This month the State Administration of Industry and Commerce (SAIC) released new regulations regarding the registration of Representative Offices in China. This is a means for the government to create additional barriers for the establishment of Representative Offices in China in order to dilute their appeal.
We will keep you updated as more information becomes available. In the meantime, if you have any questions, please feel free to get in touch for more information about establishing a China Buying Office.
The changes include the following :
1. An Overseas company must be at least 2 years old before they qualify to establish representative office in China.
2. The validity of Rep. Offices has now been reduced from 3 years to 1 year. Current Rep. Office licenses will be honored; however, license renewals will only be for 1 year subsequently.
3. Notarized and attested incorporation documents will be required for every Rep. Office renewal.
4. The Bank Statement of Credibility of the overseas parent company will also need to be notarized and attested along with its incorporation documents.
5. Newly formed Rep. Offices will be limited to only 4 foreign representatives including the Chief Representative. Current Rep. Offices with more than 4 representatives will not be allowed to add additional representatives but will not be required to decrease their numbers. The number of local employees hired through dispatching services to work at a Rep. Office appears to not be affected.