The representative office should state its business scope on the documents during its registration. After approval (special business needs to be examined), the business scope will be printed in the certificate of registry. The representative office must operate its business within this scope.
Usually the representative office can only engage in non-direct business activities on behalf of the foreign enterprise such as communication, product promotion, market research, and technique exchange, etc. However, if the bilateral treaties clearly endow the representative office the right to directly operate business activities, the representative should operate in accordance with the bilateral treaties.
Although the law does not allow the representative office to engage in direct business activities, it does not mean that the representative office shall not engage in any economic activity. Representative office has the right to engage in necessary economic activities to maintain its operation. In this case, a contract about necessary economic activities must be signed.
Examination and Approval for Special Industries
For industries like finance, insurance, shipping industry, shipping agents, air transportation, and transportation, etc, the applicant should hand in the approval document when he registers with the administration for industry and commerce. Among the above industries, foreign enterprises of finance and insurance industries should hand in the annual balance sheet, annual income statement, contract and articles of association, board of directors and enterprise from countries without diplomatic relations with China should get approval document from the Ministry of Commerce.
1. Ministry of Communications
Foreign enterprises for sea transportation, shipping agencies, foreign enterprise for multimodal transport, and other foreign enterprises related to shipping, road transportation, ship inspection should be approved by ministry of communications before establishing office in China.
2. Civil Aviation Administration of China
Foreign enterprise for air transportation should be approved by Civil Aviation Administration of China before establishing office in China.
3. Ministry of Justice
Foreign law firms should be approved by ministry of justice before establishing office in China.
4. People’s Bank of China
Foreign financial institutions should be approved by People’s Bank of China before establishing office in China. Foreign financial institutions include commercial banks, investment banks, merchant banks, securities companies, fund management companies, foreign exchange brokerage companies, credit card companies, finance and leasing companies registered in foreign countries or regions.
5. China Insurance Regulatory Commission
Foreign insurance institution should get approval from China Insurance Regulatory Commission before establishing office in China. If it wants to establish permanent representative office in China, it should be approved by People’s Bank of China.
6. National Tourism Administration of the P.R.C
Foreign tourism administration, intergovernmental international tourism organization and foreign tourist agency should be approved by National Tourism Administration of the P.R.C.
7. Ministry of Finance
Foreign accounting firm should be approved by Chinese Institute of Certified Public Accountants or its authorized institutions.
