- Original Poster
- #1
Recently I registered a representative office of my UK limited company in China, mainly in order for my business partner to be able to get a work visa and stay in China full time. The rep office is basically just one person, it is legally registered in China, its purpose is to search for new clients in China by my partner.
The rep office has its own address (virtual office), local bank account, 1 employee (the mentioned partner), accounting done by a local accountant. It is supposed to file annual statements but it cannot issue any invoices and make any sales. All sales must be done by the UK limited company directly.
Now, in terms of UK Limited company accounting, should I treat it as a separate entity, or should I book all the expenses of this rep office in my UK company's accounting.
Eg. Every month the UK company transfers 2000GBP to the rep office bank account, this covers the rep office expenses (1 employee salary, virtual office, other administrative fees). Then I have 2 options:
1. book this 2000GBP as general expenses in the UK limited company and forget it.
2. create a separate bank account in the accounting software, import the statement from the rep office bank account and book every single cost/expense of that rep office such as salary, office costs etc. That would require lots of work since those invoices/receipts would be all in chinese, also that Chinese bank might not offer any easy to use statement export system etc.
Which option would you choose or do you have any other idea how to do it?
The rep office has its own address (virtual office), local bank account, 1 employee (the mentioned partner), accounting done by a local accountant. It is supposed to file annual statements but it cannot issue any invoices and make any sales. All sales must be done by the UK limited company directly.
Now, in terms of UK Limited company accounting, should I treat it as a separate entity, or should I book all the expenses of this rep office in my UK company's accounting.
Eg. Every month the UK company transfers 2000GBP to the rep office bank account, this covers the rep office expenses (1 employee salary, virtual office, other administrative fees). Then I have 2 options:
1. book this 2000GBP as general expenses in the UK limited company and forget it.
2. create a separate bank account in the accounting software, import the statement from the rep office bank account and book every single cost/expense of that rep office such as salary, office costs etc. That would require lots of work since those invoices/receipts would be all in chinese, also that Chinese bank might not offer any easy to use statement export system etc.
Which option would you choose or do you have any other idea how to do it?
