Regulations of Ningbo Municipality on Administration of
Resident Representative Offices of Foreign Enterprises
(Adopted at the 20th session of Standing Committee of the 10th People's Congress of Ningbo Municipality on October 12,1995, approved at the 25th session of Standing Committee of the 8th People's Congress of Zhejiang Province on December 26,1995, promulgated in the 18th announcement of the Standing Committee of Ningbo People's Congress on January 10,1996, and go into effect as of the date of its promulgation.)
Chapter I General Provisions
Article 1 With a view to fortifying the administration of the resident representative offices established in Ningbo by foreign enterprises, developing international economic trade and technique cooperation and protecting the legal rights of the resident representative offices of foreign enterprises, the present Regulations are formulated in accordance with relevant regulations of the state and in the light of the actual situation of Ningbo.
Article 2 These Regulations shall apply to the resident representative offices set up in Ningbo by foreign traders, manufacturers, shipping agents, engineering contractors, consultant companies, investment companies, leasing companies and other economic entities (hereinafter called foreign enterprises).
Article 3 The competent department of Ningbo for foreign economy and trade (hereinafter called the city's competent department for foreign economy and trade) is the examination-approval authority for foreign enterprises to set up the resident representative offices in Ningbo, the administration for industry and commerce of Ningbo (hereinafter called the city's administration for industry and commerce) is the registration authority for foreign enterprises to set up the resident representative offices in Ningbo.
Article 4 In pursuit to encouraging foreign enterprises to set up the resident representative offices in Ningbo, the competent department for foreign economy and trade, the city's administration for industry and commerce and other relative departments shall provide services according to their own duties for the resident representative offices of foreign enterprises to make business activities.
Article 5 The resident representative offices of foreign enterprises may, on their behalf and within their business scope, be engaged in such indirect business activities as business liaison, products recommendation, market research, technological exchange, etc. in our country.
Article 6 If a foreign enterprise want to set up a resident representative office in Ningbo, it shall go through the approval and registration procedures as provided for in this Regulation. Without prior approval and registration, foreign enterprises may not be engaged in business activities in name of the resident representative offices. A foreign enterprise shall be responsible legally for all the business activities conducted by its resident representative office within the territory of the People's Republic of China.
Article 7 The resident representative offices and their staff members of foreign enterprises shall abide by the laws and Regulations of the People's Republic of China, and this Regulation, shall not injure the national security and social public interests of the People's Republic of China, their legal rights and interests are protected by laws of the People's Republic of China.
Chapter II Establishment, Extension, Alteration and Termination
Article 8 If a foreign enterprise applies for establishing a resident representative office in Ningbo, it must meet the following conditions and requirements:
(1)Be legally registered in the country (region) where it is located;
(2)Enjoy a good commercial reputation;
(3)Have fixed location and permanent staff members.
Article 9 A foreign enterprise that applies for the establishment of a resident representative office shall submit to the examination and approval authorities the following documents:
(1) An application signed by its legal representative with the inclusion of: a brief introduction of the enterprise, the name of the resident representative office, the name of chief representative and representatives, scope of business, residence period, office location, etc.;
(2) A certification of legal operation (transcript) issued by the competent authority of the country (region) where the enterprise is located;
(3) A certificate of credit (original) issued by a financial institution which has business relations with the enterprise, but a foreign non-profit economic entity may be exempt from this require;
(4) Letters of authorization signed by the legal representative of the foreign enterprise for commissioning the representative(s) of the resident representative office, the resumes of the representative(s) and his (or their) identity card(s) (duplicate);
(5) Other application materials, which the examination and approval authorities deem necessary.
Article 10 The examination and approval authorities may, according to the stipulations, require the foreign enterprise which applies for the establishment of a resident representative office to have all or part of the materials for application notarized by the notary organ of the country where the enterprise is located, and to have them certified by the Chinese embassy or consulate in the country where the enterprise is located.
Article 11 If a foreign enterprise sets up a resident representative office in Ningbo, it shall choose an office location in the scope of the region people's government of the city stipulates, if it wants to choose an office location out of the scope, this shall be approved.
Article 12 A foreign enterprise that applies for the establishment of a resent representative office shall commission in written an approved service unit for foreigners in Ningbo as its undertaking agency, the service unit for foreign shall take the responsibility to submit the application to the competent department for foreign economy and trade. The competent department for foreign economy and trade shall decide whether to approve or disapprove the application within 30 days.
Article 13 The chief representative or representative(s) of the resident representative office of a foreign enterprise shall, within 30 days from the date of approval, receive the certificate of approval, and register with the city's administration for industry and commerce. The resident representative office shall go through the formalities with the local tax authority, department of public security, customs administration etc. with 30days from the day of the registration. In case of failure to go through the registration formalities within the time limit, the certificate of approval shall be invalid automatically and shall be revoked by the examination and approval authority.
Article 14 After the resident representative office of a foreign enterprise goes through the approval and registration formalities, it shall go through the formalities of bank account, import and export of goods, etc. according to relative laws and regulations of the state.
Article 15 The foreigners and their family of the resident representative office of a foreign enterprise shall apply for registration formalities of residence and temporary accommodation according to Law of Management of the People's Republic of China on Foreigners' Entering and Exiting.
Article 16 The residence period of the resident representative office of a foreign enterprise by one approval shall not longer than 3 years, where the foreign enterprise intents to extend the period, it shall, 60 days before the expiration of the period, submit an application to the competent department for foreign economy and trade. Besides the documents prescribed in article 9, the resident representative office of a foreign enterprise which applies for extension shall provide a business report of the resident representative office since the establishment of the resident representative, after approval, it shall go through the formalities of extension registration, record, etc. with relative departments.
Article 17 Where the resident representative office of a foreign enterprises requests for an alteration of its name, the chief representative and representatives, the business scope, residence period or office location, it shall, through the undertaking agency, provide the original examination and approval authorities with an application for alteration, after approval, it shall go through the formalities with the city's administration for industry and commerce for alteration, and the city's administration for industry and commerce copies to relative departments for record. Without registration, it can't alter presumptuously.
Article 18 Where a foreign enterprise applies for a revocation of its resident representative office due to the expiration of the residence period or for a termination of the business operation before such expiration, it shall, 30 days before the expiration or the termination of the business operation, go through the formalities with the city's competent department for foreign economy and trade for written record, and the formalities of the cancellation pertaining to registration of industry and commerce, tax registration and record at customs etc. shall be gone through with relevant departments where providing the certification of taxes clear-ups issued by tax authority, and the certificate of resident shall be returned. The foreign enterprise shall continually take responsibility for the things the resident representative office has not finished.
Chapter III Chief Representative, Representative(s) and Staffs
Article 19 While the resident representative office of a foreign enterprise employs chief representative, representative(s) and staffs, it shall abide of relevant regulations of the state.
Article 20 The person(s) outside our country employed as the chief representative or representative(s) by the resident representative office of a foreign enterprise shall meet one of the following qualifications:
(1)A foreign citizen with legitimate passport (excluding foreign students studying in China);
(2)A Chinese citizen who has the right of permanent resident in a foreign country;
(3)Compatriots from Hong Kong, Macao or Taiwan with valid credentials.
Where the resident representative office of a foreign enterprise employs persons outside our country as staffs, they shall go through the formalities of employment registration according to the state regulations on employment of persons from foreign country.
Article 21 Where a Chinese citizen (excluding Chinese citizen mentioned in item 2 of article 20) is employed as the thief representative or representative of the resident representative office of a foreign enterprise, it shall entrust a service unit for foreigners approved by Ningbo to process the application and report.
Article 22 Where a Chinese citizen (excluding Chinese citizen mentioned in item 2 of article 20) is employed as the staffs of the resident representative office of a foreign enterprise, it shall entrust a service unit for foreigners approved by Ningbo to process the employment.
Article 23 The staffs employed by the resident representative office of a foreign enterprise shall, within 30 days from the date of processing the employment and by presenting the contract and relevant materials, go through the formalities of record with the city's administration for industry and commerce. Without going through the formalities of record, no one can make business activities in the name of the staffs of the resident representative office.
Article 24 Where the resident representative office of a foreign enterprise need to continue the employment after the expiration of the employment period, it shall renew the formalities of employment for the staffs, and the employment period can't be longer than the residence period of the resident representative office approved.
Chapter IV Administration
Article 25 The city's competent department for foreign economy and trade shall, in accordance with relevant laws and regulations of the state as well as the present Regulation, and jointly with the city's administration for industry and commerce as well as other departments, conduct administration, supervision and inspection over the business activities of the resident representative offices of foreign enterprises.
Article 26 The resident representative office of a foreign enterprise shall submit the one-year report of the business activities to the city's competent department for foreign economy and trade as well as other relevant departments not later than January 1 of every year.
Article 27 If the resident representative office of a foreign enterprise takes one of the following actions, the city's competent department for foreign economy and trade shall impose disciplinary warning, instruct it to correct in a certain time; where it refuse to correct, the city's competent department for foreign economy and trade shall revoke the approval, and the city's administration for industry and commerce shall revoke the business license:
(1)Go beyond its scope of business activities willfully;
(2)Change its location, name of the office and the chief representative or representative(s) willfully;
(3)Employ the staffs willfully.
Article 28 Where a foreign enterprise sets up the resident representative office without approval and registration, and takes business activities in name of the staffs of the resident representative office willfully, the city's administration for industry and commerce shall inform it to stop its business activities immediately, instruct it to go through the formalities of approval and registration in a certain time; where it refuse to correct, it will be imposed a fine under 40000RMB, and the resident representative office will be banned.
Article 29 Where the resident representative office of a foreign enterprise and its staffs don't go through the formalities of temporary accommodation registration and residence, don't go through the formalities of tax registration and tax payment in time, and take such illegal actions as convey, sell and dispose willfully the duty-free import goods, use them as guarantee or rent the out, ext., the city's department of public security, tax authority, customs administration etc. shall deal with them legally according to their own responsibilities.
Chapter V Supplementary Provisions
Article 30 These Regulations shall apply, mutatis mutandis, to foreign enterprises that apply for the commission of their permanent representatives.
Article 31 These Regulations shall apply, mutatis mutandis, to enterprises in Hong Kong, Macao and Taiwan that apply for the establishment of the resident representative offices and the commission of their permanent representatives.
Article 32 Measures on Control of the Registration of the Resident Representative Office of a Foreign Enterprise will be formulated by the city's administration for industry and commerce, and be enforced after approved by the people's government of the city.
Article 33 As to the problems in the application of the present Regulation, the authority of the interpretation resides in the competent department of Ningbo for foreign economy and trade.
Article 34 These Regulations shall go into effect as of the date of its promulgation.
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