The Representative Office which the foreign-funded enterprise builds in China is an institute representing its parent enterprise and responsible for the business liaison in China and is therefore not an independent corporate entity and can not engage in commercial activities in which profits will be involved. For example, it can not sign any purchase, selling contract, and can not accept any income from its service, and can not invoice to the clients and can not remit to outside boundary. However, the representative can open accounts in bank and possess its own staff working in business liaison. The very general headquarters can sign the contracts with the clients of representative and suppliers in the name of the general headquarter but can not engage in any commercial activities in the name of the representative. However, the representative can get in touch of many clients so that it can promote the business communication and assist the general headquarter.

The Advantages of the Representative Office
I. It will be simpler and faster towards going through formalities;
II. There is no strict requirement in capital investing which is decided by the difference between the representative and the corporate entity that the representative only engages in the business operating while the corporate entity engages in every aspects of business in which the capital investing will be involved;
III. It is not complicated towards management;
IV. And the tax will be less for the foreign merchant who engages in some trade.

The Range of Business
The foreign-funded enterprise representative can not directly engage in any commercial activity with its clients and can not sign any agreement, so the activities the representative does are only the indirect business doings. For example: public relations activities, business liaison, product exhibition, market survey, technology communication. If you want to know the relative operating procedures, please contact us for consulting.

Towards Tax
Generally speaking, according to ‘The Income Tax Law of Foreign-funded Enterprises in People’s Republic of China’ and ‘The Business Tax Law in Local Area’, the representative should pay the foreign-funded enterprise income tax and business tax, but the paying forms are different. The enterprise income tax and business tax should be paid fifteen days before the end of per quarter of the year. Besides, according to related tax law of People’s Republic of China, if some requirements are satisfied, the representative can apply tax-free. The parent company must be some manufacture if some tax-free involved.

The Required Qualifications
I. The operation duration of the foreign company should be more than one year;
II. Credit testimonial certified by the bank can not be less than 100,000 in form of the currency of its own country;
III. And towards the nature of the company, it should engage in some manufacturing, trade, and shipment agent doings.

Services Provided
We can help you to set up offices in China. The basic Registration Service and other relative services for the foundation of your representative office in China are provided. The duration for the establishment of an office is about one month.