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Registering a foreign company in China is complex as it involves approval from multiple local authorities and bureaus. Our extensive network of local government bureaus contacts, knowledge of local regulations and experience with hundreds of projects already executed can help you accelerate your entry and growth in China,ShangHai, BeiJing, HangZhou.\nVisit here for more info- http://www.tommyconsulting.com/CorporateFormation.html

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set up a representative office in beijing china

Set Up a Representative Office in Beijing China, Establishing Rep Office (RO) in

Beijing, Beijing Rep Office Setup Procedures

Beijing is the capital of the People's Republic of China. The municipality is under

direct administration of China's Central Government. The city is the center of politics,

culture, and international exchanges, as well as one of the largest metropolises of

industry, finance and trade

There are ten districts and eight counties under the jurisdiction of Beijing. There are

Dongcheng, Xicheng, Chongwen, Xuanwu, Chaoyang, Haidian, Fengtai, Shijingshan,

Mentougou and Fangshan Districts, as well as Changping, Shunyi, Tongxian, Daxing,

Pinggu, Huairou, Miyun and Yanqing counties

Currently, Beijing is the country's largest science and technological, and cultural hub.

The region has more than 400 national research institutes. The Chinese Academy of

Sciences and the Chinese Academy of Engineering Science has more than 400

academicians in Beijing. The city boasts more than 70 universities and colleges

including the renowned Beijing University and Qinghua University

Beijing features a solid industrial foundation and strong overall economic power.

Since 1990, the GNP (gross national product) of the city has been steadily increasing

at an annual rate of 11 %. In China, its overall economic power is next only to

Shanghai

Beijing is the location of the headquarters of the People's Bank of China, the central

bank, as well as many other major financial and insurance institutions in China. The

city plays a significant role in implementing the country's financial guidelines and

policies, and in the decision-making and adjustment of the macro-economic policies.

Consequently, the city has great attraction towards international capital and financial

institutions.

Beijing is also a Chinese city that attracts large amounts of investment from

transnational corporations. In the recent years, more and more transnational groups

are choosing beijing as the destination

are choosing Beijing as the destination to establish Sino-foreign contractual joint

ventures or their regional headquarters. Of the 270 transnational and

world-renowned corporations that have invested in Beijing, 126 of them are among

the world's top 500 industrial giants or service companies. So far, these companies

have registered 5,600 representative offices in Beijing, representing more than 80

countries and regions, which is a first in China. All these have laid a solid foundation

for the city's further opening up to the outside world.

For

more

information

about

http://www.investbeijing.gov.cn/english/index.html, http://www.ebeijing.gov.cn

Beijing,

Please

visit

When investors have plans on establishing representative office in Beijing, it is better

for them to acquire more information in order to run a successful business in Beijing

China.

An RO has no legal personality, meaning it does not possess the capacity for civil

rights and conduct, cannot independently assume civil liability, and is limited in its

hiring ability. Chinese staff working for an RO, although not limited in number, must

be employed through a human resources agency that will sign a contract with the RO

on the one hand and with the Chinese staff on the other in order to ensure social

security and housing fund contributions are paid on a regular basis. No more than

four foreign employees can be hired per RO. Foreign staff working for ROs should

have an employment relationship with the parent company abroad, and any disputes

should be settled under the laws of that country

ROs are usually taxed on gross expenses with the overall tax burden around 11.75

percent of total monthly expenses; however, these rates may be increased by the

relevant tax bureau according to the industry. If the chief representative is a foreign

national, whether they stay in China or not, they shall be subject to individual tax

based on the income derived from the RO.

setting up a representative office in beijing

Setting up a representative office in Beijing China primarily requires 4 stages and this

entire process can take up till 2-5 months time.

- Pre-approval Stage

Once you have decided to base your representative office in which city, the next

thing is to approach the local Ministry of Commerce (MOFCOM) for contacts of a

local designated foreign enterprise service company (FESCO) who will be in charge of

your representative office application process. You should be paying approximately

US$800 to $1000 to a designated FESCO for their service of notifying you on the

relevant upcoming deadlines and administrative procedures. In addition, a signed

lease agreement is one of the pre-requisite for the approval;

Therefore it is vital to secure a lease for a “grade A” office space before submitting

the application.

Stage 2 - Application Stage

Generally your application approval should be done by MOFCOM, but if your industry

is specific to banking, insurance, law, accounting and media, you may have to

approach the relevant authority which has jurisdiction over your industry sector.

Once approved, you should have the Certificate of Approval certifying your legal

presence for the next 3 years which can be further extended.

Stage 3 - Registration Stage

This stage is to register for your representative office’s business license which must

be renewed annually. It is important to note that you must complete the registration

within 30 days of your approval from stage 2. The application together with the

supporting documents is required to be submitted to the local State Administration

of Industry & Commerce (SAIC and the process normally takes about 1-2 months

time.

Stage 4 - Post Registration Procedure

Firstly, In China, it is expected for your representative office to register the office

location with the local police (Public Security Bureau) and to register with local and

national tax bureaus secondly you should make

national tax bureaus.

Secondly, you should make financial and corporate seals as it is a practise in China to

use them on official documents. Thirdly, opening a foreign exchange bank account

will aid to facilitate overseas fund transfer. Fourthly, to import the relevant

equipments or materials, remember to complete the relevant customs registration.

Lastly, get a FESCO to assist you in recruiting of Chinese staff.

Once all this is done, your representative office is set to establish its presence in

China. However before getting to this stage, a good market research study is required

to ensure that your products or services are viable in the Chinese market.

1 A representative office may, however, negotiate contracts that are later signed in

the name of the home office located outside China.

2 The application letter should contain, in part, the following: a description of the

company’s history, business and scope; the names of the Chairman of the Board, the

General Manager and directors; the names of its major trading partners in China; its

business volume; the proposed name of the representative office; the purpose for

setting up the representative office and the scope of its activities; the duration of the

office and its chief representative.

3 Head office incorporation documents include certified copies of the company’s

business registration certificate, the certificate of incorporation, the memoranda and

articles of association, etc.

4 Other post registration formalities include: registering with the tax bureau; opening

a bank account; completing a residence application with the with the local Public

Security Bureau; applying to the Customs Administration for permission to import

office equipment and daily necessities for use by the representative office and its

personnel; appointing a FESCO to recruit local Chinese employees; etc.

Set Up a Representative Office in Beijing is a big project by itself, which requires

financial and time commitments, business management knowledge and China

expertise identifying a competent agent to manage

expertise. Identifying a competent agent to manage the complex process will be a

cost and time effective way to avoid potential pitfalls

Since 2006, Tommy China Business Consulting has been focusing on consulting

services for our clients to Setting up a Representative Office (RO) in Beijing.

Please visit http://www.tommyconsulting.com/CorporateFormation.html

Email: tomlee@tommyconsulting.com, Skype: tomleeli

WhatSapp/Wechat/Cell Phone: +86 18926401128