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Shenzhen Company Formation Guide (RO)

Updated:2018-7-9 18:48:53    Source:www.tannet-group.comViews:1355

Shenzhen company formation guide (RO) is a guidance for setting up a representativ office in Shenzhen. If you want to invest in China, you don't just turn to the relevant government departments for certificates and formalities, you turn to TANNET as well. At TANNET, you will be provided with tailor-made service that not only suits your need but also meets your satisfaction.

TANNET’s services are business-orientated and value-orientated. TANNET—serving the world of BPO, ITO and KPO businesses sincerely and professionally.

I. Overview of Shenzhen
Shenzhen is the best place to do businesses in China. Situated in the Southern China, Shenzhen is the first Special Economic Zone in mainland since China has carried out reform and open-door policy 34 years ago. Shenzhen has an area of 953 square km’s and a population of more than 10 million.

Shenzhen is a better city both for living and working over other major cities in China as it is recognized as the youngest and fastest growing city nationwide and worldwide. In Shenzhen, you can enjoy sound infrastructure and intensive industrial chain for manufacturing, trading and value investment. Since Shenzhen is bordering Hong Kong, it is also an ideal place for you to benefit from the “one country, two systems” policy.

II. Concept of Representative Office 
A Chinese representative office (RO) is an institute, representing its parent company for liaison purpose with Chinese counterparts. A RO is not considered to be a separate legal entity. It can not directly engage in business operation and transaction. However, through which its parent company can enter into contracts with its supplier/customers in China with its own name, but not under the name of RO. A representative office is popular for those who are willing to enter China at the test period of business and investment.

III. Name of Representative Office
The Chinese government has a legal name format for anyone who wants to setup a RO in China, the format is: country (area) + parent company name + Shenzhen Representative Office.

IV. Features and Functions of RO
1. The RO enjoys a great popularity among foreign investors because of its easier setup & management. Unlike Joint Venture(JV) and Wholly Foreign Owned Enterprises (WFOE), representative offices are not required to meet stringent requirements for items such as corporate structure and capital injection;
2. A RO can handle market research, sourcing, project investigation, quality control for parent company, liaison with customers and suppliers;
3. A RO can open bank accounts;
4. A RO can employ staff for above- mentioned purposes through a third party;
5. Apply for work permit and residence permit;
6. A RO is still subject to tax liability, so monthly tax return should be carried out regularly.

V. Documents Required for Business Setup 
1. Copy of the business license or certificate of incorporation of parent company; documents indicate the directors and shareholders; copy of M & A;
2. The original and copy of identification documents (ID card, passport) of chief representative, and five color photos and resumes;
3. Appointment letter to the representatives and authorization letter to the relevant person from the parent company to sign in the application documents;
4. Original bank reference letter (from investor's bank) indicating foreign investors' creditability issued by the bank within 6 months;
5. Both the residence address and commercial office address can be available for the Ro formation, but the lease of commercial office between lessor and lessee needed to be endorsed by the Housing Management Authority is necessary if the representatives need to apply for the working visa.

Note: The documents above-mentioned from 1 to 4, should be legalized by the local lawyers or notarized by the relevant government departments, and finally endorsed by the local China Embassy or Consulate.

VI. Tannet's Handling Processing
Prepare all the needed documents→ fill out the application form→ or sign the agreement with TANNET → pay for the services

VII. Tannet's Services
1. Tannet’s Process: submit all the needed documents→ apply for the business license and working card→ go to the public security bureau for stamp-make→ open the bank account. 
2. Service Items include: a. Business license (the Business license, Registration card of Stamp Carving, Tax registration card and Organization Code Certificate are combined into the Business License); b. Three stamps; c. Working card; 

VIII. Tannet's Followup Services
Tannet can provide a series of business follow-up services such as monthly bookkeeping and tax return, license annual return, internal auditing, financial planning and tax layout, China policy & market study, investment portfolio and Pre-IPO services. Other services include domain name registration, webpage design, website promotion, China trademark registration, work permit, residence permit, internet promotion, etc. in order to pave a smoother and wider way for your China business success. 

Contact Us
If you have further enquiry, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to 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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