments, there will be an only expenditure. Have to do an annual extension and renew authentication information of the offshore company.
QCan representative office do profit-making behavior in China?
A China representative office cannot do profit-making behavior, billing invoice, accept an order, deposit stock, receipt, etc. In principle, there will be only expenditure and no income.
QWhat tax should be paid for setting up a representative office in China?
A Because China representative office cannot have business behavior, the expenditure of the representative office is used as the accounting standard, the payable tax is about 10% of the expenditure of the representative office.