Setting up a business in China refers to China business setup, China company registration and China corporate formation, etc. In order to successfully set up a business in China, it is crucial to proceed correctly as the regulations and rules require. One would be well-served to work with a Chinese consulting firm like Tannet. Such consulting firm will help navigate the complex Chinese business system, which may meet corporate goals and financial objectives while minimizing risk.
I. Forms of Legal Entity
Your presence in China may be in the form of a wholly owned foreign enterprise (WFOE), a contractual joint venture (CJV), an equity joint venture (EJV), a representative office (RO) or a local representation by a third party (local secretary/representation service companies).
II. Business Scope
China National Development and Reform Commission may prohibit, restrict, permit or encourage your business set-up based on your business categorization and scope. Hence it is critical to carefully define your business scope so as to be permitted or encouraged to set up the presence.
III. Registered Capital (or Share Capital)
The Chinese government requires certain minimum registered capital for various types of businesses. However, local Industry and Commerce Administrations may decide on your minimum registered capital based on their judgement of your business scope and operation scale. You need to confirm with local government agencies the minimum registered capital through local contacts before taking any other actions in case they require an amount far above your financial resources available for the China operation.
IV. Locations for Business Operation
China abandoned its preferential tax rate for investments of foreign companies from January 1st 2008. However, some areas still offer local preferential policies for foreign investors in terms of land leasing/procurement, staff recruitment and management, local tax etc. For more information about this, feel free to contact Tannet. We will answer for you wholeheartedly.
V. Types of Business Tax for Chinese Company
Your business in China will be subject to several different types of tax, including:
1. Corporate Income Tax: roughly 25%, but variable;
2. Turnover tax: tax on sales, between 3-5%;
3. Customs duties;
4. VAT: about 17%;
5. Individual income tax.
VI. Why Choose Tannet
1. With Chinese base in Shenzhen, international base in Hong Kong and Asian base in Malaysia, Tannet Group Limited grants you its expertise in the administrative procedures management, accounting and tax declarations from business setup to business followup and business speedup.
2. Tannet is your business hub in China. With One Platform and Four International Business Machines (namely, business incubator, business operator, management propeller and business accelerator) , we ensure you borderless, one-stop, cross-industry and tailor-made services.
3. Our services are flexible and adaptable to our clients’ needs and can be taken together or individually, as required by the situation and demand.
4. We have the best and most competitive solutions for every business size. Our rates are among the most affordable on the market.
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to firstname.lastname@example.org. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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