Branch Set Up


US Company Registration





China branch belongs to branch organization, it doesn’t have Independent Legal Entities qualifications. 
The branch organization governed by the head office in the business, financial, personnel, and other aspects. Economically and legally lack independence. Thus there’s no requirement of registered fully funded. The branch tax returns can be independent accounting or non-independent accounting. It is a business scope that may not exceed the business scope of the head office.

The branch's name can only add "Branch" after the head office’s name. China branch governed by the head office in the business, financial, personnel, and other aspects. It doesn’t have a Legal Entity's qualifications. Economically and legally lack independence. The branch doesn’t have an article of association, it shares assets from head office to undertake the cost. Establishment of The procedures for establishing the China branch is simple. Currently, international trade is more frequent, particularly China's trade company. Nowadays, a lot of investors establish a China trade company or China branch.

Inter Area Business Provider Company has years of experience in practical business, we provide service not only registration of China branch, but also provide a complete service including consultation, application document-making, China business registration processing, and accounting proxy. Inter Area provides one-stop service and registration of the company in Shanghai, Shenzhen, Xiamen. Investors can operate in China as Our destination and also take care of various business affairs for clients. Investors can contentedly do the investments and focus on expanding their business.



 Table of Contents

  • A capital flow of changing mainland equity ownership
  • The type of foreign investor establish the China branch
  • Benefits of the branch office
  • The establishment of the branch Q&A 



A capital flow of changing mainland equity ownership


1. 指南針

The branch is not an independent legal entity, its actual possession and use of the property is part of 
the head office property in the balance sheet of the corporation.


2. 指南針

The branch is under the head office, it needs registration through the formal procedures and provides
information about the head office.


3. 指南針

The branch doesn’t have its own article of association and also doesn’t have company management  
decision and business executive organization such us the board of directors.


4. 指南針 The branch has no independent name, as long as name branch after the corporation.                          



The type of foreign investor establish the China branch

The China branch can be classified according to its business type: 


Operating branch

                                        Operating branch

  • Function:It can overall develop business, sign the contract, and billing the invoice.
  • Tax:If the branch makes a profit, it has to pay income tax. If the branch billing the invoice, it has to pay value-added tax in that month.
  • Accounting:It uses independent accounting, average distribution accounting about business operation activity process, and the result. It has an independent organization of management, a certain amount of capital, open an account at the local bank, operate business activity, sign the economical contract with other organization, calculate profit and loss, organize accounting department, hire an accountant and complete accounting system.

Non-operating branch

                                            Non operating branch

  • Function:Only can do coordination of sales, contact service, cannot operate.
  • Tax:Although this kind of branch does not have business income and profit, it does not need to pay the income tax, but it needs the declaration of the tax.
  • Accounting:Not independent accounting. It is submitted the daily business data of the branch's business activities to the superior units and accounting by superior units. Normally, the head office transfers the capital for the branch to do some business activity. All of the income is given to the head office and the head office pays all of the expenditure. The branch does not calculate the profits and losses only record, calculate a few main indicators, and do the simple accounting.




Benefits of the branch office

  1. The branch is facilitated by the management, requirements of the financial accounting system are relatively simple.
  2. The branch is not independent legal entities, then paid in the location of the turnover tax, profits paid by the
    Corporation consolidated tax. In the beginning, the companies are often taking a loss, but losses may be used to offset the profits of the Corporation, to reduce the tax burden.
  3. The branch profits delivered to the Corporation generally not subject to the provision for income tax.
  4. The capital transfer between the branch and the Corporation, no need to burden of the tax, because there's no involvement of the ownership changes, there is a big difference between corporation tax benefit and the branch, companies business strategy highly enhance operational flexibility.




The establishment of the branch Q&A 

What are the conditions for the establishment of the China branch?
Subsidiary company (limited company) must be established in China so that the branch can be established in China such as Beijing, Shanghai, Shenzhen, Xiamen, etc. The range of the branch’s business must be set within the head office’s business range.


Is there any advantage for the establishment of the China branch?
The China branch has no capital limit and transfers income to head office does not need to pay the tax, the branch is the capital for head office, cover the profits of the head office and reduce the tax burden of the head office.


What are the rules about the establishment of the China branch?
The head office's  name + Area name(For example Beijing, Shanghai, Shenzhen, Xiamen, etc.) Branch)
EX1:Shenzhen Inter-Area Business Provider Shanghai Branch.
EX2:Inter-Area (Beijing) Business Provider Xiamen.




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