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Hainan Representative Office Formation

Updated:2018-6-25 14:35:54    Source:www.tannet-group.comViews:84

Hainan representative office formation is one of the investment choices for investors. An RO is a non-incorporated entity as an extension of enterprises incorporated outside mainland China for conducting business-related liaison activities in mainland China. It is not a separated legal entity in China, all activities of the China RO is held responsible to its parent company. It is prohibited from conducting any profit-making transactions in mainland China.

An RO is an effective way for foreign investors to get a feel for the  Chinese market while demonstrating commitment to the market. It is the easiest type of foreign investment structure to set up and, unlike the wholly foreign-owned enterprise, has no registered capital requirements.

Features of a Representative Office
1. Legal Status
The Representative Office is a non-legal entity operating representing it's parent company overseas. A representative office is not allowed to engage itself in business activities, issue invoices on its own, remitting outward, signing sales or purchase contracts, or receiving income from services performed but may act as a liaison and promotion office for its parent company.

2. Company Name
The name of the Representative office should be in the form of "Name of the Enterprise + Name of the City + Representative Office".

3. Business Address
At the beginning of setting up the Representative Office, it is advised to decide the place and building where office is going to be located first, as the address of the proposed office will have to be mentioned in the application for approval. The business address must be located in commercial buildings approved by the government.

4. Business Activities
A Representative Office in China may only engage in non-profit making activities, it can carry out the following functions:

(1) Conduct research and survey for its parent enterprise in the local market;
(2) Liaise with local and foreign contacts in China on behalf of the parent enterprise;
(3) Conduct research and provide data and promotional materials to potential clients or trading partners;
(4) Act as a coordinator for the parent enterprise's activities in China;
(5) Make travel arrangements for parent enterprise representatives and potential Chinese clients.

Setting up a Representative Office in Hainan
(1) Securing an office for registration;
(2) Preparation and collection of relevant registration documents;
(3) Application for registration via Administration of 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 certificates application at Technical  Supervision Bureau;
(7) Tax registration certificates application at local tax bureau;
(8) Ban account opening in Bank.

An RO is relatively easy to establish and maintain, but they are fairly limited in terms of operational scope since they cannot actually issue invoices (i.e., fapiao, the basis for obtaining tax deductions in China) or sign contracts.

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 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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