China RO Formation Service
Hotline: 86-755-82143348 Email: anitayao@citilinkia.com
China Representative Office Advantages
A Chinese representative office (RO) is a business association which is setup in China to represent its overseas parent company aimed for China market research activities, or for liaison activities with Chinese businesses and customers. Establishment of an RO is subject to approval by the relevant authorities under Chinese law.
China Representative Office Requirements
A RO is not considered to be a fully independent legal entity. It can not directly engage in business operation, issue invoices on its own, remit outward, sign sales or purchase contracts, or receive income from services performed. However, the parent company through its RO 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.
China RO registration-general tax regulation
1. Business Tax (BT), which is based on monthly business operational expense, its rough rate is 5% based on your expenses. It is calculated according to the formula like this: BT= expenses/ (1-15%) ×5%.
2. Enterprise Income Tax (EIT), which is based on quarterly business operational expenses, its rate is 25%. It is calculated according to the formula: EIT = expenses/ (1-15%) ×10%×25%.
China RO registration-steps for registration
Step 1: Pre-approval from local government authorities concerned if business scope entails such pre-approval
Step 2: Apply for Business License
Step 3: Generate Organization Code License
Step 4: Tax Certificate by Taxation Bureau
Step 5: Registration and Approval with government department
Step 6: Open Foreign Currency and RMB bank account
Step 7: Statistics license Registration with local goverment department
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.