For foreign companies, the least expensive and most
common way to establish a permanent presence in China
is to register as a representative office. Representative
office in China can perform consulting, liaison, market
research and co-ordination type of work. However, you
need to consider one question: do you need to invoice
locally? The reason is as a representative office, the
entity is not allowed to sign contract and collect money
and thus not allowed to invoice locally neither. If your
clients in China could accept you invoicing them directly
from the mother company in foreign currency, then register
a representative office would be your first choice as
it's the most easy and inexpensive model. If you do need
to invoice locally in RMB (Chinese currency), then you
could consider registering a Joint Venture or a WFOE (Wholly
Foreign-owned Enterprise).
Steps to set up a Representative
Office:
1. Documents for the establishment
of foreign representative offices
Application letter to be signed by the president
or the general manager of the head office with their printed
names
Certificate of incorporation (A Hong Kong company should
also provide its business registration certificate).
An original bank letter to be issued by the bank of the
head office
Appointment letter to be signed by the president or the
general manager of the company to appoint the chief representative
of Beijing office (original)
Resume of the chief representative or the representatives
Copy of ID card or passport of the chief representative
or the representatives
5 2-inch photos
Copy of the office lease contract
Ownership certificate with the seal of the owner (or
copy of office purchase contract, copy of purchase receipts
and the sales permit of the developer with his seal
on it if there is no ownership certificate)
Please
Note:
1. documents from a Japanese company
should be sealed its seals
2. Two introductory letters are needed if the chief representative
or the representatives are local Chinese
3. The documents have to be translated into Chinese if
they are in foreign languages
2.
Application procedure
Above-consolidated documents will then be
submitted to different government authorities
for registration, including local industrial
and commercial bureau, the tax bureau, customs, opening
bank etc. Century Dragon provides you a one-station full
service. You don't need to come to China and go through
the bureaucracy, as Century Dragon will finalize all above
procedures for you to your satisfaction.
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