The world has certainly shrunk since the start of the digital revolution and business has gone truly global, which is great for the digital entrepreneur. In this article, we offer useful information about setting up a business in China, which should help you gain a deeper understanding of how the process works.
Business Registration Options
When looking to set up a company in China, the following choices are available:
- Joint Venture Company – Join with a Chinese partner, with the Chinese partner holding at least 51% of the entity. This allows you to start operating immediately and you can directly hire Chinese employees.
- 100% Foreign-Owned Enterprise – If you want to enter the Chinese market for R&D, QC, or production purposes, you can register a business that is 100% owned by foreign entities. This allows you to import, export, and hire local staff with the help of a leading international law firm with offices in Beijing, you have all the support you need.
- Representative Office – This is ideal for foreign companies that wish to carry out initial market research or for local customer support. Conditions include you must use an agency to source local staff, you must have a registered office in China, while you are limited to a maximum of four foreign employees.
Tax Compliance Services
If you are concerned about tax compliance costs, the provider is transparent regarding fees, ensuring that your tax returns are always filed on time and their in-depth knowledge of the taxation system means that you do not more tax than you need. The law firm also offers strategic tax strategies to minimize payments and take full advantage of the incentives on offer.
Corporate Tax Compliance
- Monthly VAT returns – The client submits all relevant paperwork by an agreed date and the tax specialist files your monthly VAT returns.
- Quarterly corporate income tax – The specialist liaises with taxation authorities and prepares your quarterly CIT returns.
- Annual tax reconciliation – The provider arranges the annual tax inspection with numerous regulatory bodies and compiles an annual tax report and settlement.
Personal Income Tax Compliance
Of course, there is a personal income tax to consider; monthly returns are handled by your Chinese tax specialist, with the annual return filed on time. Expatriates have to pay tax just like Chinese citizens and your tax specialist will handle everything on your behalf, ensuring compliance at all times. Click for information on private jet rental.
Whatever your needs regarding setting up a business in China, make sure that you contact a leading international law firm that can assist you in many ways. Whether company formation, corporate governance or compliance, the legal experts are ready and willing to assist you in setting up a business in China.
You can arrange a free video call with an expert to discuss your immediate and long-term needs and take the first steps to becoming a commercial entity in China.
