The State Council has ordered the Foreign Enterprise Representative Institution Registration and Administration Regulations (Order of State Council No. 584) to come into force on March 1st, 2011. This new regulation alters the rules for a foreign insurance institution to register a representative office in China, and it regulates the activities that a foreign insurance institution representative office can engage in once it is properly registered.
It establishes that after a foreign insurance institution has received approval from the China Insurance Regulatory Commission to open a foreign representative office the institution has 90 days to register the representative office with the State Administration of Industry and Commerce. Failure to properly register a representative office or failure to adhere to the Chinese government's requirements for the activities that a foreign representative office can engage in will result in a fine of up to RMB 500,000 ($76,000 US dollars) being levied against the representative office, and this illegal activity could hinder a foreign insurance institution's ability to expand its activities in the Chinese market in the future.
If you have any questions about your representative office's registration and the scope of activities it can engage in within China please contact us immediately.
If you would like detailed information on the China Insurance Regulatory Commission's approval and registration requirements to set up a foreign representative office please contact us.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
