2012 Annual Compliance Reports for Shenzhen Representative Offices

According to the new “Regulations on the Registration and Administration of Representative Offices of Foreign-Invested Enterprises(guowuyuanlingNo.584)” (Regulations), representative offices (ROs) of FIEs registered and established before December 31, 2011 are required to submit the annual compliance report to the local registrars before June 30, 2012. Those who failed to file the report will be penalized according to Article 38 of the Regulation.

General filing period
March 1, 2012 to June 30, 2012

Filing procedures
For most provinces, representative offices and branches of foreign enterprises should first file the annual report online through the web site of the local Administration of Industry and Commerce.

In some regions, the whole process of annual compliance reporting can be done online (such as Shenzhen). In other regions, all the documents (online report and supporting materials) need to be printed out and brought to the local authorities in person (such as in Dalian, Shanghai, and Jiangsu Province). It is important to note that the process and necessary supporting documents can vary by region. Please check with the local authorities or contact Dezan Shira & Associates for assistance.

Case study: Reporting procedure for ROs in Shenzhen
In Shenzhen, the whole process can be done electronically and is free of charge

1. The RO should entrust a certified public accounting firm to audit its financial situation in 2011. The accounting firm should file the report with the Shenzhen Institute of Certified Public Accountants and have it uploaded to the online system of the Shenzhen AIC.
2. The RO should log into the online reporting system through either http://www.szscjg.gov.cn/ or http://www.szcredit.com.cn/ using the registration number of the RO and the name of the transactor. Once logged in, the RO should provide the serial number of the uploaded auditing report before filing the annual compliance report.
3. The RO should provide the information according to the instructions. No paper submission is needed.
4. The RO will be able to check the inspection results five business days after the submission.
5. ROs that have completed the annual compliance report do not need an additional seal on the registration certificate.
6. Related local authorities will publish the information of the successfully-filed ROs on the website.

Additional notes for filing online in Shenzhen

1. According to Article 13 of the Regulation, only ROs permitted to engage in for-profit activities under international treaties should fill in the “Amount of the annual operating income.”
2. “Number of employees” means the number of salaried personnel, excluding the chief representative.
3. “Whether the RO is lawfully approved” means whether the RO is approved under the law, administrative regulations, or by the State Council before registration. If “no,” then “whether related document is valid” should be left blank.
4. The column “other information to report” is optional. The ROs can file it on a voluntary base.

---