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China opportunity
RO / WFOE / JV setup
Accounting, Taxation & Auditing
Trading support
Other services
F A Q
 
 
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IT Application
 
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[ R O - Representative Office ]


Pros

- Least capital injection required. As RO is not a legal entity, actually no minimum share capital is required.

- Can handle market research, sourcing, project investigation for mother company, who in turn to execute trading function.

- Can hire local staff.

Cons

- Limitation in activity. No trading or invoicing is allowed.

- Local staff should be hired via government admitted agents.

- Although not profit center, cost expenses still attract tax liability

You are welcome to discuss whether RO is suitable for your purpose, both strategically and financially. [ Back to top ]

- Takes around 1 month to apply.

- A Chief Representative (CR) is to be appointed

- Company applying for setting up RO has to be at least 1 year old.

- Company should be able to present bank reference letter showing 6 digit average balance in past 6 months (in HK$ terms).

- An office premise rental agreement (or ownership document) which is valid for foreign investor use. The term should be at least 12 months long.

Different setup requirement may prevail in different part of China. Professional consultation is strongly recommended to avoid un-imaginable delay and problem. [ Back to top ]

Applicant company's

- Certificate of Incorporation

- Members' Register

- Directors' Register

- Last filed return to Company Registry

- Last filed return to Tax Department

- Company / business profile and reason of setting up RO

- Minutes of Board Meeting to setup RO

- Minutes of Board Meeting to authorize Chief Representative

- Bank reference letter

 

Chief Representative's

- Passport copy

- Photos

- Resume

 

Application letter

- To Foreign Economic Relations & Trade Commission

- To Administrative Council of Industry & Commerce

Chandler Partners provides hassle free services for setting up of China presence. We offer sample document as well as advice in document preparation. Please talk to our professional staff who knows local rules as well as international practice. [ Back to top ]


Although a RO is not to conduct business, it attracts tax on

- Chief Representative and local staff's Individual Income Tax (IIT)

- Business Tax base on monthly operational expenses (BT)

- Income Tax base on annual operational expenses (IT)

IIT above depends on salary amount while BT & IT roughly amounts to 10% of annual operational expenses.

Rough elaboration:

Business Tax = Deemed Turnover x 5%

Deemed Turnover x 90%= Total Expenses

Deemed Turnover = Total Expenses / 90%

Business Tax = (Total Expenses / 90%) x 5% 

Income Tax = Deemed Profit x 33%

Deemed Profit = Deemed Turnover x 10%

Deemed Turnover = Total Expenses / 90%

Income Tax = (Total Expenses / 90%) x 10% x 33%

Business Tax + Income Tax = (Total Expenses / 90%) x (5% + 10% x 33%)

Business Tax + Income Tax = (Total Expenses / 90%) x 8.3%

Business Tax + Income Tax = Total Expenses x 9.2%

Tax rate and practice is different in different part of China. We offer expertise in tax planning. [ Back to top ]

Varies according to client's situation and requirement. Our service ranges from basic registration to post-registration handling.

Chandler Partners services are priced such that SMEs can afford quality services of our experienced professionally qualified accountants. [ Back to top ]

License renewal

RO license has to be applied again once permit is expired. Maximum 3 years approval will be granted and depends on rental lease terms.

Accounting, tax filing and auditing

The tax filing has to be done on monthly and annual basis. Moreover, there are statutory audit on the expenses account and foreign currency bank account.

 

Service fee for monthly accounting and tax filing starts from Rmb 2,500 while annual audit starts from Rmb 5,000.

Chandler Partners is formed by professional accountants who are capable of providing total solution and services IN-HOUSE and making all services most efficient and cost effective to clients. [ Back to top ]