Expat Services, Let's Live A Local.
+86 574 2772 1008

Be careful! Such an office location can be risky! 注意!这样的办公地点存在风险

Does the physical address of the office have to be the same as the business license? This is a common question that often arises, but most of our foreign friends are not particularly concerned about the risks associated with inconsistent addresses.



From legal compliance, tax is the most important issue we need to focus on. This is because completely ignoring the importance of this issue can lead to risks such as cancellation of the company's business license, fines, tax scrutiny and visa denials.



 Legal Compliance法律合规性 

The state requires that the company's registered address and actual business activities need to be at the same address registered in the business license. If there is a change, you need to re-submit the effective time and right to use the lease contract, real estate license and landlord ID card to the industrial and commercial departments to register the change first, and then to the tax, bank, customs and other relevant departments to register.



If you meet the government investment projects, provide a virtual registered address, the actual office is not in the place, and then other applications for the actual business address need to pay attention to the instructions. Or other registered address, can not be actual no one office, even the office is not found in the case, will bring trouble to their own business.



 Tax issues税务问题 

Tax authorities require businesses to register for tax purposes and file tax returns at their registered addresses. Inconsistencies in addresses may lead to scrutiny by the tax authorities, difficulties in filing tax returns and penalties. Although the addresses are not the same, it is relatively less risky to be in the same district.



 Visa issues签证问题 

If the business employs or invites foreigners who need to apply for a work permit, residence permit or business visa extension. When submitting the application form, it is especially important to declare that the actual business address is not the same as the registered address on the business license. This is because during the visa approval process, the police officer may arrange for the police officer in charge of the business license address to come to your home to verify the authenticity of the business. If the inconsistency leads the police officer to believe that you have made a false declaration or fraudulent visa, the situation will be more serious. The applicant may be interviewed directly or the visa may be refused.



We have encountered a number of practical operation because the actual office address and business license registration address is inconsistent, do not pay attention to the trouble brought. Here to share 2 cases to you, hope to pay attention to it.


 Case 1 

Foreign client A, who previously registered a company, was provided with a virtual address for registration by agent B. However, the agent did not know the status of the address and no one was actually in the office. However, the agent did not understand the address situation, and no one is actually in office. This year, the legal person came to China for business negotiation, and he originally applied for M visa for 30 days, which needed to be extended for business reasons. However, the foreign guest A was not aware of the situation of the registered address and had not been there personally, so after submitting the M visa extension application to the immigration authorities, he was told that the visa was refused.

Originally, it is because A in the visa application did not declare the actual office address and registered address is inconsistent with the local jurisdiction of the police officer door-to-door verification, did not find that the company operates in the business license registered address. The company was found to have declared false information and refused the visa directly.




 Case 2 

Foreign Client B, who previously registered his company with a virtual address provided by the government, thought that the government's provision must be safe and effective. However, the external accountant of his company did not give reasonable advice on financial and tax matters. And unanimously and unilaterally made tax 0 declaration for 1 year. As a result, he was audited by the government tax system and found that his actual business address was not in the same district. In the end, the company was penalized and required to move out of its original registered address. However, because of the irregularity of its tax declaration, the government of the new leased office address was not willing to accept the situation of 0 declaration for a long period of time. In the end, the company had no choice but to cancel the company. This caused a great waste of money and time and loss.


It may seem like a small issue, but many details require specialized knowledge to understand and plan so that you don't easily step on mines.


Follow us to keep up with the latest policies and news regarding your expat life.Contact our consultants to set up a China business security firewall for yourself and your organization.



宁波灵达商务服务有限公司    备案号:2020037656号-2