In course of our business, we were often asked: Sir, I rented a place. Can it be used to register as the address for the Representative Office? As such, our customers’ attention was drawn to the point on the fact that whether the rental place meets the requirements of a Representative Office.
On 10 November 2010, passed at the 132nd the State Council Executive Meeting, as the implementation of the "Permanent Representative Offices of Foreign Enterprises registration regulations" came into effect on 1 March 2011. Before that: for those Representative Office rented a portion area, they should employ those delegated and designated by the Foreign Economic and Trade Commission to register on their behalf.
With the implementation of the said regulation came into effect on 1 March 2011, Article 15 of Chapter 2 provides that the foreign companies have the right to choose the representative office address. Striking the balance between national security and public interests, the relevant departments may require changes in the office address and notify the regulatory authority promptly.
Though there is no restriction on selection on the places, it is not free to presence anywhere. It has to comply with the "Owners’ Convention” and the provisions of the local governmental department, follow the relevant formalities and procedures to obtain the legitimate use of proof.
- 1.If the real estate is owned by the company itself, they have to provide a copy of the property ownership agreement or relevant proof, and the original must be provided for verification;
- 2.In the case if the property is leased by the representative office, it is required to provide more than one year lease period of the original lease agreement and the relevant proof of property ownership (a copy of the signature or seal of the property owner, and seal of the landlord as a legal entity );
- 3.Some local government may also require a written declaration, in which the Rep Office declaring that it will not engage in production, processing, entertainment, health , beauty salons, cafes and other restricted items at the address, and to obey relevant rules and regulations, “Owners’ Convention " strictly. There will be no disturbing activities. If there is any breach, or Main ( households ) complaint , the Company will unconditionally vacate the site , restoring houses' functions.
The new regulation, Chapter 2 Article 16 provides that: The residential period of Representative Offices of Foreign enterprise should not exceed the survival period of its master company. That means, the abolition of old regulation: Representative office of Foreign enterprises usually valid for one year, and its renewal approval usually will not exceed three years, each application for extension of time limit shall not exceed three years. All these greatly reduce the Representative bodies subsisting costs.
The new regulations clearly stipulate that, Chapter 2 Article 23: Foreign Enterprises which establish Representative Offices should be in existence for at least 2 years.