Establishing A Corporation In China

International entrepreneurs choose to establish a corporation in China to tap opportunities in the one of the world's fastest-growing economies. The information below is a brief example of some of the issues investors who may wish to establish a corporation in China should me mindful of.
1.	100% foreign ownership is permitted for a Foreign-Invested Commercial Enterprise (FICE) and a Wholly-Owned Foreign Enterprise (WOFE).
2.	A China Representative Office (CRO) is an excellent opportunity for entrepreneurs planning to form a company in China to market the parent company and generate income in China.
3.	Several tax exemptions are available to establish a corporation in China, for example a manufacturing FICE has a low corporate tax rate of 10% in certain circumstances.
4.	China has signed double taxation treaties with many countries, offering tax exemptions to entrepreneurs planning to form a company in China.
5.	A China WOFE and FICE must pay a minimum 20% of the registered capital into a corporate bank account in the first 3 months of incorporation, the remaining 80% is to be paid within 2 years. Under China company law, the minimum share capital for a company with multiple shareholders is just RMB30,000 (US$5K) however, the real minimal capital requirements depend on what authorities believe to be required for each specific company project.
6.	A Representative Office in china cannot invoice clients in China directly, and can only conduct market research on behalf of its parent company.
7.	The process to establish a corporation in China remains difficult because of inefficient bureaucracy and complex application procedures. Furthermore, the Chinese government requires frequent, onerous and complicated accounting and tax reporting.
Contact Us
For additional information on establishing a corporation in China, email email@healyconsultants.com or call us at (+65) 6735 0120.
Back to China Company Formation.

Purchase the China chapter of Healy Consultants' Asia Business Set Up book, to order call +65 6735 0120 or e-mail email@healyconsultants.com