TCBC Announces to Offer Representative Office Setting Up Services in Xiamen China, Set Up RO Xiamen

SHENZHEN, China - April 29, 2015 - PRLog -- Xiamen, as an important economic city Fujian Province, locates in the eastern coastal region of China. It enjoys natural advantages in developing its economy. It is on the west coast of the Taiwan Straits, and is separated from Quemoy island only by a narrow stripe of water. Xiamen is a traditional trading port in southeast China and a famous tourist coastal city as well. Xiamen has a diverse and well-developed economy. Primary economic activities include fishing, shipbuilding, food processing, tanning, textiles, machine tool manufacturing, chemical industries, telecommunications and financial services. The city has economic and trade relations with 162 countries and regions worldwide, and benefits from foreign investment, particularly capital from Hong Kong, Macau and Taiwan.

When investors have plans on establishing representative office in Xiamen, it is better for them to acquire more information in order to run a successful business in Xiamen.  Setting up a representative office is the most inexpensive entry form for foreign enterprises to enter the Chinese market. And about 20% of investing clients have chosen Representative Office as their Xiamen business entity since setting up a representative office is cost efficient and it requires no capital investment. A representative office basically is to serve as a liaison office between a foreign company and its business partners in Xiamen, and to coordinate the parent enterprise activities in Xiamen (travel arrangements, promotion etc.). Representative offices are applicable for many industries: trading, shipping, consulting, etc. The Chinese government has a name format for anyone who wants to setup a representative office (RO) in China, the format is: country (area) + parent company name + Xiamen Representative Office.

Xiamen Representative Office Setup-Procedures
Preparing all the needed documents→ fill out the application form→ sign the agreement with ATA→ pay for the services→ submit all the needed documents→ name reservation→ apply for the business license and work card→ go to the public security bureau for stamp-make→ apply for Organization Code License & card→ apply for Setup license of the Local & National Taxation Bureau.

An RO has no legal personality, meaning it does not possess the capacity for civil rights and conduct, cannot independently assume civil liability, and is limited in its hiring ability. Chinese staff working for an RO, although not limited in number, must be employed through a human resources agency that will sign a contract with the RO on the one hand and with the Chinese staff on the other in order to ensure social security and housing fund contributions are paid on a regular basis. No more than four foreign employees can be hired per RO. Foreign staff working for ROs should have an employment relationship with the parent company abroad, and any disputes should be settled under the laws of that country

ROs are usually taxed on gross expenses with the overall tax burden around 11.75 percent of total monthly expenses; however, these rates may be increased by the relevant tax bureau according to the industry. If the chief representative is a foreign national, whether they stay in China or not, they shall be subject to individual tax based on the income derived from the RO.

“Set up Representative Office in China is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls “  says, Tom Lee, CEO and Co-Founder of Tommy China Business Consulting.

About Tommy China Business Consulting

Having been in business for over 10 years, Tommy China Business Consulting is a leading business consulting firm, providing a variety of China business services such as joint venture negotiation, government relations, business setup consulting, legal, product sourcing and   visa services. TCBC also provide extensive China travel assistances to business travelers. In the past decade, TCBC has successfully negotiated a large number of business agreements between foreign firms and Chinese manufacturers and have set up many WFOEs in China.

For more information about it, please visit Http;//www.tommyconsulting.com