Tax services in China work clearly, and they cannot be deceived. It is useless to bribe state officials since the Chinese can face the death penalty for this.
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OPENING A COMPANY IN CHINA:
GUIDE FOR EMERGENT ENTREPRENEURS
More and more compatriots are thinking about opening a business in China. This gives big profits with relatively small initial investments. The authorities of the Celestial Empire are sympathetic to foreign businessmen and support their endeavours while respecting the rule of law.
PROPERTY TYPE
TO BECOME THE OWNER AND CO-OWNER OF THE COMPANY IN THE CHINESE PEOPLE'S REPUBLIC IS POSSIBLE VIA ONE OF THE WAYS:
PRIVATE OWNERSHIP
If the Russian citizen owns more than ¼ of the company's value it gives him/her the right to obtain the status of FIE. That is, it will be called an enterprise with foreign capital.
1
FULL OWNERSHIP
If the ownership is full, then WFOE is added to the name of the company, which means the enterprise with 100% foreign capital.
2
JOINT VENTURE
This is a joint venture. Participation in the company's affairs is on an equal basis with partners from China.
3
BUSINESS AREAS
THE CHINESE AUTHORITIES ARE SYMPATHETIC TO ENTREPRENEURS WHO EMPLOY THE LOCAL POPULATION AND PAY TAXES. MAIN DIRECTIONS:
SALE OF GOODS FROM CHINA, SALE OF TOYS, SALE OF SPORTS EQUIPMENT
1
PRODUCTION OF HOUSEHOLD APPLIANCES
2
SEWING SHOES
3
PRODUCTION OF CONSTRUCTION PRODUCTS FROM SECONDARY RESOURCES
4
PRODUCTION OF SIMPLEST ELECTRONICS
5
SEWING CLOTHES
6
PHARMACEUTICAL UNDERTAKINGS OF FOREIGNERS ARE NOT SUPPORTED IN CHINA. IT IS BELIEVED THAT ONLY LOCAL EXPERTS AND SPECIALISTS SHOULD DO THIS.
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INITIAL CAPITALThe amount of about $15,000–20,000 will be enough to launch a business in China. This money will be needed for the rent of premises and payment of duties. This will include the funds to pay for personnel for the first time. But the permission to launch a business in the Celestial Empire is officially given in the presence of a $150,000 on the businessman's account.
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DOCUMENTSLIST OF DOCUMENTS:
The list of necessary documents is issued by the state authorities of the country dealing with trade matters. First, one needs to register the application and open bank accounts.
- The lease agreement with property securities. The rent of the premises must be made before the registration. The cost of the office is about $200 per square meter, not including utility bills.
- Account statement from the bank of the Chinese People's Republic.
- Passport and copy.
- Photos of the business owner.
- Order of director appointment.
THE PACKAGE OF DOCUMENTS IS CHECKED BY THE DEPARTMENT DEALING WITH CURRENCY CONTROL AND THE TAX INSPECTORATE THAT ASSIGNS THE COMPANY A SPECIAL CODE. A SEAL IS ORDERED ANDA PERMIT IS OBTAINED FOR HIRING PERSONNEL. THE RECRUITMENT AGENCY CAN FIRST HELP IN HIRING. UPON OBTAINING THE STATUS OF THE LEGAL ENTITY, THE COMPANY HAS THE RIGHT TO RECRUIT EMPLOYEES.
THE UNIQUE NAME OF THE COMPANY MUST BE PRESENTED IN SEVERAL VARIANTS, FROM WHICH ONE WILL BE CHOSEN. THE COMPANY IS REGISTERED ON THE TERRITORY OF CHINA.
TAXES
BUSINESSMEN IN THE CELESTIAL EMPIRE WILL HAVE TO PAY THE FOLLOWING TAXES:
VAT
The simplified form will be 4%.
1
INCOME TAX
Income tax is paid in the amount of 25–33%.
2
SOCIAL CHARGES
Social charges for employees are about 44%.
3
IF THE RUSSIAN CITIZEN WORKS IN CHINA FOR 5 YEARS, HE/SHE WILL BE RETURNED 40% OF THE INCOME TAX INVESTED IN THE CHINESE ECONOMY. HIGH-TECH ENTERPRISES CAN BE EXEMPT FROM SUBSIDIZING PERSONNEL, RENT FOR THEM CAN BE REDUCED, THEIR TARIFFS ON UTILITIES AND TRANSPORTATION CAN BE DECREASED. CREDIT RATES CAN BE REDUCED FOR SUCCESSFUL FIRMS IF THIS IS APPROVED BY THE BANK OF CHINA.
TIPS FOR EMERGENT ENTREPRENEURS
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Prior to opening the company, one should visit thematic exhibitions that are regularly held in China. There one can make useful acquaintances with future partners.
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To get it right from the beginning, one needs to hire a good interpreter, better the Chinese one. He/she will help with paperwork and household matters.
To quickly launch a business in China and save time and money, it is better to contact 4YOU GLOBAL. We have more than 8 years of experience in business support in the Celestial Empire, we hire only qualified interpreters with legal and economic education.
ADDRESSING 4YOU GLOBAL, THE BUSINESSMAN WILL SHORTLY RECEIVE THE BUSINESS THAT FULLY MEETS THE LEGISLATION OF THE CHINESE MARKET.
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