Provisions for examination and approval:
Shanghai Foreign Economic Relations and Trade exercises its rights to examine and approve the resident representative offices of foreign enterprises according to the No.3 Order of 1995 of the Ministry of Foreign Trade and Economy Cooperation issued on 13th, Feb, 1995, the "Rules for Implementation of the Examination and Approval on the Resident Representative Office of Foreign Enterprise in China".
For the examination, approval and control of the resident representative enterprise offices from Taiwan, Hong Kong and Macao, refer to the aforesaid "Rules for Implementation".

The scope of examination and approval:
According to Article 4 of the Interim Provisions of the State Council of the People's Republic of China for the Control of the Resident Representative Office of Foreign Enterprises, and Article 2 of the Rules for Implementation of the Examination and Approval on the Resident Representative Office of Foreign Enterprise in China issued by the Ministry of Foreign Trade & Economic Cooperation, Shanghai Foreign Economic Relations and Trade Commission (hereinafter referred to as the examination and approval authority) is in charge of the examination and approval of applications for establishing resident representative offices in Shanghai by foreign enterprises and those from Taiwan. Hong Kong and Macao (the trader, manufacturer, forwarding agency, contractor, consulting agency, advertising agency, investment company, leasing company, and other economic organizations. Enterprises outside the lines of business mentioned above shall, according to the nature of their operations, apply to the appropriate commissions, ministries or bureaus of the Government of the People's Republic of China.

The nature of the resident representative offices:
A resident representative office is a non-direct operational unit whose work falls within the scope of nonprofit activities such as business liaison, product introduction, market investigation and technology exchange. It does not have legal personnel and its civil liability is the responsibility of its home institution.

Procedures for application:
According to Article 10 of the Rules for Implementation of the Examination and Approval on the Resident Representative Office in China, the application for the establishment of a resident representative office by foreign enterprises and those from Taiwan, Hong Kong and Macao should be entrusted to an undertaker such as a foreign trade company, foreign economic and trade organization, or a service unit for foreigners which has been approved and authorized by the examination and approval authority. The undertaker is responsible for submitting necessary materials to the examination and approval authority and going through the application procedure for foreign enterprises and those from Taiwan, Hong Kong and Macao.

Essential conditions:

1. The applying foreign enterprises and those from Taiwan, Hong Kong and Macao shall be legally registered in the country or region where the applicant enterprise is located.
2. The applying foreign enterprises and those from Taiwan, Hong Kong and Macao shall have a sound reputation.
3. The applying foreign enterprises and those from Taiwan, Hong Kong and Macao shall provide authentic and reliable documents as required by the Rules of Implementation.
4. The applying foreign enterprises and those from Taiwan, Hong Kong and Macao shall go through the application formalities in accordance with the Rules of Implementation.