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How To Register A Representative Offices(RO)in China?

Updated:2021-12-10 11:52:31    Source:www.tannet-group.comViews:95

The easiest and simplest type of business structure to register in China is a representative office (RO). It is therefore popular with Australian businesses that simply want to get a feel for the Chinese market and environment and make business connections.

There are no registered capital requirements for a representative office, but it does have a limited business scope. Under Chinese laws, an RO is not permitted to engage in any remuneration or profit-making activities and cannot issue receipts or accept payment for services. An RO can only partake in market research and public relations activities that directly relate to the business’s products or services, as well as contact activities that relate to provision of the product and domestic procurement and investment.

Other requirements include:
1.The parent company must have been established for a minimum of two years.
2.It cannot directly hire local employees. Rather, it must engage an official Chinese employment agency.
3.The registration certificate is issued for a one year term, subject to annual renewal.
4.It cannot restructure into a more comprehensive form of foreign direct investment enterprise.

To establish an RO, the parent company must first apply for a business licence by submitting an application with the SAIC, followed by registration with other relevant authorities. In certain industry sectors, an approval from relevant authorities is required prior to submitting the SAIC application. The SAIC registration process generally takes between three and four months and is quite time-consuming when submitting directly to authorities. Australian businesses may prefer to engage a consulting company that has more in-depth procedural knowledge to submit the application.

All applications must be submitted in Mandarin and additionally can be written in English. Documents in both languages shall have equal validity. Approval permits are usually issued within one month of application submission.

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