Set-up a Liaison Office in China
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A liaison office is usually a foreign entity, to establish a presence in China. The primary function of a liaison office is to act as a communication and coordination hub between the parent company and the local market.
Restrictions For China Liaison Office
No Commercial Activities: The liaison office cannot engage in any revenue-generating activities, such as selling products or services.
Non-Taxable: Since it does not generate revenue, it is generally not subject to corporate taxes in the host country, though it must comply with local regulatory requirements.
No Local Sales: The liaison office is strictly prohibited from engaging in any business activities that result in revenue within China. This includes selling products or services.
No Money Transfer Outside of China: Liaison offices cannot transfer money abroad except for closing and liquidation. In other words, money coming from abroad is used for salaries and mandatory expenses.
No Invest: It is not possible for Liaison Offices to have real estate in China.
Benefits of a Liaison Office in China
Market Presence Without Full Commitment:
A liaison office allows a foreign company to establish a presence in China without the need for a full-fledged subsidiary or branch, providing a low-risk entry into the market.
Cost-Effective Operations:
Since the office is not involved in revenue-generating activities, it typically incurs lower operational costs compared to a full commercial entity.
Brand and Relationship Building:
It enables the parent company to build and maintain relationships with local stakeholders, enhancing brand visibility and reputation in China.
Market Research and Insight:
The liaison office can gather valuable market intelligence, helping the parent company understand local market dynamics, customer preferences, and potential business opportunities.
Simplified Regulatory Requirements:
Liaison offices face fewer regulatory requirements and tax obligations since they are not engaged in commercial activities, simplifying compliance.
Facilitation of Communication:
The office acts as a communication hub, ensuring efficient coordination and collaboration between the parent company and its China contacts.
Flexibility for Future Expansion:
A liaison office provides a foundation for potential future expansion into the China market, allowing the parent company to evaluate opportunities before making larger investments.
Finance and Operational Payments
Establishing a liaison office in China is an effective way for foreign companies to engage in non-commercial activities such as market research, brand representation, and business development.
Although liaison offices are restricted from conducting commercial transactions, they still need to manage operational expenses like employee salaries, rent, and office utilities. For this, opening a bank account in China is essential.
These expenses include:
·Employee salaries (both local and expatriate staff).
·Office rent and utilities.
·Payment for professional services, such as legal and accounting services.
·Other administrative costs related to running the liaison office.
Get in Touch With Us to Register a Liaison Office in China
Liaison offices are a common strategy for global companies & foreign enterpreneurs that want to explore the China market without committing to a full-scale commercial operation.
ATAHK GROUP is a China Accounting and Tax Consultancy company specialized in providing end-to-end Liaison Office formation Services for especially global companies and foreign entrepreneurs which wants to walk into to China Market
We continue to offer cost-effective solutions to global investors and individual entrepreneurs who is willing to enter the China and Asia markets smoothly and quickly, to facilitate full compliance with local legislation and to provide access to tax and social security incentives.
DISCOVER OUR SERVICES:
·Company Registration in China
·Tax Services
·Accounting & Bookeeping Services
·HR & Payroll Services
·Business Consultancy for China
·Social Security Registration
·China Work Visa
·Establishment of Association in China
Contact Us
For further queries, you are welcome to visit us anytime, anywhere by simply visiting our website www.3737580.com or calling at 86-755-82148419, or emailing to 2355725085@qq.com.