Holding company for investment in China

Potential jurisdictions for China holding companyHong KongSingaporeMacauNew ZealandMarshall Island
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Quick summary
Minimum paid up share capital?US$1US$1US$3,100US$1US$1
Total engagement period?2 months2 months2 months2 months2 months
How long set the company up?1 week1 week2 weeks1 week1 week
Our Client must travel?NoNoNoNoNo
How long to open bank account?7 weeks7 weeks7 weeks7 weeks7 weeks
Fast turnkey solution available?YesYesYesYesYes
Total year 1 engagement set up costs?Click this linkClick this linkClick this linkClick this linkClick this link
Total year 2 costs (including est. of accounting and tax fees)?Click this linkClick this linkClick this linkClick this linkClick this link
Incorporation requirements
A resident director or representative is required?NoYesNoYesNo
National shareholder required?NoNoNoNoNo
Minimum number of directors?11111
Resident director company secretary required?YesYesYesYesYes
Individual shareholder allowed?YesYesYesYesYes
Corporate shareholders allowed?YesYesYesYesYes
Corporate director(s) allowed?NoNoYesNoYes
Public register of shareholder and directors?YesYesYesYesNo
Tax and accounting
Special tax regime for holding companies?NoYesNoNoNo
Controlled Foreign Corporation (CFC) rules applicable?NoNoNoYesNo
Required % ownership?N/AN/AN/AN/AN/A
Corporate tax rate payable on foreign sourced income?0%0%12%28%0%
Withholding tax on dividends paid to non-residents individuals?0%0%0%0-30%0%
Withholding tax on dividends distributed to resident individuals?0%0%None33%0%
Withholding tax on interest paid to non-residents individuals?0%0%None33%0%
Capital gains tax payable on sale of subsidiary?NoneNoneNoneNoneNone
Annual return to be submitted?YesYesYesYesNo
Annual financial statements required?YesYesYesYesNo
Statutory audit always required?YesNoNoNoNo
Must always register for VAT/GST?NoNoNoNoNo
Link to double tax treaties?Click linkClick linkClick linkClick linkNone
Can do business and hire locals?YesYesYesYesYes
Blacklisted “tax haven” jurisdiction?NoNoNoNoYes
Corporate bank account considerations
Recommended corporate bank account?HSBCDBSBank of ChinaBank of ChinaInternational bank
Travel required to complete account opening?YesYesYesNoNo
Minimum recommended deposit (US$)?US$50,000US$50,000US$50,000US$20,000US$100,000
Multi-currency corporate bank account?YesYesYesYesYes
Quality of bank customer services?GoodGoodGoodGoodGood
Quality of online banking services?ExcellentExcellentExcellentExcellentGood
Corporate credit/debit cards available?YesYesYesYesYes
Resident bank signatory required?NoNoNoNoNo
FATCA reporting to the USA?In ForceIn ForceSignedIn ForceNone
Logistics considerations
Virtual office services available?YesYesYesYesYes
Allowed to make sales to foreign Clients?YesYesYesYesYes
Allowed to make sales to local customers?YesYesYesYesYes
Local sales subject to tax?YesYesYesYes
Can the entity hire local staff?YesYesYesYesYes
Can the entity hire expatriate staff?YesYesYesYesYes
How long to get work permit approved?2 months2 months2 months6 months2 months
Draft sales invoice for business setup?Click this linkClick this linkClick this linkClick this linkClick this link

Contact us

For additional information on our company registration services in China, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi