Administrative Regulations on the Registration of Resident Representative Offices of Foreign Enterprises
2018-03-31 1334
Administrative Regulations on the Registration of Resident Representative
Offices of Foreign Enterprises (Revised in 2013)
Order of the Sate Council No.638
July 18, 2013
(Promulgated by Order of State Council No.584 on November 19, 2010; revised
further according to the Decision of the State Council on Abolishing and
Revising Some Administrative Laws and Regulations on July 18, 2013)
Chapter I General Provisions
Article 1 These Regulations are formulated for the purposes of regulating the
establishment of resident representative offices of foreign enterprises and
their business activities.
Article 2 For the purpose of these Regulations, "Resident Representative
Offices of Foreign Enterprises" (hereinafter referred to as the
"Representative Offices") refer to the offices established within the
territory of China by foreign enterprises in accordance with the provisions of
these Regulations for the purpose of engaging in non-profit activities in
connection with the business of such foreign enterprises. Such Representative
Offices have no legal person status.
Article 3 Representative Offices shall abide by the laws of the People's
Republic of China and may not jeopardize the national security and social and
public benefits of the People's Republic of China.
Article 4 The establishment, change or termination of Representative Offices
shall go through the registration formalities in accordance with these
Regulations.
Foreign enterprises apply for handling the registration formalities of
Representative Offices shall be responsible for the authenticity of the
application documents and materials.
Article 5 The industrial and commercial administrative authorities of the
people's government of the provinces, autonomous regions and municipalities
directly under the Central Government shall be the registration and
administrative authorities of representative offices (hereinafter referred to
as the "registration authorities").
Registration Authorities shall establish an information sharing mechanism with
other related departments and mutually provide information in relation to the
Representative Offices.
Article 6 Representative Offices shall provide an annual report to the
Registration Authorities between March 1 and June 30. The contents of such
annual report shall include the lawful subsisting information of the foreign
enterprises, the information on the commencement of business activities of the
Representative Offices and the information on the expenses and expenditure and
revenues audited by their accounting firms and other related information.
Article 7 Representative Offices shall legally establish account books with the
information on the funds appropriation of foreign enterprises and the expenses
and expenditure and revenue are truly recorded, and put such account books in
the place of the Representative Offices.
The Representative Offices may not use the accounts of other enterprises,
organizations or individuals.
Article 8 The chief representative and other representatives as appointed by
the foreign enterprises and other personnel of the Representative Offices shall
abide by the provisions of the laws and regulations on the departure and entry,
residence, employment, taxation, foreign exchange registration; in case of any
violation, they shall be dealt with by relevant departments in accordance with
the relevant provisions of laws and regulations.
Chapter II Registration Matters
Article 9 The registration matters of Representative Offices include name of
the Representative Office, name of the chief representative, business scope,
place of representative office, resident period, name of its foreign enterprise
and its domicile.
Article 10 The name of a Representative Office shall consist sequentially of
the following: nationality of its foreign enterprise, Chinese name of the
foreign enterprise, name of resident city and the wording of
"representative office", and may not include the following contents
and words:
1. that are detrimental to the national security or social and pubic benefits
of the People's Republic of China;
2. that are names of the international organizations; or
3. that are prohibited by the laws, regulations or provisions of the State
Council.
The Representative Office shall engage in business activities in the name
registered with the registration authorities.
Article 11 The foreign enterprise shall appoint a chief representative. The
chief representative may, within the written authorization scope of the foreign
enterprise, sign the registration application documents for the representative
office on behalf of the foreign enterprise.
The foreign enterprise may appoint 1 to 3 representatives according to business
needs.
Article 12 Under any of the following circumstances, no person shall be the
chief representative or other representative:
1. who are sentenced due to being detrimental to the national security or
social pubic benefits of the People's Republic of China;
2. who are chief representatives or other representatives of the Representative
Offices that are legally revoked the establishment registration, or cancelled
the registration certificate or ordered to close by relevant departments due to
committing any breach activity that will be detrimental to national security or
social public benefits of the People's Republic of China and there are less
than five years as of the date of such revocation, cancellation or order; or
3. other circumstances as provided by the State Administration for Industry and
Commerce.
Article 13 Representative Offices may not engage in any profit-making
activities.
Where international treaties or agreements to which China is a party provide
otherwise, such provisions shall be followed, except for the provisions China
has made statement of reservations.
Article 14 Representative Offices may engage in the following activities in
connection with the business of the foreign enterprises:
1. market investigation, display, publicity activities in connection with the
products or services of foreign enterprises; and
2. liaison activities in connection with product sales, service provision,
domestic procurement and domestic investment of foreign enterprises.
Where laws, regulations or provisions of the State Council provide that
approval is required for engaging in the business activities as provided in the
preceding paragraph, Representative Offices are required to obtain approval.
Article 15 The resident place of the Representative Offices is the own choice
of foreign enterprises.
According to the needs for national security and social and public benefits,
relevant departments may require the Representative Offices to adjust the
resident place and timely notify the same to the Registration Authorities.
Article 16 The resident period of the Representative Offices may not exceed the
subsisting period of foreign enterprises.
Article 17 Registration Authorities shall record the registration matters of
the Representative Offices in the registrars of Representative Offices to be
made available to or copied by the general public.
Article 18 Representative Offices shall place the registration certificate of
the resident representative office of the foreign enterprise (hereinafter
referred to as the "Registration Certificate") issued by the
Registration Authorities at a prominent place in the resident place of the
Representative Offices.
Article 19 Any entity or individual may not forge, alter, lease, lend or
transfer the Certificate and the representative certificate of chief
representative or representative (hereinafter referred to as the
"Representative Certificate").
Where the Registration Certificate or the Representative Certificate is lost or
destroyed, the Representative Offices shall make statement on the designated
media to declare its invalidation and apply for re-issue.
Where the Registration Authorities legally make decisions on permission of
change registration, permission of cancellation registration, revocation of
change registration or suspension of the Registration Certificate, the original
Registration Certificate and the Representative Certificate of original chief
representative or representative of the Representative Offices will
automatically be invalid.
Article 20 The foreign enterprises shall announce the establishment or change
of the Representative Offices to the general public on the media designated by
the Registration Authorities.
Where the Representative Offices revoke the Registration Certificate or be
legally cancelled the registration of establishment, the Registration
Authorities shall make announcement thereof.
Article 21 When investigating the activities of the Representative Offices that
are suspected of breaking these Regulations, the Registration Authorities may
legally exercise the following duties and responsibilities:
1. investigate and understand the situation from relevant entities and
individuals;
2. consult, copy, seal up and/or detain the contracts, documents, account books
and other materials in connection with the activities in violation of the laws;
3. seal up or detain the tools, equipments, raw materials, products
(commodities) and/or other property that are specially used for engagement in
illegal activities; and
4. check the accounts and the accounting vouchers, account books and statements
of account in connection with the savings of the Representative Offices that
engage in illegal activities.
Chapter III Establishment Registration
Article 22 Establishment of a Representative Office shall apply for
establishment registration with the Registration Authorities.
Article 23 When applying for establishment of a representative office, the
foreign enterprise concerned shall submit the following documents and materials
to the Registration Authorities:
1. the application for establishment registration of representative office;
2. the certificate of domicile of the foreign enterprise and the certificate of
legal operation for more than two years;
3. the articles of association or the organization agreement of the foreign
enterprise;
4. the documents for appointment of chief representative or representative of
the foreign enterprise;
5. the identification certificate and resume of the chief representative or
representative;
6. the funds credit certificate issued by the financial institutions having
business transactions with the foreign enterprise; and
7. the certificate of lawful use of the resident place of the representative
office.
Where an approval for establishment of a representative office is required by
the laws, regulations or the rules of the State Council, the foreign enterprise
shall apply for establishment registration with the Registration Authorities
within 90 days upon the date of approval and submit relevant approval
documents.
Where a representative office may be established for engaging in profit
activities in accordance with the international treaty or agreement concluded
or participated by China, the corresponding documents shall be submitted in
accordance with the laws, regulations or the rules of the State Council.
Article 24 The Registration Authorities shall make decision on whether or not
approve the registration within 15 days upon the date of acceptance of
application, and may seek the opinions of relevant departments in accordance
with the demand prior to such decision. Where a decision for approval of
registration is made, the Registration Authority concerned shall issue the
Registration Certificate and the Representative Certificate to the applicant
within 5 days upon the date of decision; where a decision for non-approval of
registration is made, the notice of rejection of registration issued to the
applicant within 5 days upon date of decision and explanation for non-approval
of registration shall be made.
The issuance date of the Registration Certificate shall be the establishment
date of the Representative Office.
Article 25 The Representative Offices, chief representatives and
representatives shall apply for going through the relevant formalities for
stay, employment, taxation and foreign exchange registration on the strength of
the Registration Certificate and the Representative Certificate.
Chapter IV Change of Registration
Article 26 Where there is any change to the registered matters of the
Representative Offices, the foreign enterprises shall apply for changing
registration with the Registration Authorities.
Where 27 In case of any change made to the registered matters, the
Representative Offices shall apply for changing registration within 60 days
upon the date of change of any registered matter.
Where the change of registration matters is subject to approval prior to the
registration in accordance with the laws, regulations or rules of the State
Council, the change of registration shall be applied within 30 days upon the
date of approval.
Article 28 Where the Representative Offices continue to engage in business
activities upon the expiry of resident period, the foreign enterprises shall
apply for changing registration to the Registration Authorities within 60 days
upon the expiry of the resident period.
Article 29 In application for changing registration of the Representative
Office, the application for registration change of representative office and
the relevant documents as required to be submitted by the State Administration
for Industry and commerce shall be submitted.
Where change of registration matter is subject to approval prior to
registration in accordance with the laws, regulations or rules of the State
Council, relevant approval documents shall be submitted.
Article 30 The Registration Authorities shall make decision on whether or not
to permit the change of registration within 10 days upon the date of acceptance
of application. Where a decision for approval of change registration is made,
the Registration Authority concerned shall re-issue the Registration
Certificate and the Representative Certificate to the applicant within 5 days
upon the date of decision; where a decision for non-approval of change
registration is made, the notice of rejection of change registration issued to
the applicant within 5 days upon date of decision and explanation for
non-approval of change registration shall be made too.
Article 31 Where the authorized signatory, the enterprise liability form,
capital (assets), business scope and representatives of the foreign enterprises
change, the foreign enterprises shall file the same for record with the
Registration Authorities within 60 days upon the date of change of the said
matters.
Chapter V Cancellation of Registration
Article 32 Under any of the following circumstances, foreign enterprises shall
apply for cancellation of registration with the Registration Authorities within
60 days upon the date of occurrence of the following matters:
1. where the foreign enterprises cancel their Representative Offices;
2. where the Representative Offices do not continue to engage in business
activities upon expiry of the resident period;
3. where the foreign enterprises are terminated; or
4. where the Representative Offices are legally revoked of approval or ordered
to be closed.
Article 33 When applying for cancellation of a representative office, the
foreign enterprise concerned shall submit the following documents and materials
to the Registration Authorities:
1. the application for cancellation registration of representative office;
2. the certificate for cancellation of the taxation registration of the
representative office;
3. the certificate issued by the customs or foreign exchange department for
that relevant matters have been cleared and completed or that such
representative office has not finished the relevant procedures; and
4. other documents as provided by the State Administration for Industry and
Commerce.
Where the Representative Offices' termination of activities is subject to
approval in accordance with the laws, regulations or the rules of the State
Council, the relevant approval documents shall be submitted.
Article 34 The Registration Authorities shall make decision on whether or not
to permit the cancellation registration within 10 days upon the date of
acceptance of application. Where a decision for approval of cancellation
registration is made, the Registration Authority concerned shall capture the
Registration Certificate and the Representative Certificate from the applicant
within 5 days upon the date of decision; where a decision for non-approval of
cancellation registration is made, the notice of rejection of cancellation
registration issued to the applicant within 5 days upon date of decision and
explanation for non-approval of cancellation registration shall be made too.
Chapter VI Legal Liabilities
Article 35 Where the foreign enterprises establish Representative Offices
without authorization or engage in business activities in relation to the
Representative Offices without registration, the Registration Authorities shall
order them to stop those activities and punish a fine of more than CNY50,000
but no more than CNY200,000.
Where the Representative Offices violate these Regulations to engage in profit
activities, the Registration Authorities shall order them to correct and
confiscate the illegal gains and the tools, equipments, law materials, products
(commodities) and other property that are specially used for engaging in profit
activities, and punish a fine of more than CNY50, 000 but no more than CNY500,
000; where the circumstance is severe, the Registration Certificate shall be
revoked.
Article 36 Where the foreign enterprises obtain the registration or record
filing of the Representative Offices by submitting false materials or adopt
other fraudulent measures to conceal the true information, the Registration
Authorities shall order them to correct and punish the Representative Offices a
fine of more than CNY20,000 but no more than CNY200,000, and punish the
directly responsible directors and other directly responsible persons a fine of
more than CNY1,000 but no more than CNY10,000; where the circumstance is
severe, the Registration Authorities shall cancel their registration or revoke
the Registration Certificate, and cancel the Representative Certificate.
Where the Representative Offices conceal the true information or make
falsification in the annual report they submitted, the Registration Authorities
shall order them to correct, the Representative Offices shall be punished a
fine of more than CNY20,000 but no more than CNY200, 000; where the circumstance
is severe, the Registration Certificate shall be cancelled.
Where the Representative Offices forge, alter, lend, lease or transfer the
Registration Certificate or the Representative Certificate, the Registration
Authorities shall punish the Representative Offices a fine of more than CNY10,
000 but no more than CNY100, 000 and punish the directly responsible directors
and other directly responsible persons of a fine more than CNY1,000 but no more
than CNY10, 000; where the circumstance is severe, their Registration
Certificate shall be revoked and the Representative Certificate shall be
cancelled and confiscated.
Article 37 Where the Representative Offices violate these Regulations to engage
in activities other than the business activities as provided in Article 14
herein, the Registration Authorities shall order them to make correction; where
they fail to make corrections, a fine of more than CNY10, 000 but no more than
CNY100, 000 shall be punished; where the circumstance is severe, the Registration
Certificate shall be revoked.
Article 38 Under any of the following circumstances, the Registration
Authorities shall order the Representative Offices to make correction and
punish them a fine of more than CNY10, 000 but no more than CNY30, 000; where
they fail to make corrections, the Registration Certificate shall be revoked:
1. where the Representative Offices fail to submit the annual reports as
required hereunder;
2. where the Representative Offices fail to engage in business activities in
the name as registered with the Registration Authorities;
3. where the Representative Offices fail to adjust their resident places as
required by the relevant government departments of China;
4. where the Representative Offices fail to announce its establishment or change
situation in accordance with these Regulations; or
5. where the Representative Offices fail to deal with the formalities in
relation to change registration, cancellation registration or record filing
thereof in accordance with these Regulations.
Article 39 Where the Representative Offices engage in any significant illegal
activity endangering the national security or social public benefits of China,
the Registration Authorities shall cancel the Registration Certificate.
Where the Representative Offices violate these Regulations and are cancelled
the establishment registration or revoked the Registration Certificate or
ordered to close by relevant government departments of China in accordance with
the laws, the foreign enterprises that establish such Representative Offices
may not, within five years upon the date of revocation, cancellation or order,
establish another representative offices within the territory of China.
Article 40 Where the Registration Authorities and their working personnel abuse
their functions and powers, commit neglect of duty, play favoritism or fail to
go through the formalities for registration or investigate the illegal
activities in accordance with these Regulations or support, cover up or connive
the illegal activities, the punishment shall be given in accordance with the
laws.
Article 41 Where the Representative Offices violate the provisions of these
Regulations, which constitute violation of public security administration, and
they shall be punished in accordance with the provisions of the Law of the
People's Republic of China on Penalties for the Violation of Public Security
Administration; where a crime is constituted, the criminal liabilities shall be
investigated in accordance with the laws.
Chapter VII Supplementary Provisions
Article 42 For the purpose of these Regulations, "Foreign
Enterprises" refers to the profit organizations established outside the
territory of the People's Republic of China in accordance with the foreign
laws.
Article 43 The charging items for registration of Representative Offices shall
be implemented in accordance with the relevant regulations of the financial
department and pricing competent department of the State Council, and the
charging standards for registration of Representative Offices shall be
implemented in accordance with the relevant regulations of the pricing
competent department and the financial department of the State Council.
Article 44 Where the enterprises established within the Hong Kong Special
Administrative Region, the Macao Special Administrative Region and the Taiwan
Province intend to establish Representative Offices, the registration
administration shall be conducted in reference to the provisions herein.
Article 45 These Regulations shall come into effect as of March 01, 2011. The
Measures for the Administration of Registration of Resident Representative
Offices of Foreign Enterprises that were approved by the State Council on March
5, 1983 and were promulgated by the original State Administration for Industry
and Commerce on March 15, 1983 shall be simultaneously repealed.