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Application Procedures of High-tech Enterprise in China
High-tech enterprise refers to resident enpterprises registered in China (Hongkong, Taiwan and Macau are excluded), who consistently engages in research & development and transfers technological achievements to form the core independent intellectual property rights within the high-tech fields supported by the state.
Activities Allowed for Representative Office of Foreign (Region) Enterprise in China
According to Article 2 of the PRC Regulations on Administration of Registration of Representative Office of Foreign Enterprise, representative offices of foreign enterprise (hereinafter referred to as “representative office / RO” refers to the offices established by foreign (region) enterprises in accordance with the Regulations within China engaging in non-profit activities that are related to their business. A representative office / RO is not a separate legal entity.
Features of a China Representative Office
A Permanent Representative office of a foreign enterprise is a non-legal entity operating in China representing its parent company. A representative office is not allowed to engage itself in business activities, issue invoices on its own, signing sales or purchase contracts, or receiving income from services performed but may act as a liaison and promotion office for its parent company.
Scope of Business of a China Representative Office
The business scope of a Permanent Representative Office (RO, also known as Resident Representative Office) should be clearly stated in the application document prepared by the applying foreign enterprise. After approval by the relevant authority and registration with the AIC, the business scope will be stated in the Registration Certificate of the Permanent Representative Office (RO).
China WFOE Registration Guide (1) - Main Features of a Wholly Foreign Owned Enterprise
Limited Liability Company (LLC), a Company type generally referred to as a Wholly Foreign Owned Enterprise (WFOE). The Wholly Foreign Owned Enterprise (WFOE, also known as Wholly Owned Foreign Enterprises, WOFEs) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology.
China WFOE Registration Guide (15) - Materials Required for the Registration of a China Wholly Foreign Owned Enterprise (WFOE)
Name of the company to be registered,Particulars of the Shareholder,Legalised identification documents of the shareholder,Organisational Chart and Beneficiary Owner.Legal Representative,A photocopy of the identification document (i.e. passport for foreigner or identity card for Chinese national) and full residential address of the legal representative.
China WFOE Registration Guide (16) - Registration Licences and Certificates Obtained after Incorporation of WFOE
It is part of a company's incorporation process to obtain various certificates and stamps/seals from Chinese government authorities. These various certificates and stamps/seals are required in the company’s dealings with the government authorities. Many foreign investors may be confused about the usage of these items. What follows is a description of each of the certificates and stamps/seals obtained after the incorporation of a WFOE in China.
Legal Status of a China Representative Office
Permanent Representative Offices (ROs, also known as Resident Representative Offices) registered in China are non-legal entity and therefore not considered to be separate and independent from the foreign enterprises. Chinese laws do not expressly provide that ROs should bear liabilities independently with their own assets (i.e. limited liability), ROs may be deemed to be part of the foreign enterprise.
Chief Representative of a China Representative Office
The Chief Representative of a China Representative Office is the person who is responsible for the daily operation of the Representative Office (RO). However, Chinese laws do not clearly specify the limitation of the authorities of a Chief Representative or a Representative. In the absence of express statutory provisions, it is not clear whether or not documents signed by a Chief Representative
Employment of Chinese Staff by Representative Offices
Representative Offices, also known Permanent Representative Offices or Resident Representative Offices, cannot employ Chinese staff directly. Chinese staff can only be employed through local foreign service companies or other entities designated by the local government. These foreign service companies will enter into employment contracts with Chinese individuals and should be responsible for paying salaries