Registered address is a must for setting up a business. In the west, it is considered normal to possess a registered office address, either as a mail box for companies, or as an administration center. However, in China and other similar countries, such devolution of the business operations away from the registered address is illegal. This can have repercussions that foreign businesses investing in China should be aware of, and especially when involved with contracts involving the state.
When setting up a company in China, one must submit a document showing its registered address. This proof must be signed by the proposed manager of the company, its directors, legal representatives, shareholders and other senior management officers.
For companies registered in Hong Kong, the United Kingdom, the BVI and other places, the respective jurisdictions expressively provided that: one address can be the registered address of a number of companies. There registration addresses do not need to require the applicant to hire, rent or to sign the lease contract. This is the so-called "virtual office".
However, under China's current laws and regulations, it is not allowed to apply for business registration by using a virtual office as its registered address. According to the Industrial and Commerce Administration and Management regulations, the business license itself is not legitimate and is illegal without the approval of relevant departments, using virtual office as its registered address. The business license will be revoked and the gains will be confiscated.
For foreign investors set up representative offices in China, foreign-owned companies or the joint venture company will send their staff to Mainland China for working. Thus, they have to apply for work visas. The staff of relevant responsible department for approving visa will go to the enterprise's address for site reviewing and doing address authenticity, for the case of virtual office, those employees cannot obtain work visas, and it affects the company's business.
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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.
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