Changes of WOFE

Foreign investment company - Particular Changes

Rep Office has to submit annual reports:       Each Rep Office has to prepare an audit report which is issued by an accounting firm.  The audit report must issued by the accounting firm and the said audit report should be uploaded to the Certified General Accountants Association for record.

On 10 November 2010, it was passed at the 132nd the State Council Executive meeting that , on 1 March 2011, "Permanent Representative Offices of Foreign Enterprises Registration Management Regulations" came into effect , of which, Chapter 1, Article 6 provides that: Rep Office shall in between 1 March to 30 June each year , submit an annual report to the registration authority.  The said annual report covers the legal existence of foreign companies , the institution's business activities carries out , the audit fee charged by the accounting firm , its revenue and expenditure , and other relevant circumstances.

But there is no unique national-wide implementation modal:    In some regions, online reporting is acceptable;  some areas request to provide online reporting after the paper form submitted. Paper form represents the foreign companies validly exist: the foreign companies need to go through its country or regional notary public notary organs or others such kind organs that has this right , and by the embassy of that country ( or region ) and consulates for certification.   For Hong Kong or Macau enterprises , they are required to submit certification certified by the China-Appointed Attesting Officer , and which is approved by the China Legal Service ( Hong Kong ) Limited , China Legal Services ( Macau ) Limited by transmitting stamped seal; for Taiwan enterprises, it shall submit the set verified by the local notary organization ( applicable within the scope of the Guangdong Province and the Guangdong Provincial notary  ; for those of other areas , it should be in accordance with the relevant provisions of the respective local administration for Industry and commerce ) for certification the documents.

Companies need to fill in the following information in the audit report :

1. For those corporate enterprises established by foreigners before the annual review date;

2. Sole limited liability company , listed company and those engaged in financial , securities and futures companies ;

3. For those companies engaged in the insurance , venture investment , capital verification , evaluation , guarantees , real estate brokers , immigration agency , expatriate labor intermediation , business registration agents ;

4. For those companies with its registered capital paid by installment and has not been fully paid ;

5. For those companies which have false reporting on its registered capital during the past three years , false investment , capital outflow etc.

For local enterprises , their audit report shall be issued by the accounting firm and the said audit report should be filed and upload to AICPA ; for foreign companies , their audit reports shall be issued by the accounting firm and the respective audit reports has to be uploaded to the foreign joint inspection system.