According to "Permanent Representative Offices of Foreign Enterprises Registration Management Regulations", each representative office shall during the period 1 March to 30 June annually, submit an annual report to the registration authority. This is the first time the institutions implement such system.
A) Annual report materials to be prepared by Rep Office
(1) Annual Report (upon the commercial inspection system fill in and print out after auditing, the Chief Representative sign, stamp and seal by the Representative bodies) ;
(2) Rep Office registration certificate ( stamped with official seal ) ;
(3) uploaded annual audit report by the CPA;
(4) the business scope has contained the pre-licensing representative bodies , the representative bodies need to submit official sealed and stamped license ( approval ) file copies.
Business scope of Rep Office which is subject to pre-approval:
- (1) International Transport operators
- (2) Certified Public Accountants
- (3) Foreign insurance institutions
- (4) Copyright involved foreign institutions and the country ( territory ) outside the copyright certification authorities and foreign and international copyright organizations
- (5) Foreign publishing houses
- (6) Overseas Radio, Film and Television agency
- (7) Foreign air transport enterprises
- (8) Foreign securities institutions
- (9) Foreign bankers
- (10) Foreign non-enterprise economic organizations
- (11) Countries that having diplomatic relations with China but non-profitable economic organization.
B) Legal basis and Responsibilities
Article VI of "Foreign Representative Offices Registration Management Regulations" provides: Rep Office shall within the period from 1 March to 30 June annually, submit an annual report to the registration authority. The annual report covers, namely, the legal existence of foreign companies, the business activities carried out and the fees charged by the accounting firm and its cost of revenue and expenditure and other relevant circumstances.
Article 38 of "Foreign Representative Offices Registration Management Regulations" provides if the following circumstances arise, the registration authority shall order rectification and impose a fine of RMB 10,000 to RMB 30,000; for overdue correction, suspension for registration the certificate:
- (1) Acts not in accordance with the provisions of this Ordinance to submit annual reports ;
- (2) Acts not in accordance with the registration authorities using the name as its business activities ;
- (3) Acts not in accordance with the Chinese government to reolocate the stationed places ;
- (4) fails to comply with the provisions of this Ordinance to announcement of its establishment, changes ;
- (5) Acts not in accordance with the provisions of this Ordinance to handle the change of registration, cancellation of registration or filing.
C) Rep Office (Organizations) replacement, renewal and final settlement corporate income tax based on audit
Since 1 March 2011, the permanent Rep Office ( Rep Office) propose to extend, renewal or change, cancellation of registration, must be carried out after the annual inspection. Commercial and Industrial City shall, during the period from 1 March to 31 August, submit the annual reports in accordance with the provisions of the new registration certificate on behalf of institutions and representatives for renewal the certificate. During the renewal period, if expired, it should apply for an extension or cancellation of registration.