Hainan Business Setup (RO)

Hainan business setup (RO) refers to set up a representative office in Hainan. An RO is the resident representative office of foreign enterprises in China to engage in indirect business activities in mainland China on behalf of the foreign enterprises within the business scope allowed. When a foreign company decides to try and sell to the Chinese market, there are several options, working through an agency or distributor, or registering an RO.

The easiest and most economical way for small and medium-sized companies to have a legal presence in China is to establish an RO. The purpose of an RO is to facilitate the liaison between the parent company and businesses and customers from China. In addition, an RO can on behalf of the parent company create market contacts, carry research headquarters, and assist in developing business relations.

Why Set Up a Representative Office in China?
Setting up a representative office in China is a good way to enter into Chinese market effectively with low cost. It provides more chances to know Chinese market.

Representative office can master various useful information by market research, such as consumer behavior mode, market requirement, market custom, local laws and operating cost. At the same time, Representative office also can supervise other joint venture enterprises and how they work, so as to establish the relationship with partners and customers.

Function of Representative Office in China
(1) It can handle market research, quality control for parent company in China, liaison with customers and suppliers, keep good relationship with them;
(2) It cannot enter into sales and purchase contracts from China supplier and customer, can not generate income or issue invoices;
(3) A China RO can open bank accounts in China for receiving operation fund from foreign company and employ staff for above- mentioned purposes;
(4) Apply for China Work Permit and Work Residence Permit for foreign staff;
(5) A RO can not conduct business but still subject to tax liability.

Procedures for setting up an RO
1. Securing an office for registration;
2. Preparation and collection of relevant registration documents;
3. File an Application to Administration Industry and Commerce (AIC);
4. Registration certificate and working card application on-spot at AIC;
5. Chop-making and filing with Public Security Bureau;
6. Enterprise code certificate application at Technical Supervision Bureau;
7. Tax registration certificate Application at Local Tax Bureau and State Tax Bureau;
8. Bank account opening.

Certificates Issued to Representative Office
Registration Certificate of Representative Office;
Representative card;
Corporate seal;
Open bank account permit certificate.

Contact Us
If you have further enquire, 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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