Registration of foreign-funded companies in China,How to establish a representative office in China? Foreign company registration representative office, 
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OVERSEA COMPANY NAME (SHANGHAI REPRESENTATIVE OFFICE)
Matters Needing Attention
Establish a representative office in China can engage in the following activities related to the business of foreign enterprises:
1) Market research, display and publicity activities related to the products or services of foreign
enterprises;
2) Liaison activities related to product sales, service provision, domestic procurement and
domestic investment of foreign enterprises;
The representative office of a foreign (regional) enterprise is the business liaison office in China on behalf of the parent company. It does not have the legal personality, so it cannot carry out direct profit-making business activities. The representative office shall in accordance with relevant regulations, entrust the local foreign service unit or other units designated by the Chinese government to handle (employment permit), Therefore, the permanent representative office cannot directly sign a labor contract with Chinese employees, but the service agency can only sign a labor contract with the workers and send them to work in the representative office. If the representative office directly signs a labor contract with the workers, it will be deemed invalid, and both parties will deal with it according to the labor relationship.
Before registration, it is necessary to rent a commercial office in Shanghai for the registration process to apply certificate.
Registration Conditions and Documents Required
1- The certificate of registration and the certificate of registered address of oversea company that has existed for more than 2 years,it require be notarized and authenticated by the Chinese Embassy.
2- The articles of association or organization agreement of oversea company must be notarized and authenticated by the Chinese Embassy or Law firm.
3- The bank capital credit certificate of oversea company shall be notarized and certified by the Chinese Embassy.
4- The authorization or certification document of the authorized signatory (Issued by oversea company) must be notarized and certified by the Chinese Embassy.
5- The appointment documents of the chief representative and general representative of oversea company and the first page of each person's passport (1Chief representative,1-2General representatives, the total do not more than 4) must be notarized and certified by the Chinese Embassy or Law firm.
6- Resume of chief representative and general representative;
7- 2-inch white background photos of the chief representative and general representative;
8- The lease contract of the Shanghai Representative Office and the copy of the property certificate (Valid for one month);
9- Contact number, address and email address of oversea company.
Tax Instructions for Representative Offices
Tax calculation formula based on operating expenses:
(1) Amount of income payable (i.e. expenses): amount of income payable=amount of
expenditure in the current period × The tax rate is 20% (Enjoy the tax policy, reduce by half
and levy 10%). For example, the monthly expenditure of a representative office is about 80000
RMB, and its taxable income is 80000RMB × 10%=8000 RMB
(2) The time limit for tax declaration of income tax of foreign representative offices: declare
quarterly/monthly, pay in advance within 15 days after the end of each quarter/month, settle
(3) and pay within five months after the end of the year, and refund the excess and make up
the deficiency.
The operating expenses of foreign representative offices include: wages and salaries, bonuses, allowances, welfare costs, goods procurement costs (including fixed assets such as automobiles and office equipment), communication costs, travel expenses, rent, equipment rental costs, transportation costs, communication costs, and other expenses paid to staff both inside and outside China. The resident representative office must report the above expenditures to the local tax authorities according to the facts, and provide relevant information, which shall not be refused or concealed. For the expenditure outside China, the certification documents signed by the head office and the certified public accountant shall also be submitted to the tax authority for review.
Personal income tax liability of the chief representative of the representative office and other foreign employees:
Calculation of individual income tax: if there is a withholding agent (accounting company, third
party institution), the withholding agent shall withhold the tax on a monthly or monthly basis; If
the final settlement and payment are required, the final settlement and payment shall be
handled according to the provisions. The formula for calculating the annual comprehensive
income tax payable is as follows:
Annual comprehensive income tax payable=(Annual salary income+Annual labor remuneration income+Annual royalties income+Annual royalty income - Deduction of expenses (Fixed annual
60000/monthly 5000RMB) - Special deduction (social security) - Special additional deduction
(housing rent, housing loan, serious illness medical treatment, children's education, continuing
education, parents' filial piety) - other deductions determined by law) × Applicable tax rate -
quick deduction.
Service Time Approximate time for processing the representative office is 2-3weeks.Chief Representative and General Representative
Employment Permit and Residence Permit
Documents Required
1- Dispatch letter issued by oversea company - Original (Kindly note:The salary is paid by oversea company, but paid by the Chinese representative office and mention salary amount/month).
2- If the chief representative and general representative’s no criminal record, it must be notarized and certified by the Chinese Embassy (It valid for 6 months);
3- The original of the chief representative and general representative with bachelor's degree or above;
4- The bachelor's degree of the chief representative and general representative must be notarized and certified by the Chinese Embassy (valid for 6 months);
5- After graduation, the chief representative and general representative shall be certified by more than 2 years of relevant work experience letter -Original.
Service Time, Fees and PaymentApproximate time for processing work permit and work visa is 27Working days.
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