According to "Permanent Representative Offices of Foreign Enterprises Registration Management Regulations", it provides that each representative office shall during the period from 1 March to 30 June annually, submit an annual report to the registration authority. This is the first time to implement such system.
A) Audit Reporting Requirements
Rep office has to submit an annual report, the implementation of CPA audit report uploading through electronic method requires accounting firms and commercial inspection system interface with data capabilities. And the accounting firm must be able to upload the annual audit report of the entity.
B) Legal Basis and Responsibilities
"Foreign Representative Offices Registration Management Regulations" Article 6: Rep office shall during the period from 1 March to 30 June annually, submit an annual report to the registration authority. The annual report covers the legal existence of foreign companies, its business activities carry on, the fees charged by the accounting firm, the cost of revenue and expenditure and other relevant circumstances.
"Foreign Representative Offices Registration Management Regulations" Article 38 provides that, if the following circumstances arise, the registration authority shall order rectification and impose a fine of RMB 10,000 to RMB 30,000 ; overdue correction, suspension of registration certificate: -
1. Failing to submit annual reports in accordance with the provisions of this Ordinance ;
2. Carrying on business activities not under the name of the one registered with the registration authorities ;
3. Failing to relocate the stationed place in accordance with the requirement of government ;
4. Failing to comply with the provisions of this ordinance to announce its establishment, changes ;
5. Failing to handle changes of registration, cancellation of registration or filing in accordance with the rules and regulations.
C) Permanent Representative Office (Rep Office) replacement, Renewal and Final settlement for corporate Income Tax and Audit Requirements
Since 1 March 2011, for extension, renewal, changes of records, cancellation of registration of permanent rep office (rep office), it must be carried out after annual inspection. The Commerce and Industry Council will issue renewal certificates for those who have submitted annual reports during the period from 1 March to 31 August in accordance with the provisions for new registration certificate. During the renewal period, if the certificate expired, it has to apply for an extension or cancellation of registration.