Shanghai Representative Office Establishment Service
Hotline: 86-755-82143348 Email: 2355725105@qq.com
Representative Office Registration is the most inexpensive entry form for foreign enterprises to enter the Chinese market. The role of a representative office basically is to serve as a liaison office between a foreign company and its business partners in China, and to coordinate the parent enterprise activities in China (travel arrangements, promotion etc.). Representative offices are applicable for many industries: trading, shipping, consulting, etc.
Representative Office Registration-Advantages
Using a representative office as China 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 registration process (usually within one month or so)
3. Less paperwork required for application (compared to wholly foreign owned enterprises)
Representative Office Registration-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.
Representative Office Registration-Taxation
Although a RO is not to conduct business, it attracts tax as stated below:
1. Individual Income Tax (IIT)
IIT stands for Individual Income Tax which rates from 5% to 45% based on salary income exceeding more than RMB2000 for local employee and RMB 4800 for overseas employee. All the RO staff is subject to IIT if his income exceeds the limit. IIT is calculated according to such a formula: IIT= (income- limit)* rate.
2. Business Tax (BT)
BT stands for business tax which is based on monthly business operational expense, the rough rate is 5% based on your expenses. It is calculated according to the formula like this: BT= expenses/ (1-15%) ×5%.
3. Enterprise Income Tax (EIT)
EIT stands for enterprise income tax which is based on quarterly business operational expenses, the rate is 25%. It is calculated according to the formula: EIT = expenses/ (1-15%) ×10%×25%.
Representative Office Registration Contact Us
If you have further queries in Representative Office Registration, please don’t hesitate to contact ATAHK at anytime, anywhere by simply visiting ATAHK’s website www.3737580.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-21-68877368 021-31397142 021-31397141 021-58822399, or emailing to hkcfm-shanghai@163.com, or adding our skype：shtannet123. You are welcome to our company 15F, No.855 World Plaza, South Pudong Road, Pudong District, Shanghai, China.