Decree of the State Council of the People’s Republic of China issued new regulations on "Registration Administration of Resident Representative Offices of Foreign Enterprises" on November - 19, 2010.
- New regulations are going to replace the old regulations that have been in force since 1983;
- New regulations take effect on March - 1, 2011.
The most noticeable changes are below :
| Now Regulations | New Regulations | |
| Government requirement | ||
| Annual Report Submit | Some regional need to submit (example : Shanghai, Beijing, Guangzhou). | All regional need to submit. |
| Chief Representative | 1 person | 1 person |
| Representative | No limit | 1 to 3 person |
| Penalty | ||
| Penalty of fail to provide the report on time | Depend on regional | RMB 10,000 ~ RMB 30,000 or license revocation. |
| Penalty of report false information | Depend on regional | RMB 20,000 ~ RMB 200,000 or license revocation. |
| Penalty for profit activity involvement | Below RMB 20,000 or license revocation. | RMB 50,000 ~ RMB 200,000 or license revocation. |
| Penalty for exceeding the activity scope mentioned above | Below RMB 5000 or license revocation. | RMB 10,000 ~ RMB 100,000 or license revocation. |