Form a Company in China

International entrepreneurs choose to form a company in China to tap opportunities in the one of the world's fastest-growing economies. The following information will help you determine whether to form a company in China to meet your international business objectives:
Advantages to form a company in China
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 ideal way for entrepreneurs planning to form a company in China to market the parent company and generate income in China. For more information, kindly visit our China Representative Office page.
3.	Tax exemptions are available to form a company in China, for example a manufacturing FICE has a low corporate tax rate of 10% in certain circumstances.
4.	China signed double taxation treaties with many countries, offering tax exemptions to entrepreneurs planning to form a company in China.
5.	After our clients form a company in China, Healy Consultants opens a corporate bank account with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank.
Disadvantages to form a company in China
1.	Several investors planning to form a company in China are concerned about the poor enforcement of intellectual property rights in the country. To highlight this, the 2010 Index of Economic Freedom by the US Heritage Foundation ranks China poorly at 140th out of 157 countries. China is also perceived as the 79th least corrupt country in the world, according to a 2009 Corruption Perceptions Index by Transparency International.
2.	Despite widespread legal reform, the process to form a company 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. Healy Consultants assists with all aspects of tax planning in China.
3.	A China WOFE and FICE must inject a minimum 20% of the paid up capital of RMB30,000 (US$4,400) into a corporate bank account prior to incorporation. The 80% balance is injected into the account in installments within two years of incorporation. Thus, to form a company in China, a substantial initial capital is required.
4.	There are geographical restrictions on where a WOFE can be set up.
5.	A Representative Office cannot invoice clients in China directly, and can only conduct market research on behalf of its parent company.
Healy Consultants Fees to form a company in China
WOFE - Our fee to form a company in China starts at US$9,250, although total engagement costs depend on the range of the professional services required.
FICE - Our fee to form a company in China starts at US$8,500, although total engagement costs depend on the range of the professional services required.
Representative Office - Our fee to form a company in China starts at US$6,250, although total engagement costs depend on the range of professional services required.
Joint Venture - Our fee to form a company in China starts at US$7,250, although total engagement costs depend on the range of professional services required.
Contact Us
For additional information on how to form a company in China, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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