Registration of Branches

Concerning to law of People Republic of China companies are able to establish branch. In establishing branch(es) the company must go through the correct registration procedures with the company registration authority and obtain the business license(s).

Under PRC law, a branch office may sue and be sued in its own name in a civil lawsuit in China. These branches that are established will not possess the status of a separate legal entity and therefore all civil liabilities will be borne by the parent company.  This method of establishing branches means that the money earned by the Chinese company may be utilized.

It is important to note that in China the process of company registration is markedly different compared to other countries.

The main steps needed to obtain a business license are as follows:

• Approval certificate from the commercial bureau.

• Business license from the Beijing Administration for Industry and Commerce.

• Registration with various bureaus, including the Tax Bureau.

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