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| PROCEDURES OF THE PEOPLE'S BANK OF CHINA FOR CONTROLS... |
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(Effective Date：1983.02.01--Ineffective Date：) Article 1. These Procedures are formulated for the purposes of strengthening controls relating to establishment of resident representative offices in China by overseas Chinese and foreign banking institutions, 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. Article 2. An overseas Chinese or a foreign banking institution that actually needs to establish a resident representative office in Beijing or in a special economic zone in China may present its application. After this application for establishing its representative office in Beijing is approved, it may also, if necessary, apply for establishing its agencies in other designated cities of China. Article 3. The resident representative office of an overseas Chinese or a foreign banking institution in Beijing or in a special economic zone in China is called the "such-and-such Representative Office", its insurance company the "such-and-such Liaison Office", and its agency the "such-and-such Agency". Article 4. The application for establishing a resident representative office and its agencies in China by an overseas Chinese or a foreign banking institution must be reported to the People's Bank of China for examination and approval. The procedures are as follows: (1) An overseas Chinese or a foreign banking institution which applied for establishing a resident representative office in Beijing must submit to the People's Bank of China a written application signed by the chairman of the board of directions or by the president of its head office and addressed to the President of the People's Bank of China. The application may be presented to the People's Bank of China directly or care of a corresponding banking institution of China. (2) An overseas Chinese or a foreign banking institution which applies for establishing its agencies in other designated cities outside of Beijing or its resident representative office in a special economic zone must submit to the People's Bank of China a written application signed by the chairman of the board of directors or by the president of its head office and addressed to the President of the People's Bank of China. The application may be presented to the People's Bank of China directly or care of its branch bank in a province, municipality directly under the central authorities or autonomours region (hereafter referred to as "local branch of the people's Bank of China"). (3) The applicant shall submit the following documents and materials: (a) The Form of Application of Establishing Resident Representative Offices in the People's Republic of China by Overseas Chinese and Foreign Banking Institutions, which is issued by the People's Bank of China and to be filled out by the applicant; (b) A copy (or photocopy) of an official licence to do business or of a business registration certificate issued by the pertinent authorities of the country or region where the applicant is located. (c) The articles of association of the applicant's head office, a list of the members of its board of directors or other similar bodies, and a latest annual report setting forth its assets and liabilities and profits and losses; (d) A certificate of authorization signed by the applicant's chairman of the board of directors or by its president for the chief representative of the resident representative office, and a brief personal resume for the chief representative and for each of the representatives. If the above documents and materials are not written in Chinese or English, a Chinese or English translation must be attached. Should there by any changes in sub-paragraphs (b) and (c), the applicant must submit to the People's Bank of China a timely report, in written form, about the changes. Article 5. An overseas Chinese or a foreign banking institution, after obtaining the approval by the People's Bank of China of its application to establish a resident representative office or its agencies in China, shall, according to the relevant regulations of the General Administration for Industry and Commerce and the Ministry of Public Security of the People's Republic of China, present its approval certificate to the local administration for industry and commerce and the local public security office and go through the registration and residence procedures. Article 6. An approved resident representative office and its agencies of an overseas Chinese or a foreign banking institution shall, on presentation of the registration certificate, open an account at a local branch of the Bank of China, and must observe the regulations on foreign exchange control of the People's Republic of China. Article 7. The effective term of a resident representative office and its agencies approved by the People's Bank of China is three years. Should it be extended, the representative of the resident representative office must, within 30 days before the expiration of the effective term, present to the People's Bank of China an application for extending the term of residence signed by the chairman of the board of directors or by the president of its head office. Its term of residence can be extended for another three years upon examination and approval by the people's Bank of China; there is no limitation to the number of times for the extension of the term of residence. Article 8. The scope of work of a resident representative office and its agencies of an overseas Chinese or a foreign banking institution covers business talk, liaison, consultation, service and such other work as is not directly related to profit-making; no business activities for direct profit-making purpose are allowed. Resident representative offices located in special economic zones are allowed only to engage in the above-mentioned non-profit activities within the given special economic zone. Article 9. The chief representative and representatives of a resident representative office and its agencies of an overseas Chinese or a foreign banking institution can assume office only after the approval of the People's Bank of China. The total number of chief representative and representatives in Beijing must not exceed four, those in a special economic zone must not exceed three, and those of its agencies must not exceed two. Should there be need to exceed the number prescribed in this article, an application must be presented to the People's Bank of China for approval . Article 10. The number of the Chinese citizens within China's boundaries who are employed with recommendation by Chinese foreign affairs service units or by other organizations designated by the Chinese Government shall neither be limited nor be reported for approval. However, a resident representative office in Beijing must present in written form the list of its employed Chinese citizens to the People's Bank of China for the record, and its agencies outside of Beijing and resident representative offices in special economic zones must present in written form the lists of their employed Chinese citizens to the local branches of the People's Bank of China for the record. Article 11. When a resident representative office of an overseas Chinese or a foreign banking institution in Beijing requests a change in its name, its chief representative, its representatives or its location, when its agency requests a change in its name or its representative, or when a resident representative office in a special economic zone in China requests a change in its name or its chief representative, it shall present an application beforehand to the People's Bank of China for approval. When an agency requests a change in its location, it shall present an application to the local branch of the People's Bank of China for approval. When a resident representative office in a special economic zone in China requests a change in its representatives or its location, it shall present an application to the local branch of the People's Bank of China for approval. Article 12. If the chief representative of a resident representative office must leave his post for more than one month, a special person should be appointed beforehand to act for him, and the document of the appointment should be sent to the People's Bank of China for the record. Article 13. The personnel of resident representative offices and their agencies of overseas Chinese or foreign banking institutions shall abide by Chinese laws, decrees and relevant regulations in all their activities within China, and in entering and leaving China. Article 14. The People's Bank of China and its local branches have the right to supervise, investigate and administer the work of the resident representative offices and their agencies of overseas Chinese or foreign banking institutions. Article 15. Resident representative offices of overseas Chinese or foreign banking institutions shall, before January 15 each year, present to the People's Bank of China a report in Chinese or English of its work in the previous year, and the report should truly reflect the office's work in China. Their agencies outside of Beijing and resident representative offices in special economic zones shall, in accordance with the above requirements, present their reports to the local branches of the People's Bank of China and copies of reports to the People's Bank of China. Article 16. If an overseas Chinese or a foreign banking institution decides to withdraw its resident representative office or agencies in China, it must notify in written form, 30 days prior to the time of withdrawal, the People's Bank of China, and, after debts, taxes and other related matters are completely settled, it shall proceed with the cancellation of registration by the agency that originally issued the registration certificate and shall hand in the registration certificate for cancellation. The head office shall continue to bear responsibility for any unsettled matters of its resident representative office and its agencies. Article 17. If a resident representative office of an overseas Chinese or a foreign banking institution and its agencies and personnel violate these Procedures, the People's Bank of China and its local branches have the right to conduct an investigation and handle the matter. Article 18. These Procedures shall come into force on the day of promulgation. |
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