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Shanghai Representative Office (RO)  is established by foreign companies to engage in business liaisons, quality control, product promotion, market research, exchange of technology and other permitted activities in China.

Shanghai Representative Office Registration-Features of a Representative Office in Shanghai

1. Legal status and Business scope of Shanghai representative office

The Representative Office has no qualification of a legal entity, is not allowed to directly engage in operational activities, as shown in the Business License of ROs, that a RO should not engage in direct operational activities, such issue invoices on its own, remitting outward, signing sales or purchase contracts, or receiving income from services performed but may act as business liaison, product promotion, market research, exchange of technology for its parent company.

2. Name of Shanghai representative office

The name of the Representative office should be in the form of "Name of the Enterprise + Name of the City + Representative Office (or Office)".

3. Min-registered capital of Shanghai representative office

No requirement on the capital for the establishment of a RO

4. Financial services for Shanghai representative office

The RO may open account in bank and accept the payment from the parent companies overseas. However, the remittance can only be used for the day-to-day expenses. They are not allowed to open L/C account in bank and to accept other more extensive financial services

5. Business Address of Shanghai representative office

The business address must be located in commercial buildings approved by the government.

6. Hire staff for Shanghai representative office

Cannot employ the staff directly, which must be processed through a third-party intermediate agencies with relevant qualifications.

Documents required for application

Below are the documentation of Foreign Representative Office setting up in Shanghai, Item 1-5 should be prepared before coming to Shanghai:

1. 1 Certificate of Incorporations or Equivalent document certified by Chinese embassy or Chinese consulate overseas;

2. 1 Bank Reference Letter from investor's bank to declare a good standing;

3. A brief summary of the operations and business of the parent company, such as the principal business activities, registered address, contact phone number, fax, name of the parent company; director of parent company's passport copy;

4. China Chief Representative: Resume; 6 photos [2 inch size] ; passport copy.;

5. If there are Representatives to be stationed in Shanghai in addition to the Chief Representative, the resume, 2 pictures, passport copy;

6. 2 original leasing contracts of the office premise to be used by the Representative Office; the lease term should be at least 12 months; the lease contract should be register in building administer department.

Shanghai Representative Office Registration-Registration and Post-registration Procedures

1. Pre-registration procedures for Shanghai representative office

Before commencement of registration procedures stated in Sections 2 and 3 stated below, all the documents and information listed above must be ready.

2. Registration Procedures for Shanghai representative office

The first step is to apply for registration with the local Administration for Industry and Commerce in Shanghai. Once the application is approved and the Business Registration License issued, the post-registration procedures listed in Section 3 need to be performed.

3. Post Registration Procedures for Shanghai representative office

1) Upon issuance of the Registration Certificate, we will then perform the post-establishment registration procedures, including;

2) Apply for Registration Certificate with State Administration of Industry and Commerce (SAIC);

3)  Chops made by Public Security Bureau (PSB);

4)  Apply for Organization Code License by Technical Supervision Bureau (TSB);

5)  Register with Local Taxation Bureau;

6)  State Administration of Foreign Exchange registration (SAFE);

7)  Open Foreign Currency and RMB bank account;

8)  Register with Statistical Bureau;

9)  Value Added Services: Free Visa service, 2 months accounting service and more.

Tannet Malaysia is an International Consultant Firm based in Hong Kong, Shenzhen. We provide various of services such as international company formation, global trademark registration, outsource accounting services and etc. Kindly contact us for more information.

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