How to arrange a registered address for your established foreign legal entities in mainland China

China Business Facts:
How to arrange a registered address for your established foreign legal entities in mainland China

Having a registered address in China is a compulsory requirement for an establishment of foreign legal entities, including representative offices (RO), wholly foreign-owned enterprises (WFOE) and foreign-invested enterprise (FIE), in mainland China. Accordingly, relevant legal documents such as a Certificate of Premise Ownership (CPO, in Chinese “房屋所有权证”), leasing agreement, identification of the owner of the premise, etc. must be submitted to local Administrative Bureau for Industry and Commerce (AIC).

Points to be considered in general:
1. It is necessary to show to AIC that the premise can be used for commercial/business purpose. This requires the owner of the premise to inform local Department of Housing Management (DHM) of the method of using the premise, followed by a few application procedures of getting the approval from DHM;

2. If the owner of the premise is a citizen of Hong Kong or Macau, his/her home return certificate (in Chinese “回乡证”) is also needed as one of the legal documents.

3. It is always advisable to appoint a Chinese lawyer to review and adjust the leasing agreement for you, considering that the owner or the agent of the premise usually provides standard leasing contract which may contain unreasonable terms that are harmful for your interests.

Expenses:
The expense varieties, heavily depending on several criteria such as the location of the premise, the facilities of the premise, the extra administration fee around the premise, whether professional secretarial service is needed, etc.  

For example, in Shanghai right now,the average expense for a Grade A building is RMB 8 per sqm per day ( RMB 2,920/sqm/year).

Op de hoogte blijven?

Schrijf je in en ontvang de laatste nieuwsupdates, artikelen, blogs en evenement notificaties.