Legal consequences that a foreign company sets up arbitrarily permanent representative office in China and engages in profitable operation

If a foreign company sets up arbitrarily a representative office or engages in operation, without registration, the registration organ is entitled to stop its activities and fines a penalty of RMB 50,000 – 200, 000.

If the representative offends against regulations to engage in profitable operation, the registration organ will order to correction and confiscate illegal income as well as instruments, equipment, raw materials, products, etc. in addition to a penalty of RMB 50, 000 to 500, 000. If being serious, the registration certificate shall be written off.