The registration of a liaison office in China can be made with complete assistance offered by our team of agents specialized in opening a company in China who can also offer support for any type of entity you want to incorporate.
| Quick Facts | |
|---|---|
| The purpose of a liaison office in China | For: – business promotion and research activities, – conducting marketing research, – negotiations with potential local customers |
How is a liaison office known in China? | Representative office or RO |
How can a representative office be registered in China? | By presenting a copy of the Articles of Association of the parent company and register them with the relevant authorities |
| Can a liaison office in China have commercial activities? (YES/NO) | NO |
| Contracting potential clients and partners (YES/NO) | YES |
| Local agent required (YES/NO) | YES |
| Specific limitation | An RO can have a maximum of 4 foreign employees. |
| Bank account for a liaison office in China | Required |
| Allowed to invoice local customers | Not possible |
| Is RO in China considered a legal entity? | No, liaison offices in China do not have legal entity. |
| The costs of opening a representative office in China | Supported by the parent company that is promoted in China |
| Time frame to register a liaison office in China | A few months, depending on the location |
| Business advertising through a liaison office in China | The activities, products and services of a foreign company can be promoted in China through a liaison office. |
| Can a liason office have local employees? | Not permitted |
| Why choose our company formation agents in China? | We can: – assist in opening a liaison office by managing the paperwork, – register with the local authorities and agencies, – provide customized services at affordable prices. |
Table of Contents
What kind of entities can open liaison offices in China?
Those that can open a business in China under the form of a representative office include:
- foreign companies;
- organizations;
- individuals.
What steps must I complete for the registration?
The process includes presenting a few important documents, such as the board resolution to establish the office, the parent company’s financial statements, and a rental contract for the office space. The initial approval is generally settled for 3 years, with the possibility of extension upon submission. Let’s review other formalities of registering a liaison office in China:
- obtain approval from the Ministry of Commerce;
- obtain an organization code certificate;
- obtain approval for the appointment of the liaison legal representative.
Do I need to obtain approval for the registration of a liaison office?
Yes, opening a liaison office in China requires approval from the local Chinese authorities.
Does the parent company need to abide by any basic obligations?
Yes. A basic rule applicable to foreign parent companies is to operate on their markets overseas for at least 2 years at the moment when they make the request to set up a representative office in China.
Who is responsible for the activities and management of the liaison office?
The parent company holds full responsibility, given that the liaison office is a structure dependent on the parent. It has similar traits as the ones of a branch office, the only difference being that the branch is incorporated for commercial activities – more details on this entity are available here.
What are the activities that can be carried out through a liaison office in China?
The general functions of a representative office in China may include:
- market research – gathering information and potential leads;
- promotion – promoting the parent company’s products or services to Chinese investorsor clients;
- communication – managing communication with the parent company;
- events participation – attend to trade fairs in order to promote products or the services of the head company;
- administrative support for the company the office represents.
What are the limitations of a liaison office?
The liaison office in China has certain limitations:
- can only conduct activities related to the head office;
- cannot engage in any business activities that result in revenues – this also refers to selling products or services;
- cannot transfer money abroad except for closing and liquidation – in other words, money coming from overseas is used for salaries and compulsory expenses of the liaison officein question.
Do I need to subscribe a minimum share capital?
No, the procedure forcompany formation in Chinafor the liaison office does not require investors to subscribe a minimum share capital.
Is it required to open a bank account in China?
Yes. The local bank accountis necessary for a variety of transactions, including for transferring funds from the parent company to the representative office (the parent is responsible for covering the liaison office’s operating costs).
How long does it take to incorporate a liaison office in China?
It takes at least 4 to 6 weeks to complete the process of incorporation.
What are the conditions for foreign employees of a liaison office in China?
As a general condition, foreign staff should obtain certain documents. The first one is to have a work permit. They will also have to obtain a residency permit. And before hey begin working in China,they have to go through a medical check-up to prove that they are fit for work.
Do I need to hire a minimum/ maximum number of employees?
If you register a liaison office, you can only hire up to 4 foreign employees. Rules concerning this matter can vary based on the Chinese provinceselected for incorporation and this is why we recommend you address our team of consultants, who can offer detailed information regarding this rule.
Here is an infographic that explains how you can set up a liaison office in China:
What is the minimum duration of the lease contract?
The minimum duration of the rental contract must be 12 months. The liaison office must have a place of business in China, which can be secured by renting an appropriate office space.
What is deemed as a suitable registered address for a liaison office?
The liaison office must have a registered address in China which must be a physical place for doing business, where the entity can conduct its business operations and which is used for its daily activities. The location must be approved as a place for business activities.
What are the reporting requirements for a liaison office in China?
The representative offices in China need to file the annual report with information about the foreign company, the payment balance, and about ongoing business activities.
We invite you tocontact our specialists in company formationfor more details on the registration of a liaison office in China.
