Shanghai Expats
Business

Renewal Rep Office business licence / Closing Rep Office

107 views

H
helpme99 Original post #1
Our business license for our Rep Office is ending in a few months and I am looking for some information on the costs and procedures of renewing it. I have read that the policy has changed and we can now only renew for 1 year instead of 3 years. I was quoted 3000 RMB service fee + 500 RMB government fee for renewal. Does it sound okay? Is it possible to do this by ourselves? What about closing the rep office? I was quoted 12.000rmb, which seems very high to me. Thanks for any help!

3 Replies

L
LaowaiTom #2
Hello there I remember we paid a similar agent fee (RMB 2500 to 3000) for extending the business license for a rep office. The RMB 12.000 quote for closing the rep office is a joke. We did part of the job without an agent. I remember we paid around RMB 2500 to the agent to close down a bank account, and other connections or permit with the government, but the agent was not able to help us with the tax bureau which was a major pain in the ass because there were a lot of problems with the accounts. So in the end we solved the problem and paid an auditor RMB 3000 to approve the accounts so we could close down at the tax bureau ( we also had to pay some outstanding tax). After that, we could finally go to the bureau of industry and commerce and apply for closure of the business license and deliver all company chops. With the right employees, I think you can do most of it yourself. Good luck
H
helpme99 #3
We don’t really have the right employees so will probably have to hire someone. The quote does include the tax de-registration. I think this is the most expensive part normally because it’s a pain. We moved from Pudong to Changning before and tax stuff cost us a lot of time.
K
KenXu #4
Closing a China rep office can take longer than a year. The costs associated with the follow-up and staff to support that are quite high, hence the agency quoting you 12k, I was told that we can’t do it for 12k, we would be taking a loss. As mentioned you need to get An Audit report done to basically say that you don’t owe any money to the government. If you do, pay off any excess taxes. You need to get a lease statement (Doesn’t have to be wordy or complicated) from your office landlord. Employee release statement from all of your employees. A bank release statement. Solve any problems and all issues related to your rep office. Then submit the following to the bureau of industry and commerce. Application form for closing of your rep office. Original Copy of your rep office License. Any government fees that they ask for. Then you wait for the government check and approval and hopefully, in 12 to 18 months you’ve closed your rep office.

Sign in to join the discussion.