China Company Formation
- Political stable , highly reputable country.
- Time of China company formation takes approximately 3 month.
- Personal presence not required
Tax Rates in China
Corporation Tax in China: Corporate income tax (“CIT”) – standard tax rate is 25%, but the tax rate could be reduced to 15% for qualified enterprises.
Income Tax in China: The tax on an individual’s income is progressive. An individual’s income is taxed progressively at 3% – 45%.
VAT Tax in China: The standard rate of VAT is 16%.
Currency: Chinese Yuan (CNY)
Time Zones: GMT+8
Dial Code: +86 10
Abbreviations: CN, CHN
What we can do for your Company in China
- We do all paperwork on forming the company in China
- Formation is completely remote
- Can act as Secretary or Treasury
- Provide nominee Directors/Shareholders
- Assist with opening a bank account
- Registration for Taxes, VAT & EORI
- Develop a website for your business
- Create a logo of your brand
- Provide with full company administration services
- Arrange a mailing address for your business
- Arrange a virtual office for your company
- Telephone answering service
- Book keeping, audit & reporting
- Preparing and submitting VAT return
- Dealing with local authority
- Trademark registration
China Company Formation. WFOE China Company Registration
Main Characteristics and the basic rules of Company registration in China.
Are you harboring any plan for business expansion to a new country but feel unsure about the right choice? If this is the case, you may very well opt for China. The Chinese market is what most US and European MNCs and giant companies cannot afford to overlook. It is the world’s second-largest consumer market and the portion of affluent consumers is too hard to ignore for any company. While the logistics and culture related factors need any business expanding operation in market to do proper research and analysis- these should not be deterrents for your offshore China Company Formation plan.
The Chinese economy underwent a major change in the 1990s and doors were opened by the government to encourage foreign investment. Still the impact of long communist rule is felt-in everything-including business operations and interactions. But that has not deterred foreign investors from China Company Formation as the country still offers relatively cheap labor and skilled workforce.
While the social factors matter, you have to look at the sheer economic growth and trends in China to understand why it can be a good choice for business expansion. The country leads most other nations in Asia and outside the continent in trading and manufacturing output, as it is. The Chinese GDP crossed past $10 trillion in 2014, which was a record high. In fact, the country’s GDP growth has bypassed 10 per cent in last three decades. The average spending power of Chinese residents is rising with time. The middle class in China usually regard brands and products from the EU and the USA in high esteem.
Owing to the growing percentage of middle-class consumers in China, it is easier for offshore companies to start operations in the country, compared to many other countries in Asia. The China Australia Free Trade Agreement is a major step in letting Australian companies expanding operations in the country. There are prospects of companies offering services in niches like tourism, food, media, hospitality insurance and more to get into China.
Manufacturing products in China should not be a problem and lack of resource is not going to be a deterrent. With time, Chinese people have understood the importance of learning English and so communication barrier is not as steep as it used to be even a decade back.
No matter if your company sells fast food or car insurance, China Company Formation will require clear understanding of taxation and legal norms. The BRIS group is the right partner to make your business expansion hassle free. Call us for details today for your China Company Formation needs.
|China Company Formation||Financial Advantages|
|Taxation:||Yes, standard tax rate is 25%, but the tax rate could be reduced to 15% for qualified enterprises which are engaged in industries encouraged by the China government|
|Double Taxation Treaty Access:||Yes, China has tax treaties with other countries to foster cooperation between China and other international tax authorities.|
|China Tax Information Exchange Agreements:||Yes, China signed Exchange Agreements|
|Account Filing Requirements:||Yes accounting or reporting requirements|
|Annual Return Filing Requirements:||Yes annual return/ reporting requirements|
|Audit Requirements:||Yes audit required.|
|China Company Formation||Registration Requirements|
|Share Capital:||Minimum Registered Capital depends on nature of business.|
|Classes of Share Available for China company formation:||Registered Shares|
|Bearer Shares:||Not Allowed|
|Registered Office Required:||Yes, required and must be maintained in China.|
|Shareholders:||Minimum number is one|
|Directors:||Minimum number is one. Can be any nationality and need not be resident in China. Corporate directors are not allowed.|
|Your Company language:||Chinese|
|Name of your Company must be ended:||Limited”, “Ltd”, “Company”, “Corporation”.|
|Documents required for China company formation:||A certified copy of your passport or ID and proof of your residential address dated less than 3 months.|
|China Company Formation||Restrictions|
|For China company formation you cannot use words in your company names without justification:||“Bank”, “Trustee Company”, “Assurance”, “Building Society”, ”Trust Company”, “Royal” etc.|
|Restrictions on Trading:||None|
|Not permitted without a licence:||Fund management, insurance, Banking, reinsurance, assurance, trust management, collective investment schemes, trusteeship business provision.|
|China Company Formation||Confidentiality and Security|
|Publicly Accessible Records:||Yes public register of company officers (Directors, Shareholders, Secretary)|
|Nominee Shareholders and Nominee Directors:||Yes, Allowed|
|Disclosure of Beneficial Ownership to Authorities:||Yes|
|Meetings of Directors and Shareholders to be held:||Anywhere|
|Stability:||Political Stability is good, highly reputable country.|
|Region:||4 Municipalities. Beijing. Chongqing. Shanghai. Tianjin. 23 Provinces. Anhui. Fujian. Gansu. Guangdong. Guizhou. Hainan. Hebei. Heilongjiang. Henan. Hubei. Hunan. Jiangsu. Jiangxi. … 5 Autonomous Regions. Guangxi. Inner Mongolia. Ningxia. Tibet. Xinjiang. 2 Special Administrative Regions (SAR) Hong Kong. Macao (Macau)|
|Political System:||Single-party state|
|Government:||Communist state, Socialist state Republic|
|Governing corporate legislation:||Companies Law of the People’s Republic of China 2005.|
|Type of Law:||Civil|
|Currency:||Chinese Yuan (CNY)|
|Exchange Control:||Yes under Provisional Regulations for Exchange Control of the PRC of 1981, as modified in 1985.|
|Language of Legislation and Corporate Documents:||Mandarin.|
- Director and one shareholder who can be non-citizens of China and also, they do not have to reside in China.
- Minimum capital can be as low as US$15,000.
- China as the largest populated country in the world – the second largest world economy.
- Manufacturing companies benefit in China from low labour costs.
- Companies located in China benefit from low cost and can enjoy of support from a big service industry that has numerous financial institutions and shipping agents;
- Lots of local industrial development zones.
- Fifty four Export processing zones (EPZs) offer a reduced rate of corporation tax and subsidised custom duties;
- Subsidiary in China will be able to make use of almost a hundred double taxation avoidance treaties to reduce the withhold tax on dividends remitted overseas.
- DTAAs have been signed by China with many world leading markets.
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.