20 February 2013
REPRESENTATIVE OFFICE IN PRC
Representative Office ("RO") is an office established by a Company usually to conduct marketing, sourcing of products and non-transactional operations. RO is used extensively in PRC as it is a cost effective way of establishing a presence and testing the market, although in recent years the PRC government has been encouraging companies to establish Wholly Foreign-Owned-Enterprise ("WOFE") due to the limited advantages for the government as RO is only taxed on gross expenses at a rate of around 11.75 (depending on location).
A simple procedure for the establishment of a RO as below:-
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Establishment of a Hong Kong Entity (At least 2 years old) |
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Rent Office Space for Representative Office |
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Registration with Administration of Industry and Commerce (AIC) |
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Apply for Enterprise Code Certificates |
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Tax Registration with Local Tax Bureau and State Tax Bureau |
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Open Bank Account for RO |
RO usually takes around 2 months to establish, dependent on the management being able to rent the appropriate office space and provision of the Hong Kong company corporate documents. The hiring of Chinese staff must be employed through a human resource agency to ensure it is in compliance with PRC laws.
Since 2010, companies that wishes to establish a RO in PRC must be registered for over 2 years. However, we have shelf companies available for this purpose should a RO is required to be established urgently.
Please feel free to contact us should you require more information on the above.
CONTACT INFORMATION
info@alcpa.com.hk
(852) 2574 8289
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