Branch of a Foreign Corporation
Although the Company Law provides for a foreign company to register a branch in China, under prevailing practice, only registration applications of overseas companies in the financial services sector and oil exploration industries are handled.
Such a branch office does not have a Chinese legal person status and the foreign company remains civilly liable for activities carried out in China by its branch. A branch must appoint a representative or agent within the territory of China to take charge of the branch. A branch is taxed at the same rate as domestic companies and may be closed only after a formal deregistration.
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