(Promulgated by Shanghai Municipal People's Government on August 6, 1986; amended according to the Decision of Shanghai Municipal People's Government on Revising 148 Municipal Government Regulations Including the Interim Provisions of Shanghai Municipality on Handling Agricultural Machinery Accidents promulgated by Degree No 52 of Shanghai Municipal People's Government on December 20, 2010; amended and re-promulgated according to the Decision of Shanghai Municipal People's Government on Revising 12 Municipal Government Regulations Including the Provisions of Shanghai Municipality for the Supervision of Resident Representative Offices of Foreign Enterprises (For Trial Implementation) promulgated by

Decree No. 42 of Shanghai Municipal People's Government on June 21, 2016)

Article 1

With a view to facilitating the development of international economic and trade communications and technical exchanges, exercising supervision on resident representative offices of foreign enterprises, corporations and other economic and technical institutions (hereinafter referred to as the foreign enterprises) in Shanghai Municipality, these Provisions are formulated in accordance with the Interim Provisions of the State Council of the People's Republic of China on Supervising Resident Representative Offices of Foreign Enterprises, and in the light of the actual circumstances of this Municipality.

Article 2

Resident representative offices of foreign enterprises in this Municipality (hereinafter referred to as resident representative offices) are non-directly-operational organizations that shall only make business communications and render services on behalf of the enterprises that dispatched them. However, in the case of availability of the regulations provided in agreements between the governments of both countries, such regulations shall be followed.

Article 3

A foreign enterprise that establishes a resident representative office shall go through the relevant registration procedures with the industrial and commercial administrative authorities, in accordance with the relevant provisions of the State.

Article 4 

The dispatched staff of a resident representative office and their family shall abide by the Law of the People's Republic of China on the Entry and Exit of Aliens and other relevant provisions and shall apply to Shanghai Municipal Public Security Bureau for residence permits or permanent residence registration in a timely manner.

Article 5

When engaging in business activities, the representative of a resident representative office shall have a representative card issued by the registration authorities. When the said representative leaves office, the resident representative office shall go through the alteration procedures with the industrial and commercial administrative authorities and have the card returned.

Article 6

A resident representative office shall open an account with the Bank of China or any other bank approved by the State Administration of Foreign Exchange according to the relevant provisions of China's foreign exchange administration.

Article 7

A resident representative office and its dispatched staff shall complete the procedures of tax registration with the Shanghai Municipal Tax Bureau and pay taxes in accordance with the tax laws of China.

Article 8

The self-used office facilities, daily necessities and transport vehicles that are to be imported or exported by the resident representative offices and their staff shall be subject to import and export formalities in accordance with the provisions of the Chinese Customs.

Article 9

Where a resident representative office needs to install commercial telecommunications equipment for business necessity, it shall make an application to the relevant municipal telecommunication administrative department. No resident representative office is allowed to set up radio station.

Article 10

Recruitment of Chinese staff by a resident representative office shall be entrusted to a foreign service unit or other units designated by Chinese government.

A resident representative office shall not engage in any self-recruitment employment inside China.

Article 11

A resident representative office and its dispatched staff shall abide by Chinese laws, decrees and relevant regulations. Shanghai Municipal People's Government, in accordance with Chinese laws, shall protect the legitimate rights and interests of a resident representative office and its dispatched staff and provide convenience for their normal business operations.

Article 12

Business activities of a resident representative office shall be subject to supervision and inspection of the industrial and commercial administrative authorities and other relevant government departments.

Article 13

In the case that a resident representative office and/or its staff violate these Provisions or engage in other illegal activities, the industrial and commercial administrative authorities have the right to investigate and deal with the case in accordance with the law, and depending on the seriousness of circumstances, to give a warning, impose fines, confiscate illicit gains, disqualify representative status, revoke registration certificate and other penalties.

Article 14

The resident representative office shall, at the expiration of approved term, or early termination of business activities or cancellation of office, report to the Municipal Commission of Commerce in writing 30 days before the term expiration or business termination, and shall go through the formalities for cancellation of registration and revocation of the certificate with the industrial and commercial administrative authorities after liquidation of debts, taxation and completion of other related matters. The foreign enterprise concerned shall continue to take responsibility for the unsettled matters of its resident representative office in this Municipality.

Article 15

In case a resident representative office changes the name of the organization, replaces the chief representative, representatives, scope of business, duration of residence and address, it shall complete the alteration procedures with the industrial and commercial administrative authorities. In case such changes concern the location and/or personnel and their family, the resident representative office concerned shall also complete the alteration procedures with the public security authorities.

Article 16

These Provisions apply to the establishment of a resident representative office set by the enterprises of overseas Chinese or by Hong Kong or Macao enterprises.

Article 17

These Provisions shall be effective as of September 1, 1986.