B.String Business Consulting Ltd.

Since Chinese’s reform and opening policy, permanent representative offices of foreign enterprises (hereinafter referred to as "representative office") for China has played an active role to attract foreign investment and the promote the socio-economic development. But in recent years, there is a small number of representative office making unauthorized changes to the registration matters, obtaining false documents to register illegal business activities and so on, which seriously damaged the management of the order on behalf of institutions. According to law, in order to strengthen the management of representative office and effectively maintain the market economic order, the notifications are as follows :

1. Implementing the notary certification system, strengthening the application materials’ approval of the representative office
   The industrial and commercial registration department should strictly implement the legal instruments outside the notary certification system and strengthen the approval of the review of application materials. When Representative office establishes or changes name, it should submit at least two years under the corporate existence of incorporation certificate and the capital credit certificate issued by financial institutions that the enterprise has business dealings with. All the documents should be notarized by the national or regional authorities and The People's Republic of China in Embassy of the country or region for notarization and certification. If Hong Kong, Macao and Taiwan coorporation set up representative offices or change the name, it should submit the application materials in accordance with existing regulations. If representative office applys for an extension, it should submit the proofs of the investor company’s operating situation.
    
2. Implementing the relevant provisions and unifying the valid date of the registration certificate
   The industrial and commercial registration bureau should strictly implement the relevent practices of "permanent representative offices of foreign enterprises on the registration of management practices". The industrial and commercial registration bureau will issue one-year registration certificate for appllying newly set-up or extension of the representative office. For the representative office which has obtained more than one-year’s registration certificate, the industrial and commercial registration bureau will renew it when the representative office is changing or extending the registration certificate.
    
3. To strictly control the number of representatives and strengthen the management of representative’s registration
   Generally, the number of representatives and their operational activities should be adapted and the number of representatives (including the chief representative) should not be more than 4 people. On the current representative office who have been more than four representatives, it only be allowed to write-off the representative and no longer allowed to add representative.
    
4. Strengthening supervision and inspection efforts and prosecuting illegal activitiess of representative office
   The industrial and commercial bureau should do on-site verification during three working days in the address of the newly established representative office which has obtained "registration certificate". If representative office submitted false documents, the industrial and commercial bureau shall be promptly investigated and dealt with it according to the law. If representative office engaged in various forms of charging service fee, industrial and comeercial bureau can penalize the representative office the same as it operated without business license. If the registration certificate is expired or changing the address without authorization or other illegal activities, the representative office will be established in categories accounting and be included in the supervision of credit classification.
    
5. Strengthening sectoral coordination and cooperation to form a monitoring force
   The industrial and commercial bureau and the police station should make further coordination and cooperation and establish sector coordination working mechanisms. The industrial and commercial bureau should inform police station the registration information and illegal activity regularly. If representative office is suspected of fraud or illegal operation of a crime, in accordance with relevant laws and regulations, industrial and commercial bureau timely transferred to the police station for handling; If Exit-Entry Administration Department of police station find there is a virtual address registration, different working office or not doing annual registration, etc. for the representative office, they should promptly inform the industrial and commercial bureau.