ocument of transport or by separate notice disp +G

ocument of transport or by separate notice disp +G Provisional Regulations for the Establishment of RepresentativeOffices in China by Overseas Chinese and Foreign Financial Instituti (Issued by the People's Bank of China on February 1, 1983) In case of discrepancy, the original version in Chinese shall prevail.

Whole Document Provisional Regulations for the Establishment of Representative Offices in China by Overseas Chinese and Foreign Financial Institutions (Issued by the People's Bank of China on February 1, 1983) Article 1 In accordance with the Interim Provisions of the State Council of the People's Republic of China for the Control of Resident Representative Offices of Foreign Enterprises, the following regulations are formulated with a view to exercising more effective control over the establishment of representative offices of overseas Chinese and foreign financial institutions in the People's Republic of China.

Article 2 Any overseas Chinese or foreign financial institution, if it deems it necessary, may apply for permission to establish a representative office(s) in Beijing and/or in any of the special economic zones in China.

After a representative office is set up in Beijing with due approval, the represented institution may, if necessary, secure further permission to open a subordinate representative office(s) in other designated cities.

Article 3 Representative offices set up by overseas Chinese and foreign financial institutions in Beijing and the special economic zones shall bear names in immediate conjunction with the description "representative office"; Such offices set up by overseas Chinese or foreign insurance companies shall bear names in immediate conjunction with the description "liaison office"; Additional offices set up in other designated cities shall bear names in immediate conjunction with the description "subordinate representative office", or "sub-rep office" for short.

Article 4 Overseas Chinese or foreign financial institutions desiring to establish representative offices and subordinate representative offices in China shall apply to the People's Bank of China (hereinafter referred to as the Bank) in conformity with the following procedure: a) For the purpose of establishing a representative office in Beijing, the head office of the applying institution shall address to the governor of the Bank a letter of application duly signed by the chairman of the board or the chief executive of the general management. The application may be sent direct to the Bank or forwarded through a relevant Chinese financial institution.

b) For the purpose of establishing a representative office in a special economic zone or a subordinate representative office in other designated cities, the head office of the applying institution shall address to the governor of the Bank a letter of application duly signed by the chairman of the board or the chief executive of the general management. The application may be sent direct to the Bank or forwarded through the provincial, municipal or autonomous regional branch of the Bank (hereinafter referred to as PBC local branch).

c) The applying institution shall submit the following documents and reference materials: 1. An Application Form for Overseas Chinese or Foreign Financial Institutions Establishing Representative Offices in the People's Republic of China, which is obtainable from the Bank, filled out by the applying institution; 2. A photostatic copy of the charter or business licence granted by the authorities of the country or region in which the institution operates; 3. Articles of association and by-laws, a name list of the board of directors or a similar organization controlling the institution, the latest balance sheet and statement of profit and loss of the applying institution; 4. Power of attorney given to the chief representative and signed by the chairman of the board or the chief executive of the general management; curricula vitae of the chief representative, other representative(s), foreign staff member(s) and employee(s) from Hongkong and Macao.

Chinese or English translations shall be submitted with the documents and materials if they are in other languages.

The applying institution shall inform the Bank in writing of any changes in the submitted documents and materials required in Points 2 and 3.

Article 5 The overseas Chinese or foreign financial institution, when granted permission to establish a representative office or subordinate representative office in China, shall in accordance with the relevant regulations present the approval certificate to the local Administrative Bureau for Industry and Commerce and the Public Security Bureau and go through the formalities for registration and residence.

Article 6 Each of the approved representative offices and subordinate representative offices of overseas Chinese and foreign financial institutions shall on the strength of the registration certificate open an account with the Bank of China and observe exchange control regulations of the People's Republic of China.

Article 7 The representative offices and subordinate representative offices are approved by the Bank for a term of three years. If an extension is desired, the representative shall submit to the Bank thirty days before the term expires a letter of application signed by the chairman of the board or the chief executive of the general management. There is no limit on the number of extensions.

Article 8 The representative offices and subordinate representative offices set up by overseas Chinese and foreign financial institutions shall operate within the scope of nonprofit activities such as carrying on business negotiations, acting as liaison, providing consultancy and other services.

They shall not engage in any direct profit-making business activities.

The representative offices in a special economic zone shall only engage in such non-profit activities as mentioned above within the confines of the special economic zone.

Article 9 Chief representatives, other representatives, foreign staff members and employees from Hongkong and Macao shall be approved by the Bank before assuming their duties in China. Their total number shall not be more than a) four in a representative office in Beijing, b) three in a representative office in a special economic zone, and c) two in a subordinate representative office in other designated cities.

In a particular case where more are needed than the prescribed number, an application shall be sent to the Bank for approval.

Article 10 There is no limit on the number of local Chinese citizens that a representative office or subordinate representative office may decide to employ on the recommendation of the Chinese personnel or service departments; Nor is the Bank's approval required for such employment.

However, for the purpose of record, a name list of the local Chinese employees a) of a representative office in Beijing shall be filed with the Bank and b) of a representative office in a special economic zone and a subordinate representative office in other cities shall be filed with the PBC local branch.

Article 11 Reports shall be filed with the Bank for approval in cases a) where a representative office in Beijing desires to change its name, address or to replace its chief representative, other representative(s), foreign staff member(s) or employee(s) from Hongkong and Macao; or b) where a subordinate representative office desires to change its name or replace its representative(s), foreign staff member(s) or employe(s) from Hongkong and Macao; or c) where a representative office in a special economic zone desires to change its name or replace its chief representative.

Reports shall be filed with the PBC local branch for approval in cases a) where a representative office in a special economic zone desires to change its address or representative(s), foreign staff member(s) or employee(s) from Hongkong and Macao; or b) where a subordinate representative office desires to change its address.

Article 12 When the chief representative of a representative office is absent from office for a period longer than a month, someone else shall be designated to assume responsibilities during his absence. A copy of the designation document shall be sent to the Bank for record.

Article 13 Members of representative offices and subordinate representative offices of overseas Chinese and foreign financial institutions must observe Chinese laws, decrees, rules and regulations in all their activities within China and in entering and leaving China.

Article 14 The Bank and its local branches retain the rights to supervise, regulate and examine the work of the representative offices and subordinate representative offices of overseas Chinese and foreign financial institutions.

Article 15 Every year before the fifteenth of January, each of the representative offices of overseas Chinese and foreign financial institutions in Beijing shall submit to the Bank a report in Chinese or in English giving a faithful account of its work in China in the preceding year.

Subordinate representative offices in other cities and representative offices in special economic zones shall file such reports with the PBC local branches, copies of which shall be sent to the Bank for record.

Article 16 If an overseas Chinese or foreign financial institution decides to close its representative office or subordinate representative office in China, it shall notify the Bank in writing thirty days before the date of closing. After paying off its debts and taxes and clearing off other obligations, the representative office or subordinate representative office shall go through the formalities of cancelling its registration and turning in the certificate at the registration agency with which it has registered. The head office of the represented institution shall be held responsible for any obligations its representative office(s) or subordinate representative office(s) leaves unsettled.

Article 17 The Bank and its local branches exercise the rights of examination and penalty in case of violation of these regulations by any representative offices, subordinate representative offices or their members.

Article 18 The "Provisional Regulations" comes into force on the date of issue.

ive shall submit to the Bank thirty days before the term expires a letter of application signed by the chairman of the board or the chief executive of the general management. There is no limit on the number of extensions.

Article 8 The representative offices and subordinate representative offices set up by overseas Chinese and foreign financial institutions shall operate within the scope of nonprofit activities such as carrying on business negotiations, acting as liaison, providing consultancy and other services.

They shall not engage in any direct profit-making business activities.

The representative offices in a special economic zone shall only engage in such non-profit activities as mentioned above within the confines of the special economic zone.

Article 9 Chief representatives, other representatives, foreign staff members and employees from Hongkong and Macao shall be approved by the Bank before assuming their duties in China. Their total number shall not be more than a) four in a representative office in Beijing, b) three in a representative office in a special economic zone, and c) two in a subordinate representative office in other designated cities.

In a particular case where more are needed than the prescribed number, an application shall be sent to the Bank for approval.

Article 10 There is no limit on the number of local Chinese citizens that a representative office or subordinate representative office may decide to employ on the recommendation of the Chinese personnel or service departments; Nor is the Bank's approval required for such employment.

However, for the purpose of record, a name list of the local Chinese employees a) of a representative office in Beijing shall be filed with the Bank and b) of a representative office in a special economic zone and a subordinate representative office in other cities shall be filed with the PBC local branch.

Article 11 Reports shall be filed with the Bank for approval in cases a) where a representative office in Beijing desires to change its name, address or to replace its chief representative, other representative(s), foreign staff member(s) or employee(s) from Hongkong and Macao; or b) where a subordinate representative office desires to change its name or replace its representative(s), foreign staff member(s) or employe(s) from Hongkong and Macao; or c) where a representative office in a special economic zone desires to change its name or replace its chief representative.

Reports shall be filed with the PBC local branch for approval in cases a) where a representative office in a special economic zone desires to change its address or representative(s), foreign staff member(s) or employee(s) from Hongkong and Macao; or b) where a subordinate representative office desires to change its address.

Article 12 When the chief representative of a representative office is absent from office for a period longer than a month, someone else shall be designated to assume responsibilities during his absence. A copy of the designation document shall be sent to the Bank for record.

Article 13 Members of representative offices and subordinate representative offices of overseas Chinese and foreign financial institutions must observe Chinese laws, decrees, rules and regulations in all their activities within China and in entering and leaving China.

Article 14 The Bank and its local branches retain the rights to supervise, regulate and examine the work of the representative offices and subordinate representative offices of overseas Chinese and foreign financial institutions.

Article 15 Every year before the fifteenth of January, each of the representative offices of overseas Chinese and foreign financial institutions in Beijing shall submit to the Bank a report in Chinese or in English giving a faithful account of its work in China in the preceding year.

Subordinate representative offices in other cities and representative offices in special economic zones shall file such reports with the PBC local branches, copies of which shall be sent to the Bank for record.

Article 16 If an overseas Chinese or foreign financial institution decides to close its representative office or subordinate representative office in China, it shall notify the Bank in writing thirty days before the date of closing. After paying off its debts and taxes and clearing off other obligations, the representative office or subordinate representative office shall go through the formalities of cancelling its registration and turning in the certificate at the registration agency with which it has registered. The head office of the represented institution shall be held responsible for any obligations its representative office(s) or subordinate representative office(s) leaves unsettled.

Article 17 The Bank and its local branches exercise the rights of examination and penalty in case of violation of these regulations by any representative offices, subordinate representative offices or their members.

Article 18 The "Provisional Regulations" comes into force on the date of issue.