Before Investing in China
1. Know the Form of Investment in China
Non-legal-person Enterprise: legal establishment, has certain organizations and property, but do not have legal personality.
Form of Establishment: resident representative offices of foreign (region) enterprises, partnerships, etc..
Legal Person: means having the amount of funds the law stipulates, corporate name, articles of association, organization, address and other statutory requirements in line with the law, to independently bear civil liability, to register to obtain legal personality of social and economic organization approved by the authorities.
Form of Establishment: foreign-owned enterprises, joint ventures, Sino-foreign cooperative enterprises.
2. Registered Capital
All shareholders or promoters subscribed capital contributions.
The registered capital needs to be identified by the shareholders in accordance with their own business operations.
3. Taxes Required to Be Paid in the Business Operations
According to industry sectors and scales, 5% sales tax, 3% -17% value-added tax, corporate income tax of 20% -25%.
4. How to Return Profitable Part of the Enterprise to Investors?
Net income after tax of the enterprise audited by Taxation Bureau, then investors can apply for the distribution of shareholders profits.
5. How to Get a Visa to China?
Visa to China, according to the purpose to China, it can be divided into business and employment. There are single and multiple forms and the period from 1 month to 2 years. Family members can apply for the same visa with applicants to China.
6. How to Hire Chinese or Foreign Eemployees?
You can recruit Chinese or foreign employees after the completion of company registration. If hiring Chinese employees, the company needs to pay social security and legal reserves of housing acquisition for them.
If hiring foreign employees, the company needs to apply for legal employment procedures and the visa to China.If hiring foreign employees, the company needs to apply for legal employment procedures and the visa to China.
7. How to Know Your Chinese Partner’s Background?
Typically foreign joint venture or Chinese cooperation must be corporation within China. Thousands of miles away, how to know whether the Chinese partner is a legally established company?
We can provide you with background checks of your Chinese partner.