PROVISIONAL MEASURES OF GUANGDONG PROVINCIAL
PEOPLE'S GOVERNMENT FOR THE CONTROL OF THE
REGISTRATION OF RESIDENT REPRESENTATIVE OFFICES
ESTABLISHED IN GUANGDONG PROVINCE BY FOREIGN
ENTERPRISES AND OVERSEAS CHINESE, HONG KONG AND
MACAO ENTERPRISES

(Promulgated on March 18, 1981 by Guangdong
Provincial People's Government)

SUBJECT: FOREIGN REPRESENTATIVE OFFICES

ISSUING-DEPT: GUANGDONG PROVINCE

ISSUE-DATE: 03/18/1981

IMPLEMENT-DATE: 03/18/1981

LENGTH: 1722 words

TEXT:

[Article 1] These Provisional Measures are formulated in accordance with the spirit of the Provisional Regulations of the State Council of the People's Republic of China for the Control of Resident Representative Office of Foreign Enterprises and take into account the actual circumstances in Guangdong Province, in order to facilitate the development of international economic and trade relations, the expansion of economic co-operation and technological exchange between Guangdong Province and abroad and the improvement of control of resident representative offices of foreign enterprise and Overseas Chinese, Hong Kong and Macao enterprises.

[Article 2] A foreign enterprise, Overseas Chinese, Hong Kong or Macao enterprise which wishes to establish a resident representative office in Guangdong Province for business purposes shall apply to the relevant business department of the Government of the People's Republic of China or the Guangdong Provincial Foreign Economic Relations Work Commission. After approval by the relevant business department of the Government of the People's Republic of China or the Guangdong Provincial People's Government, it shall carry out registration procedures. A resident representative office shall not be established or commence business activities before approval and registration.

[Article 3] A foreign enterprise or an Overseas Chinese, Hong Kong or Macao enterprise applying to establish a resident representative office in Guangdong Province shall present the following documents and reference materials:

(1) An application from signed by the Chairman of the Board of Directors or the General Manager of the enterprise, the content of which shall include such details as the name of the proposed resident representative office, name of the person in charge, scope of business, duration of residence and location of the office;

(2) A legal certificate of industrial or commercial registration, or of incorporation, issued by the relevant authorities of the country or region in which the enterprise is located;

(3) A document of credit-worthiness issued by a financial institution which has business contacts with the enterprise;

(4) A power of attorney from the enterprise to the employees of the resident representative office, and the curriculum vitae of each employee. Resident representative office employees who are foreigners or from an Overseas Chinese, Hong Kong or Macao enterprise shall submit valid entry documents for verification;

(5) An economic or trade agreement concluded between a foreign enterprise or an Overseas Chinese, Hong Kong or Macao enterprise and a relevant department or enterprise in China or Guangdong Province.

A finance or insurance company applying to establish a resident representative office shall, in addition to the documents and reference materials as specified in paragraphs (1), (2), (4) and (5) above, at the same time submit the annual balance sheet and profit and loss statement of its head office, the articles of association of its head office and the membership of its Board of Directors.

[Article 4] A foreign enterprise or an Overseas Chinese, Hong Kong or Macao enterprise shall, within 30 days of obtaining approval for the establishment of a resident representative office, present to the Guangdong Provincial Administrative Bureau for Industry and Commerce the approval certificate and the documents and reference materials as specified in Article 3, and complete a registration from. A registration fee of 600 yuan shall be paid on the issue of a registration certificate. If registration procedures are not undertaken within the specified time limit, the original approval documents shall be returned.

[Article 5] After a resident representative office has received approval in accordance with Article 2, its employees and their families who will reside in Guangdong Province shall, pursuant to the Rules of the People's Republic of China on the Control of Foreigners Entering, Leaving, Transiting, Residing or Travelling in China, and within 24 hours of arrival at their destination, apply to the local police station to complete household registration and residence registration procedures. They shall be issued with a residence certificate which shall be cancelled when the holder leaves China at the end of a posting term.

[Article 6] If a resident representative office wishes to change its name, name of the person in charge, its scope of business, duration of residence or location, it shall apply to the original approving organ and, after obtaining approval, it shall register the change with the Guangdong Provincial Administrative Bureau for Industry and Commerce by presenting the approval documents. A fee of RMB 100 yuan shall be payable for registration of the change. An application for the appropriate amendment of residence documents shall also be submitted to the local Public Security organ.

[Article 7] A resident representative office shall present the registration certificate issued by the State Administration for Industry and Commerce of the People's Republic of China or the Guangdong Provincial Administrative Bureau for Industry and Commerce and, in accordance with the relevant regulations of the Bank of China, open an account with the local Bank of China, and go through tax registration procedures with the local tax authority. Tax shall be paid in accordance with the provisions of the relevant tax laws.

[Article 8] When importing office supplies, articles for everyday use and means of transport, a resident representative office and its employees shall declare the goods to the local Chinese Customs authority and pay Customs duty and the relevant taxes in accordance with regulations.

Imported means of transport shall be registered with the local Public Security organ, procedures for the issue of license plates and a licence shall be carried out, and the stipulated taxes and licence plate fees shall be paid as required.

The above-mentioned imports shall not be transferred or resold. If, for any reason, a transfer or resale is necessary, prior approval from Customs is required. Imported goods may only be sold to designated stores.

[Article 9] A resident representative office may, by presenting its registration certificate, apply to the relevant local business department for the rental of building space, commercial telephone lines, communication facilities etc.

[Article 10] A resident representative office which needs to recruit employees in Guangdong Province shall present the registration certificate issued by the Administrative Bureau for Industry and Commerce and apply to the local labour Bureau (or labour service company). The municipal or county Labour Bureau (or labour service company) may make recruitment arrangements with reference to measures on the recruitment of temporary employees (detailed measures shall be formulated by the Provincial Labour Bureau, in accordance with the Regulations of the State Council on Labour Management in Sino-foreign Joint Equity Enterprises). Employment procedures shall be completed retroactively for any employee recruited privately prior to the date of promulgation of these Provisional Measures.

[Article 11] Employees of a resident representative office and their family members shall abide by China's laws, decrees and relevant regulations. Their legitimate business activities and legal rights and interests shall be protected or relevant convenience shall be provided.

[Article 12] A resident representative office shall accept supervision and examination by the Administrative Bureaus for Industry and Commerce at any level in China and the relevant business departments, shall conduct its business activities within its approved and registered business scope and shall abide by the provisions of these Provisional Measures and the administrative regulations of the relevant departments in charge. If a violation occurs, a warning, fine, cancellation of the registration certificate or legal action in accordance with China's laws shall be imposed, depending upon the seriousness of the case.

[Article 13] The validity period of a Foreign Enterprise Resident Representative Office Registration Certificate shall be one year and, on its expiry, the procedures for its renewal shall be carried out and a renewal fee of RMB 300 yuan shall be payable.

[Article 14] When a term of residency expires or business activities are suspended before the expiry of the term, a resident representative office shall, 30 days prior to the termination of business activities, advise the original examining and approving organ in writing and, after any matters outstanding, such as debts and taxes, have been settled, it shall go through the procedures for cancellation of registration and return the registration certificate. A foreign enterprise or an Overseas Chinese, Hong Kong or Macao enterprise shall continue to be liable for any matters left pending by its resident representative office.

[Article 15] A resident representative office that has already been established with approval shall, within 30 days of the promulgation of these Provisional Measures, present the approval documents and register with the Guangdong Provincial Administrative Bureau for Industry and Commerce. If a resident representative office has been established without the approval of the Government of the People's Republic of China or the Guangdong Provincial People's Government, it shall, without exception, carry out supplementary application and registration procedures in accordance with the above-mentioned procedures.

[Article 16] Where a related matter is not covered by these Provisional Measures, it shall be handled in accordance with China's relevant laws, decrees and regulations.

[Article 17] When a foreign enterprise, Overseas Chinese, Hong Kong or Macao enterprise establishes a resident representative in Guangdong Province, this shall be treated in the same way as the establishment of a resident representative office and these Provisional Measures shall apply.

[Article 18] These Provisional Measures shall take effect from on the date of promulgation.