On November 19, 2010, the State Council promulgated the Regulations on the Administration of Registrations by Resident Representative Offices of Foreign Enterprises (“Rep Office Regulations”), which will come into effect on March 1, 2011.
According to the Rep Office Regulations, resident representative offices of foreign enterprises shall, at any time from March 1 to June 30 each year, submit an annual report to the registration authority, namely the State Administration for Industry and Commerce or its local counterparts. Matters required to be registered include name of representative office, name of chief representative, business scope, place of office, term of office, name of foreign enterprise and its domicile.
In addition, representative offices may not engage in any profit-making activities, but may engage in the following activities in connection with the business of foreign enterprises:
- Market survey, display, publicity activities in connection with the products or services of foreign enterprises; and
- Liaison activities in connection with products sales, services provision, domestic procurement and domestic investment of foreign enterprises.
Punishment for violation of the Rep Office Regulations include a fine ranging from 1,000 RMB to 500,000 RMB, confiscation of unjust enrichment and tools, equipment, raw materials, products (commodities) and other property that are specially used for engaging in profit-making activities, and revocation of the representative office’s registration certificate.
- Regulations on Administration of Registrations by Resident Representative Offices of Foreign Enterprises
- Issuing Authority: the State Council
- Date of Issuance: November 19, 2010 / Effective Date: March 1, 2011