Why an annual inspection?


The law in China for Representative Offices changes often - and you need to change with it.

 

its easy to get lost in the myriad requirements for a Representative Office (RO). Indeed, it would seem that list is in fact getting bigger rather than smaller.

 

It is important that you see the annual inspection as an opportunity rather than a problem

 

Here are some issues you will need to reflect on and that will allow you to stay on the front foot when it comes to the new regulations around Representative Office Inspections:

 

A failure to comply with the regulations as set down by the Chinese authorities could result in penalities ranging from RMB 10,000 to RMB 30,000.

 

- Severe non-compliance can result in a revocation of the Representative Office status

 

- You need to make sure that you start the process - you need to contact the authorities for an appointment and not the other way around

 

- You need to be aware of the cutoff dates for making the appointment for the inspection and not exceed these dates

 

 


5 key points you need to remember

 

Point One: Cut off date is June 30

 

Point Two: There are a number of specific documents that you need to produce in good order

 

Point Three: The list of documents is explicit (audit report, business activities statement, etc)

 

Point Four: The list of documents can also be somewhat opaque(eg. "other related information as required)

 

Point Five: The inclusion of a 'certificate of good standing' document is required. The definition of this certificate varies from country to country - obtaining the right certificate is crucial.

 

 

Let us know if you need some help

We have been helping Representative Offices in China with their compliance work for over 5 years and office inspection training or advice is just one more example of where we provide assistance to our customers.