A Guide to the Shenzhen Representative Office (RO)
              Home    |    About    |    Foreign company registers    |    Accounting and tax agency    |    Hong Kong company registers    |    Shenzhen company registers    |    
              Overseas company registers    |    H.K. trademark agency    |    Business personal finance loans    |    Payroll, social security registration bid
Notice
 中文简体 | 中文繁体 | English Keyword: Search Way:
 News More...
 
 Answer To Questions More...
 
 ·How to apply for residence permit
 ·Apply for a working(Z)visa in shenzhen?
 · ShenZhen Taxation & Fees
 ·Which Signs shall not be Registered as T
 ·Which Signs shall not be Used as Tradema
 ·Which Signs can be Registered as Tradema
 ·Meet the Small-Biz-Friendly China
 ·Documents Required of Trademark Registra
 ·Why Register Trademark in China?
 ·How is VAT calculated
 ·What is the VAT rate in China
 ·What is the scope of the Chinese value-a
 ·What are the options for foreign enterpr
 ·What is an equity joint venture
 ·What is a cooperative joint venture
 On-Line Message More...
 
 Link
 
 ·SZ state tax bureau
 ·SZ bureau of trade and industry
 ·SZ administration for industry
 ·HK Inland revenue department
 ·HK Companies registry
 
 
A Guide to the Shenzhen Representative Office (RO)
Author:xcd   Article source: www.xcdacc.cn  Hits:965  Add time:2009-5-27  
If you want to invest in Shenzhen China, you don't just turn to the relevant government departments for so many certificates and formalities, but turn to Xinchengda. At Xinchengda we are not only give you tailor-made service for your need, but also for your satisfaction. Xinchengda’s services are business-orientated and value-orientated. XINCHENGDA—serving the world of business, professional and trustworthy.
ONE. OVERVIEW OF SHENZHEN

Shenzhen is the best choice for doing business in China. Situated in the Pearl River Delta, Shenzhen is the first Special Economic Zone since China carried out reform and open-door policy 30 years ago. Shenzhen has an area of 1953 square km’s and a population of more than 10 million. Shenzhen is the best city both for living and working in China as well as the fastest growing city in the world. In Shenzhen you can enjoy the sound infrastructure and the intensive industrial chain for trading, manufacturing and value investment. Since Shenzhen is bordering Hong Kong, you can also take great advantage and opportunity from the “one country, two systems” policy.
TWO.  THE CONCEPT OF REPRESENTATIVE OFFICE

A Chinese representative office (RO) is an institute setup in China, representing its parent company for liaison with Chinese counterparts. A RO is not considered to be a separate legal entity. It can not directly engage in business operation. However, through which its parent company can enter into contracts with its supplier/customers in China in 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.
 
THREE.  REPRESENTATIVE OFFICE NAME


The Chinese government has a name format for anyone who wants to setup a RO in China, the format is: country (area) + parent company name + Shenzhen Representative Office
FOUR.  THE PRIVILEGE AND FUNCTION OF RO

1. The RO enjoys a great popularity among foreign investors since its easier setup & management. Unlike foreign investment enterprises ("FIEs"), representative offices are not required to meet stringent requirements for items such as capital injection.
2. The functions of a RO are as follows:
a. It can handle market research, sourcing, project investigation, quality control for parent company, liaison with customers and suppliers
b. It cannot enter into purchase/sales contracts and receive payment for services, issue invoices.
c. A RO can open bank accounts and employ staff for above- mentioned purposes.
d. Apply for work permit and residence permit.
e. A RO is still subject to tax liability, so monthly tax return should be carried out regularly.
f. If a RO is set up in Shanghai, it is qualified to get a car without entrance tax.
FIVE.  DOCUMENTS PROVIDED BY CLIENTS

1. Copy of the business license or certificate of incorporation of parent company;
2. The original and copy of identification documents (ID card, passport) of representatives, and five color photos;
3. Two original bank reference letters (from investor's bank) indicating foreign investors' credibility, issued within 6 months in both English and Chinese version;
4. Lawyer's legalization or notarization endorsed by local China Embassy or Consulate
5. The lease of commercial office between lesser and lessee. The lessee should be acted by chief representative, or parent company. The lease should be endorsed by local Housing Management Authority.
As for other documents, Xinchengda are ready for providing assistance.
SIX.  WORKING PROCEDURE

Prepare all the needed documents→ fill out the application form→ sign the agreement with Xinchengda→ pay for the services→ submit all the needed documents→ name reservation→ apply for the business license and work card→ go to the public security bureau for stamp-make→ apply for Organization Code License & card→ apply for Registration license of the Local & National Taxation Bureau.
SEVEN.  Xinchengda SERVICES

1: XINCHENGDA package services include:
a. Both original and duplicate copy of business license; b. Registration license of the Local & National Taxation Bureau. c. Seal carving registration card; d. Organization Code License & card (IC card); e. Three stamps.
2: Service charge: RMB6,000 Yuan. Including the government service charge,.
3: Terms of Payment: The applicant can pay by cash, check or T/T to Xinchengda’s bank account before the service begins.
EIGHT.  BUSINESS FOLLOW UP
XINCHENGDA can provide a series of business follow-up services such as transfer RO to WFOE, monthly bookkeeping and tax return, annual return services, internal auditing, financial planning and tax layout, China policy & market study. Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc. in order to pave a smoother and wider way for your China business success.
NINE.  PROCESSING TIME NEEDED

Once all the necessary documents for application are ready for submission, government approval can be got within 10-15 working days.
TEN.  TAXATION

Although a RO is not to conduct business, it attracts tax as stated below:
1. Individual Income Tax (IIT)
IIT stands for Individual Income Tax which rates from 5% to 45% based on salary income exceeding more than RMB2000 for local employee and RMB 4800 for overseas employee. All the RO staff is subject to IIT if his income exceeds the limit. IIT is calculated according to such a formula: IIT= (income- limit)×rate.
2. Business Tax (BT)
BT stands for business tax which is based on monthly business operational expense, the rough rate is 5% based on your expenses. It is calculated according to the formula like this: BT= expenses/ (1-15%) ×5%.
3. Enterprise Income Tax (EIT)
EIT stands for enterprise income tax which is based on quarterly business operational expenses, the rate is 25%. It is calculated according to the formula: EIT = expenses/ (1-15%) ×10%×25%.
ELEVEN.   IMPORTANT HINTS
1. Because of language difference, all the documents submitted to the Chinese government should be translated into Chinese and endorsed by the appointed translation agency.
2. Xinchengda is responsible to inform the clients for the collection of the company kit at the designated office. If the client fails to collect the company kit within the mandatory three month period without reasonable excuse, the client will be regarded as forfeiting the right to the registered company; Xinchengda can dispose the company as it wishes.
3. Make sure to get the formal invoice from the lesser after leasing is done.
4. The follow-up services are not included in the service package, and are subject to further charge according to the clients’ requirements.
         Related Articles  
 
What are the options for foreign enterprises to establish a permanent presence in China
Why Register Trademark in China?
Shenzhen Xinchengda Financial Consultancy Co., Ltd is a specialized Business Registration agency certified by the Chinese business bureau.
Trademark Registration System
Exclusive Right to Use a Registered trademark
Means of Trademark Application
Which Signs can be Registered as Trademarks?
Who can Apply for Trademark Registration?
Which Signs shall not be Used as Trademarks?
Which Signs shall not be Registered as Trademarks?
Shenzhen XINCHENGDA Business
A Guide to the Shenzhen Wholly foreign owned enterprise
A Guide to the Shenzhen Representative Office (RO)
Service sector welcomes foreign investors
April sees record firm registrations
Innovation contest launched
City cracks down onfire code violations
Registration of new companies highest in April
American finds his own way of success
Police open blog for expatriates
Foreign firm registrations shrink 41% in 1st quarter
Apartment rents drop with falling demand
Deutsche Telekom to open Shenzhen office
CHINA'S FACTORY WORKERS GAIN RECOGNITION FOR GRIEVANCES
HongKong Corporate Formation
Shenzhen link ‘good business sense’
Application form for Incorporation of Hong Kong Limited Cmpany
Hongkong is a gateway to the world busniess
BVI Company Incorporation
Frequently Asked Questions (FAQs)
I have a HK company but all business is carried out not in HK. Should I pay tax in HK ?
Conflicting verdicts in ATM theft
GSK creates Chinese flu vaccine joint venture
Deregistration of a Defunct Solvent Private Company
A Company's Obligations after Registration
Filing of Annual Return by a Non-Hong Kong Company
BVI Incorporation
How to register a BVI Offshore Company
Bermuda Register Company
Tenant evicted with second contract
Incentives proposed for start-ups
Bar owner serves tipplers from near and far
HONG KONG OFFERS SOUND ADVICE
Tax-haven Jersey opens HK gateway
Concerning Establishment of Meetingand Exhibition Company on Foreign Businessman Investment
Approval and Registration of Foreign-funded Companies
Law of the PRC on Foreign-funded Enterprises
Documents for Applying for Foreign-capital enterprise
Measures for Liquidation of Enterprise with Foreign Investment
SHENZHEN Comparative Advantages
Apply for alcohol wholesale license
The chamber of commerce association (in Chinese and English)
Guidelines for Alien Employment in Shenzhen
An automobile joint venture has approved in ShenZhen
Guangdong commercial registration procedures streamlined
ShenZhen's Policy Advantages
RULES FOR THE IMPLEMENTATION OF THE LAW ON FOREIGN-CAPITAL ENTERPRISES
 
Download    |    On-line message    |    Case    |    Websitemap    |
Shenzhen business registration /company register /SZ Accounting & Tax service/86-755-83702077 All rights reserved 粤ICP备05044913号  
Tel:0755-83702077,83702525,83702505,83702506 MSN:LSH734@HOTMAIL.COM SKYPE:XCD-LAN
Fax:(+86) 0755-83702506 Email:LSH734@HOTMAIL.COMasklanlian@126.com
Add:28E, HaiXing Tower,shopping center ,NanShan Technology park ShenZhen 518057, GuanDong ,China (Metro:Line 1 ,ShenZhen University)