China representative office, also short as China RO, is one business unit, representing its parent company for liaison purpose with Chinese counterparts. It is one major type of China business for foreign investors, along with Wholly Foreign-Owned Enterprise (WFOE), Joint Venture (JV) and Foreign Invested Partnership Enterprise.
1. Purpose for China Representative Office (RO)
A Representative Office (RO) is popular for those who are willing to enter China at the test period of business and investment or business liaison with Chinese partners like suppliers and demanders.
2. Defining Features of China RO
A RO is not considered to be a separate legal entity, which is generally forbidden from engaging in any profit-seeking activities, and can only legally engage in:
A. Market research, display and publicity activities that relate to company product or services; and
B. Contact activities that relate to company product sales or service provision and domestic procurement and investment.
3. Process of China RO Registration
A. Locate an office for registration;
B. Prepare required registration documentation;
C. Apply business License;
D. Make chop;
E. Open a bank account.
4. Other Related Services
A. Accounting and Taxation
Under the current government system, a RO is usually taxed on gross expenses with the overall tax burden around 11.75 percent of total monthly expenses. If the chief representative is a foreign national, whether they stay in China or not, they shall be subject to individual tax based on the income derived from the RO.
B. Annual Return Filing
A RO is required to submit an annual report between March 1 and June 30 every year providing information on the legal status and standing information of the foreign enterprise, ongoing business activities of the RO, and payment balance audited by their accounting agencies. The registration authorities will issue fines if the RO fails to provide such reports on time or if it provides false information.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
Previous：China Company Registration
Next：China Company Registration Requirements