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Provisional Rules of the Shenzhen Special Economic Zone on the Resident Offices of Foreign Enterprises

Provisional Rules of the Shenzhen Special Economic Zone on the Resident Offices of Foreign Enterprises

 

 (Promulgated by the Shenzhen Municipal People' s Government on October 17, 1990, revised and promulgated by the Shenzhen Municipal People' s Government on January 29, 1994)

 

       Article 1 In order to help develop the international trade and promote the economic and technological cooperation, and to strengthen the administration of the resident offices of foreign enterprises, these rules are hereby formulated in accordance with the related stipulations of the State Council.

 

       Article 2 The resident offices of foreign enterprises referred to in these rules shall mean the resident offices set up in the Shenzhen Special Economic Zone (hereinafter referred to as the Special Zone) by the merchants, manufacturers, freight agents and other economic organizations (groups) of foreign countries.

       The resident office set up in the Special Zone by a foreign enterprise shall aim at promoting the development of the international trade and economic and technological cooperation with China, engage in non-business activities for contact on behalf of the enterprise such as making connection for operation, introducing products, investigating the market, promoting cooperation and technological exchange, providing consulting services, etc.

 

       Article 3 The Shenzhen Municipal People' s Government (hereinafter referred to as the municipal government) shall protect the legal rights and interests of the resident offices and their personnel according to law, and make things convenient for their normal activities of contacting operation.

 

       Article 4 Any foreign enterprise which applies for setting up a resident office in Shenzhen shall have good credit position and business reputation, be helpful in promoting the economic and technological cooperation and exchange, and have the ability to export the products of our country steadily and to give impetus to the development of trade.

 

       Article 5 The municipal bureau of trade development shall accept the application of a foreign enterprise to set up a resident office in the Special Zone, the registration formalities shall be gone through at the municipal bureau of industrial and commercial administration after the application has been approved by the municipal government, and the term of residence shall be 3 years for each approval.

       Without approval there shall be no operation to be allowed for any resident office.

 

       Article 6 If a foreign enterprise wants to set up a resident office in the Special Zone, it shall officially file a written application to the municipal bureau of trade development, and provide the following certificates and materials:

(1)   the application signed by the chairman of the board of directors or general manager of the enterprise, including the items such as the name of the resident office, the responsible person, the term of residence, the place of residence, etc.;

(2)   the official business license issued by the related authority of the country (region) where the enterprise is located and the qualification certificate of the effective signer of the enterprise;

(3)   the certificate of capital credit issued by a financial institution which has the business relationship with the enterprise;

(4)   the letter of authorization to appoint the personnel to the resident office and the biographical notes of these representatives;

(5)   three copies of both Application Form of Establishment (Extension) of Resident Office of Foreign Enterprise and Application Form of Change of Personnel and Items of Resident Office of Foreign Enterprise.

A corporation of this city having the authorization to undertake the foreign

economic trade or a corporation of this city to provide the internal consulting services, which have the business relationship with the foreign enterprise, shall be entrusted with the application as a responsible unit first, the above-mentioned materials and certificates shall be submitted to the approving department by the responsible unit with the attachment of a recommendation letter signed by the head of the responsible unit and the submission form for examination and approval completed according to the stipulations.

 

       Article 7 If an application is approved, the document of approval shall be brought to the municipal bureau of industrial and commercial administration to go through the formalities for registration and to obtain the registration certificate within 30 days from the date of approval. In case of failure to register after the deadline, the document of approval shall become invalid.

 

       Article 8 After a resident office is approved, its personnel of foreign nationality and from Hong Kong, Macao, Taiwan shall apply for and obtain the employment permits from the municipal corporation of foreign labor and service, then bring the approval document concerning the permits and the certificates of representatives to the Shenzhen Municipal Bureau of Public Security to go through the formalities for residence, and obtain the residence certificates.

 

       Article 9 If any resident office wants to hire a Chinese citizen, it may entrust the municipal corporation of foreign labor and service with recommendation of candidates, may also nominate the candidates itself, and shall go to the municipal corporation of labor and service to apply and go through the formalities for recruiting and using workers.

 

      Article 10 The municipal bureau of labor shall be in charge of the administration of the employees of the resident offices. The municipal bureau of labor may entrust the municipal corporation of foreign labor and service with inspection and supervision.

 

       Article 11 If a resident office needs to open an account, it shall bring the document of approval by the municipal government, the registration certificate of the resident office of foreign country (region) or the registration certificate of the resident office of the enterprises of the overseas Chinese, Hong Kong, Macao to a self-chosen bank to open an account after the bureau of foreign exchange control has approved it. The account shall be used only for deposit and withdrawal of the funds that the resident office needs for day-to-day operation, and shall not be used for the business beyond the scope of the operation of the resident office.

 

       Article 12 The resident offices and their personnel shall go to the municipal bureau of tax to go through the formalities for registration to pay taxes according to the tax law of China, and pay taxes according to regulations.

 

       Article 13 If the resident offices and their personnel import the articles for office and daily use, means of transport, and samples of products, etc., they shall apply to the municipal bureau of trade development. After approval, these imports shall be inspected and released by the customs according to the reasonable quantity for the importers own use.

       The above-mentioned articles shall not be transferred, sold without authorization. If these article need to be transferred, sold, an application shall be filed to the customs in advance, and it shall be done according to the related rules after approval.

 

       Article 14 The personnel of the resident offices and their accompanying family members shall abide by the laws, regulations of China and the related rules of the Special Zone in all their activities in the Special Zone.

 

       Article 15 If a resident office needs to change its name, responsible person, it shall file an application to the department which originally examined and approved its establishment, bring the document of approval, after the application is approved, to the municipal bureau of industrial and commercial administration to go through the formalities for the change, and comply with the formalities for the change of residence certificates at the municipal bureau of public security.

       When a resident office needs to change the address of residence, it shall apply to the municipal bureau of industrial and commercial administration.

 

       Article 16 If a resident office wants to extend the term of residence after three years, it shall file an application report for extension, 30 day in advance of the expiration of its term, to the department which originally examined and approved its establishment, and attach the summary of its operation during the term of residence and the evaluation materials provided by the related administrative departments.

 

       Article 17 If the term of a resident office expires or a resident office stops its activities in contacting operation before the term expires, a written report shall be filed 30 days in advance of stopping the operation to the department which originally examined and approved the establishment of this office, the formalities for canceling the registration shall be complied with at the municipal bureau of industrial and commercial administration, and the registration certificate shall be handed in for cancellation.

 

       Article 18 Any resident office shall not operate beyond the scope of its approved operation, and shall not be engaged in illegal activities such as illegal business, smuggling, illegal trading in foreign exchange, endangering public security, etc.

 

       Article 19 If a resident office violates these rules, the responsible departments such as the Shenzhen municipal bureaus of public security, industrial and commercial administration, labor, etc. shall impose a punishment according to the related laws and regulations of the state and the Special Zone, if the party concerned has an objection to the punishment, an application for administrative review may be filed or legal action may be taken at the people' s court according to law.

 

       Article 20 The enterprises of Hong Kong, Macao, Taiwan shall set up their resident offices in Shenzhen in the light of these rules.

 

       Article 21 These rules shall take effect as of the date of promulgation.


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