China R/O - Representative Office

 
Studio Alpha Concept & Partners Costituire Società Offshore Hong Kong Company Formation, Offshore Company Incorporation, Company Formation, China Hong Kong Company, Limited and Unlimited Company in Hong Kong, Offshore Companies R/O - Representative Office Business Nature Representative Office, or called permanent delegate organization of foreign corporation, can only engage in the indirect business activities in China and represent the parent corporation to do business. Its activities are limited to a range from the technique communication and products promotion to marketing research. The office is authorized to undertake management activities and sign contracts or agreements which are to assure its sound running. Pros & Cons Pros No share capital is required; Setup in less procedure; Can exchange foreign currency into RMB; Can hire local staff via government admitted agents; Simple company and financial structure. Cons Not business entity; Tax rate is high; No invoicing; Must be investment in company; Mother company needs to be at least 2 years old. Setup Key Takes around 1 month to apply; A Chief Representative (CR) is to be appointed; Company should be able to present bank reference letter; An office premise rental agreement (or ownership document) which is valid for foreign investor use. The term should be at least 12 months long.  Important Effective from 2010, the investing company needs to be "at least 2 years old" for it to setup Representative Office in China; However, below is still not clear about this "2 years old" rule : Applicable or not to HK company? Applicable to all China cities? Therefore, suggest client to raise request and we can check for the specific case again. Procedure Signing the Entrustment agreement; Preparing the documents for signature; Applying the R/O name and info on the Administration of Industrial and commerce bureau; Applying the approval certificate from Administration of industrial and commerce bureau; Making the chops; Applying organization code certificate from Bureau of Quality and Technical Supervision; Applying the national tax certificate; Applying the local tax certificate; Applying the Foreign Exchange Bureau; Applying the statistic bureau; Opening the Foreign currency bank account; Opening the RMB bank account. Documents Required Applicant company's Certificate of Incorporation Members Register Directors Register Last filed return to Company Registry Last filed return to Tax Department Company / business profile and reason of setting up RO Minutes of Board Meeting to setup RO Minutes of Board Meeting to authorize Chief Representative Bank reference letter Chief Representative's Passport copy Photos Resume Application letter One to Foreign Economic Relations & Trade Commission Another one to Administrative Council of Industry & Commerce Tax Implications Although a RO is not to conduct business, it attracts tax on: Chief Representative, general representative and local staff's Individual Income Tax (IIT) on monthly income; Business Tax (BT) based on quarterly operational expenses; Income Tax (IT) based on quarterly operational expenses; Additional Tax based on quarterly Business Tax (BT). Rough elaboration on BT & IT payable Business Tax Deemed Turnover x 5% Total Expenses Deemed Turnover x 80% Deemed Turnover Total Expenses / 80% Business Tax (Total Expenses / 80%) x 5% Income Tax Deemed Profit x 25% Deemed Profit Deemed Turnover x 15% Income Tax (Total Expenses / 80%) x 15% x 25% Business Tax + Income Tax (Total Expenses / 80%) x (5% + 15% x 25%) Business Tax + Income Tax (Total Expenses / 80%) x 8.75% Therefore, Business Tax + Income Tax = Total Expenses x 11% Additional Tax River Tax = Business Tax x 1% Urban Maintenance and Construction Tax = Business Tax x 7% Education Surcharge = Business Tax x 3% Important These tax rate are examples and applicable only to Shanghai; The registered address should be in Grade A buildings. If Representative Office is registered in Shanghai, it is required that the building must have a foreign services certificate. Main update of new RO Regulations for Foreign Enterprises Decree of the State Council of the People’s Republic of China issued new regulations on "Registration Administration of Resident Representative Offices of Foreign Enterprises" on November - 19, 2010. New regulations are going to replace the old regulations that have been in force since 1983; New regulations take effect on March - 1, 2011. The most noticeable changes are below : Government requirements: Annual Report Submit Now Regulations Some regional need to submit (example : Shanghai, Beijing, Guangzhou). New Regulations All regional need to submit. Chief Representative Now Regulations 1 person New Regulations 1 person Representative Now Regulations No limit New Regulations 1 to 3 person Penalty for failing to provide the report on time Now Regulations Depend on regional New Regulations RMB 10,000 ~ RMB 30,000 or license revocation. Penalty for reporting false information Now Regulations Depend on regional New Regulations RMB 20,000 ~ RMB 200,000 or license revocation. Penalty for profit activity involvement Now Regulations Below RMB 20,000 or license revocation. New Regulations RMB 50,000 ~ RMB 200,000 or license revocation. Penalty for exceeding the activity scope mentioned above Now Regulations Below RMB 5000 or license revocation. New Regulations RMB 10,000 ~ RMB 100,000 or license revocation. Individaul Income Tax (IIT) Rate Bands Monthly taxable income Tax Rate (R%) Short cut deduction (A) 1 RMB 500 and less 5 0 2 RMB 500 ~ 2,000 (include 2,000) 10 25 3 RMB 2,000 ~ 5,000 (include 5,000) 15 125 4 RMB 5,000 ~ 20,000 (include 20,000) 20 375 5 RMB 20,000 ~ 40,000 (include 40,000) 25 1375 6 RMB 40,000 ~ 60,000 (include 60,000) 30 3375 7 RMB 60,000 ~ 80,000 (include 80,000) 35 6375 8 RMB 80,000 ~ 100,000 (include 100,000) 40 10375 9 Above RMB 100,000 45 15375 Individaul Income Tax (IIT) calculation Monthly taxable income x R% - A   Monthly taxable income non Chinese Salary - 4800 Chinese Salary - 2000         It is non-taxable if income is lower than RMB 4,800 for non-Chinese, and RMB 2,000 for Chinese Studio Alpha Concept & Partners Unit 1010, Miramar Tower, 132 Nathan Road, Tsim Sha Tsui, Kowloon, Hong Kong Tel: +85282180166; Email: info@nokia-hk.net - Location Map Alpha Concept costituire società offshore Import-Export Cina Società Offshore importare dalla Cina sitemap società off shore consulenza aziendale Cina consulenza aziendale fiscale made in Cina società offshore investimento sicuro tasse tasse economia in Cina formazione manageriale mappa del sito Hong Kong paradisi fiscali Europa http://www.nokia-hk.net/http://www.nokia-hk.net/alpha-concept.htmlmailto:info@nokia-hk.nethttp://alpha-concept-limited.nokia-hk.net/alphaconcept-miramar-office.htmlhttp://www.nokia-hk.net/alpha-concept.htmlhttp://www.nokia-hk.net/http://nokia-hk.net/commercio-cina.htmlhttp://nokia-hk.net/Cina-costituzione-impresa-societa.htmlhttp://nokia-hk.net/Hong-Kong-Azienda.htmlhttp://nokia-hk.net/sitemap.htmlhttp://nokia-hk.net/Hong-Kong-Impresa.htmlhttp://nokia-hk.net/cina-opportunita-investimento.htmlhttp://nokia-hk.net/meccanismi-ridurre-carico-fiscale.htmlhttp://nokia-hk.net/cina-punto-vendita-dettaglio.htmlhttp://nokia-hk.net/Hong-Kong-business.htmlhttp://nokia-hk.net/investimento-sicuro.htmlhttp://nokia-hk.net/tasse-tasse.htmlhttp://nokia-hk.net/cina-superpotenza-economica.htmlhttp://nokia-hk.net/management-dirigenti/formazione-manageriale.htmlhttp://nokia-hk.net/sitemap.htmlhttp://nokia-hk.net/black-list.htmlhttp://nokia-hk.net/europa.htmlshapeimage_2_link_0shapeimage_2_link_1shapeimage_2_link_2shapeimage_2_link_3shapeimage_2_link_4shapeimage_2_link_5shapeimage_2_link_6shapeimage_2_link_7shapeimage_2_link_8shapeimage_2_link_9shapeimage_2_link_10shapeimage_2_link_11shapeimage_2_link_12shapeimage_2_link_13shapeimage_2_link_14shapeimage_2_link_15shapeimage_2_link_16shapeimage_2_link_17shapeimage_2_link_18shapeimage_2_link_19shapeimage_2_link_20shapeimage_2_link_21

contatto Skype:

alpha-concept


Paradisi fiscali  Import-Export Cina  Società Offshore  importare dalla Cina   sitemap società off shore  consulenza aziendale Cina  consulenza aziendale fiscale  made in Cina  costituire società offshore  investimento sicuro  tasse tasse  economia in Cina   formazione manageriale   mappa del sito  Hong Kong paradisi fiscali   Europa

Hong Kong centro finanziario offshore     

Hong Kong Centro Finanziario OffShore  

costituire società in Hong Kong

Paradisi fiscali    Import-Export Cina    Società Offshore    importare dalla Cina    società off shore    consulenza aziendale Cina     consulenza aziendale fiscale

Consulenza Cina & Hong Kong    Servizi Societari Hong Kong e Cina    Commercio Cina     Cina formazione impresa    Ufficio di Rappresentanza in Cina    Punto Vendita Dettaglio in Cina    Investimenti in Cina    Quadro Normativo Cina    Consulenza aziendale Cina & Hong Kong: mappa del sito     importare dalla Cina Consulenza Cina & Hong Kong    Servizi Societari Hong Kong e Cina    Commercio Cina     Cina formazione impresa    Ufficio di Rappresentanza in Cina    Punto Vendita Dettaglio in Cina    Investimenti in Cina    Quadro Normativo Cina    Consulenza aziendale Cina & Hong Kong: mappa del sito    


Costituire società in Hong Kong     Hong Kong centro finanziario offshore     

Hong Kong Centro Finanziario OffShore      costituire società offshore in Hong Kong


Paradisi fiscali    Import-Export Cina    Società Offshore    importare dalla Cina    società off shore    consulenza aziendale Cina     consulenza aziendale fiscale


Hong Kong centro finanziario offshore


importazione dalla Cina, import export Cina, comprare dalla Cina, importatori Cinesi,

importazioni dalla Cina: come importare dalla Cina, comprare in Cina, prodotti cinesi