|
 | English
|
|
|
Forming Companies
Parking Services
Other Service
|
|
|
Hong Kong (HK)
(852) 8102 2592
Beijing
(86 10) 5869 6579
Shanghai
(86 21) 5836 2605
info@AsiaBS.com |
|
|
|
|
|
| | > | China Company / Rep Office | > | RO ( 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.
|
- Takes around 1 month to apply.
- A Chief Representative (CR) is to be appointed
- Company should be able to present bank reference letter;
- An office premise rental agreement (or ownership document) which is valid for
foreign investor use. The term should be at least 12 months long.
|
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
- One to Foreign Economic
Relations & Trade Commission
- Another one to Administrative
Council of Industry & Commerce
|
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
on BT & IT payable
- 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%
Therefore
- Business Tax
+ Income Tax = Total Expenses x 9.2%
|
| Varies according
to client's situation and requirement. Our service ranges
from basic registration to post-registration handling.
Please contact us for quotation. |
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
- 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.
|
|
TEXT ONLY SECTION
AsiaBS - Asia Business Service Limited
Professional qualified accountants - ACCA, HKICPA
in Hong Kong ( HK ), China, BVI and Offshore
providing services of
Company Formation (Form Company), Incorporation, Business startup for Limited and Unlimited Company, Sole Proprietor, Partnership, Wholly Foreign Owned Enterprise, WFOE, Joint Venture, JV, Representative Office, RO
Bank account opening - in Hong Kong - HSBC, Hang Seng Bank etc,
Company secretary, Nominee shareholder, director, Annual maintenance, Accounting, Auditing, Taxation, Tax filing, Tax planning
|
|