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Overview

Hong Kong became a Special Administrative Region of the People's Republic of China since July 1, 1997. SAR Basic Law guarantees Hong Kong's capitalist economic system unchanged for 50 years after the handover. Hong Kong will continue to enjoy a high degree of autonomy except defense and foreign affairs. The official languages are English and Chinese.

Although the population of Hong Kong is just over six million, finance and banking services sector remained relatively strong in the international trade. Hong Kong is the world’s ninth-largest trading economy and the third largest financial center. More than 3,200 multinational corporations set up regional headquarters or offices in Hong Kong. Hong Kong is also a gateway into China.

Legal and Tax

Hong Kong company law is based on English common law. Hong Kong is a low tax jurisdiction. Profits, salaries and property tax rates are in the 16% -17.5%, and there also has the various types of stamp duty, equity tax. In addition, there is no capital gains tax, dividend tax or withholding tax.

Only the profits which generated in Hong Kong need to pay tax. The profits which generated outside Hong Kong are not subject to tax. The corporate income tax rate is 17.5%. In addition to the amount of tax exemption, individuals must pay income tax, the income tax rate is incremented by the amount, and the highest rate is 16%.

Rent from the land and buildings in Hong Kong have to pay property tax. In the stock transfer of the company in Hong Kong, the transferor and the transferee must pay stamp duty, the tax rate of 0.1% of the stock exchange price or fair market, subject to the higher of the two prices. The transfer of land and buildings in the territory must prevail in accordance with the higher price of the transaction price or the fair market value as the payment of stamp duty, a maximum rate of 3.75%.

Within the Group owns 90% of the ordinary shares of the parent company and its subsidiaries in the transfer transactions are not required to pay any stamp duty. Hong Kong company must pay 0.1% of the par value equity tax payable tax increase the registered share capital or issue new shares at a premium, a ceiling of 30,000 Hong Kong dollars for each case.

The Company Processing Time

New established company: about 15 working days;
Buying a shelf company: 7 working days.

For more details, please contact J & K.

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Overview

British Virgin Islands (BRITISH VIRGIN ISLANDS-BVI) is located between the Atlantic Ocean and Caribbean Sea, with an area of 153 square kilometers. It located in the northern end of the Leeward Islands, 100 km away from the east coast of Puerto Rico, and near the Virgin islands. The British Virgin Islands is one of the members of the Commonwealth, and the official language is English.
British Virgin Islands rely mainly on tourism and financial services. In 1984, the Government promulgated the International Business Companies Act. This legislation has proved to be immensely popular in the international context, the BVI currently become one of the world's most famous offshore financial center. In the past nearly 20 years, more than 400,000 offshore companies registered in there. BVI is one of the financial centers in the Caribbean.

Legal and Tax

The legal system follows the British common law system (but contains some of the provisions of the laws of the State of Delaware of United States in the International Business Companies Act). Companies Act milestone in the development of the International Business Companies Act, enacted in 1984, and a company registered under the Act are entitled to duty-free concessions. Tax Exemptions include capital gains tax, stamp duty and any form of tax-free taxable. In the BVI, the foreign exchange is unregulated.

The Company Processing Time

New established company: about 15 working days, containing Chinese name companies plus 2-3 working days;
Buying a shelf company: 2-5 working days.

For more details, please contact J & K.

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Chinese attraction increases the number of foreigners to China. According to statistics, the number of foreigners exiting from and entering into China is up to 98 million people in 2019. Foreigners working in Shanghai have been over 210,000 persons, and this number is increasing year by year. How many kinds of foreigner’s visa in China? What's the differences between them?

Tourism Visa (L)

It’s very common visa type. Generally speaking, foreigners holding L visa could stay maximum 30 days after entering into China. Other L visa may last 15 days, 60 days or longer time, according to applicant's different situations.

Business Visa (M)

It is applicable to foreigners for visiting, giving lectures, business trip, technology communication, culture activities or short-time-training. We could apply for once entry, twice entries or multiple entries within 1 month, 3 months, 6 months and 1 year etc..

Residence Permit

It is applicable to foreigners for working and residence. We could apply for 1 year to 5 years multiple entries residence permit for those who works and stays in China no matter foreign employees or their family members.

When you are busy and uncertain about China visa process, J & K's professional visa service will be your best choice.

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China's individual income tax rates from 3% to 45%, which is in the upper level of the world. Due to high tax costs and complex rules, you do have the demand and opportunity to save your individual income tax in a legal and proper way. An anticipatory and skillful tax plan is very helpful.

It is not always that high earners pay the high marginal rates of taxes on income. Even for those persons who stay in China with the same purpose, that is, with the same kind of visa, different tax treatments may occur due to different visas they hold.

You can save tax by controlling the days spent in China. Effective controls of resident days will help avoid huge tax burden.

Which kinds of income are taxable? Let our professional consultant to rearrange the nature of your income to make full use of the exempted categories.

We'd like to share with our experience and guide you technical tips. Please contact us and let's discuss how to save your tax in a legal way.

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As China races into the world economy, many foreign-owned enterprises are looking forward to establishing themselves here to become part of the fastest growing business market in the world. The business model you can use in China will be determined by these WTO guidelines and time frame. The options range from a representative office, to a joint venture company, to a wholly-foreign owned enterprise (WOFE).

Representative Office works well for companies that only want to sell a given product here in China that is invoiced from overseas. But the market becomes limited if the customers are invoiced and must pay through an overseas transaction.

Joint Venture Company structures have allowed foreign companies to enter the Chinese market early in the process of Chinese economy's growth. The Joint Venture Company is faced with the risks of selecting a great local partner. The key thing is to make sure you have done your due diligence on the partner, and to have a strong contract and articles to fall back on if something goes wrong.

The fastest growing type of business established in China is the WOFE- solely because of the ability to control your own destiny and the opening of the Chinese markets to foreign firms through business accession. You must be careful in deciding exactly how the business will be set up, what tax implications you may face and what possible steps need to be taken to repatriate profits.

In the end, it doesn't matter how it's structured and what due diligence you need to perform in order to maximize your efforts. Look for experts in the field to avoid to lost time, and more importantly lost money.

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