Holding company for investment in China in 2022

Potential jurisdictions for China holding company Hong Kong Singapore Macau New Zealand Marshall Island
Our ranking in order of preference 1 2 3 4 5
Quick summary
Minimum paid up share capital? US$1 US$1 US$3,100 US$1 US$1
Total engagement period? 2 months 2 months 2 months 2 months 2 months
How long set the company up? 1 week 1 week 2 weeks 1 week 1 week
Our Client must travel? No No No No No
How long to open bank account? 7 weeks 7 weeks 7 weeks 7 weeks 7 weeks
Fast turnkey solution available? Yes Yes Yes Yes Yes
Total year 1 engagement set up costs? Click this link Click this link Click this link Click this link Click this link
Total year 2 costs (including est. of accounting and tax fees)? Click this link Click this link Click this link Click this link Click this link
Incorporation requirements
A resident director or representative is required? No Yes No Yes No
National shareholder required? No No No No No
Minimum number of directors? 1 1 1 1 1
Resident director company secretary required? Yes Yes Yes Yes Yes
Individual shareholder allowed? Yes Yes Yes Yes Yes
Corporate shareholders allowed? Yes Yes Yes Yes Yes
Corporate director(s) allowed? No No Yes No Yes
Public register of shareholder and directors? Yes Yes Yes Yes No
Tax and accounting
Special tax regime for holding companies? No Yes No No No
Controlled Foreign Corporation (CFC) rules applicable? No No No Yes No
Required % ownership? N/A N/A N/A N/A N/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% None 33% 0%
Withholding tax on interest paid to non-residents individuals? 0% 0% None 33% 0%
Capital gains tax payable on sale of subsidiary? None None None None None
Annual return to be submitted? Yes Yes Yes Yes No
Annual financial statements required? Yes Yes Yes Yes No
Statutory audit always required? Yes No No No No
Must always register for VAT/GST? No No No No No
Link to double tax treaties? Click link Click link Click link Click link None
Can do business and hire locals? Yes Yes Yes Yes Yes
Blacklisted “tax haven” jurisdiction? No No No No Yes
Corporate bank account considerations
Recommended corporate bank account? HSBC DBS Bank of China Bank of China International bank
Travel required to complete account opening? Yes Yes Yes No No
Minimum recommended deposit (US$)? US$50,000 US$50,000 US$50,000 US$20,000 US$100,000
Multi-currency corporate bank account? Yes Yes Yes Yes Yes
Quality of bank customer services? Good Good Good Good Good
Quality of online banking services? Excellent Excellent Excellent Excellent Good
Corporate credit/debit cards available? Yes Yes Yes Yes Yes
Resident bank signatory required? No No No No No
FATCA reporting to the USA? In Force In Force Signed In Force None
Logistics considerations
Virtual office services available? Yes Yes Yes Yes Yes
Allowed to make sales to foreign Clients? Yes Yes Yes Yes Yes
Allowed to make sales to local customers? Yes Yes Yes Yes Yes
Local sales subject to tax? Yes Yes Yes Yes
Can the entity hire local staff? Yes Yes Yes Yes Yes
Can the entity hire expatriate staff? Yes Yes Yes Yes Yes
How long to get work permit approved? 2 months 2 months 2 months 6 months 2 months
Draft sales invoice for business setup? Click this link Click this link Click this link Click this link Click 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