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Xiamen Representative Office(RO) Setup

Establishing Representative Office (RO) in Xiamen

Update Date:2018-4-11 10:09:00     Source:www.3737580.com     Views:1175

Xiamen Representative Office Setup Service
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A Chinese representative office (RO) is an institute setup in China, representing its parent company for liaison with Chinese counterparts. A representative office (RO) is not considered to be a separate legal entity. It can not directly engage in business operation. However, the representative office (RO) which its parent company can enter into contracts with its supplier/customers in China in its own name, but not under the name of representative office (RO). A representative office is popular for those who are willing to enter China at the test period of business and investment.


Xiamen Representative Office Setup-Representative Office Name
The Chinese government has a name format for anyone who wants to setup a representative office (RO) in China, the format is: country (area) + parent company name + Xiamen Representative Office.

 

Xiamen Representative Office (RO) Setup– Introduction of Establishing Representative Office in Xiamen
Setting up a representative office is the most inexpensive entry form for foreign enterprises to enter the Chinese market. And about 20% of investing clients have chosen Representative Office as their Xiamen business entity since setting up a representative office is cost efficient and it requires no capital investment. A representative office basically is to serve as a liaison office between a foreign company and its business partners in Xiamen, and to coordinate the parent enterprise activities in Xiamen (travel arrangements, promotion etc.). Representative offices are applicable for many industries: trading, shipping, consulting, etc.

Xiamen Representative Office (RO) Setup– Advantages of Establishing Representative Office (RO) in Xiamen
Using a representative office as Xiamen entry form has the following advantages:
1. Affordable: no paid capital required, government and service fees are usually lower than what is needed for WFOEs.
2. Quicker Setup process (usually within one month or so), and easy to control than others business type in human resources or taxes issues
3. The quickest, relatively inexpensive and easy to set up.

 

Xiamen Representative Office (RO) –The Functions of Representative Office:
A Representative Office in Xiamen may only engage in non-profit making activities, it can carry out the following functions:
1. It can handle market research, sourcing, project investigation, quality control for parent company, liaison with customers and suppliers
2. It cannot enter into purchase/sales contracts and receive payment for services, issue invoices.
3. A RO can open bank accounts and employ staff for above- mentioned purposes.
4. Apply for work permit and residence permit.
5. A RO is still subject to tax liability, so monthly tax return should be carried out regularly.
6. If a RO is set up in Shanghai, it is qualified to get a car without entrance tax.


Xiamen Representative Office Setup-Procedures
Preparing all the needed documents→ fill out the application form→ sign the agreement with ATA→ 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 Setup license of the Local & National Taxation Bureau.

 

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