On 10 November 2010, it was passed at the 132nd State Council Executive Meeting that, with effect from 1 March 2011, the "Permanent Representative Offices of Foreign Enterprises Registration regulations" in Article 2 of the 1st Chapter came into effect: Foreign Enterprises Permanent Office ( hereinafter referred to as Representative Offices ), refers to the foreign enterprises. In accordance with the regulations in China, it is the establishment of foreign companies with business activities related to non-profit activities. Representative Offices does not have legal entity.
Article 14 of Chapter 2 provides that Representative Offices of foreign enterprises can engage in the business activities related to the following : -
(A) Related to products or services of foreign company, its market research, exhibition, promotional activities ;
(B) Product sales of foreign enterprises, service providers , domestic procurement , domestic investment-related liaison activities.
Rules, administrative regulations or the State Council confines that representative institutions which engaged in business activities in the preceding paragraph shall obtain prior approval. Thus, when applying for registration, standardized business scope, “Engaged in those Foreign ( Regional ) Enterprises × × × related business liaison activities” should be dropped.
On 10 November 2010, it was passed at the 132nd State Council Executive Meeting that, since 1 March 2011, with the implementation of the "Permanent Representative Offices of Foreign Enterprises Registration Regulations", for those Representative Offices which engages in business activities, penalties have been increased and the maximum limit is set.
Article 35 : Violation of the Regulations by the Representative Office which engages in profit-making activities, the registration authority shall order rectification, confiscate the illegal income, confiscate those tools, equipment, raw materials, products (goods) and other property engaged in business activities. Sentenced to those for less than RMB 500,000 but those with more than RMB 50,000, they are for fines; if the circumstances are serious, the registration certificate will be cancelled.
Article 37 : For Representative Office in violation of Article 14, which engages in business activities outside those provisions sets out, the registration authority shall order rectification ; overdue correction, a fine of RMB 10,000 and for those above, a fine to RMB 100,000 ; if the circumstances are serious, the registration certificate will be cacelled.