Opening a Business in China

Opening a Business in China

A presentation brought to you by our law firm in China

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Reasons to open a business in China

China has one of the largest economies in the world and an important internal market.

The Chinese Government is taking steps towards encouraging foreign direct investments and for sustaining the economic development and progress of the country.

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Investment sectors in China

Some of the most important investment sectors in China are:

manufacturing, real estate, business services, trade, transport.

Foreign investments are also seen in agriculture, technical services or scientific research.

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Foreign investments in China

While some industries in China are more regulated than others, foreign investments are permitted in a large number of areas.

The Chinese government has implemented series of policies for foreign investments and an equal tax treatment is available for companies.

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Starting a business in China

Foreign investors in China need to choose an appropriate business form. The most commonly used is the foreign-invested enterprise.

These companies are partly or wholly established in China and they provide the foreign investor with a percentage of ownership.

Foreign businesses in China can form a joint venture with a local Chinese company.

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Company incorporation in China

Some of the most important forms of doing business in China for foreign investors are:

the wholly foreign owned enterprise; the equity joint venture; the contractual joint venture.

The minimum share capital and the requirements for incorporation depend on the chosen business form.

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The Chinese Wholly Foreign Owned Enterprise

The wholly foreign owned enterprise (WFOE) can be fully owned by one or more foreign investors.

Full company management is allowed for the foreign entrepreneur under this business form. The WFOE is the most commonly used type of company in China by foreign investors.

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Company taxation in China

Corporate taxation applies in China based on residence. A company is considered a tax resident if it is incorporated in China or if it is managed from this country.

A standard company income tax is applicable and special rates can be available for small companies.

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Foreign businesses in China

Foreign companies can open a branch in China. This is a company that will act as an extension of the mother company.

A representative office is another business option for those who do not want to open a WFOE, but this business form has a limited business scope.

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Legal assistance for doing business in China

The experts at our law firm in China can help you incorporate a company, submit all the documents for company incorporation and registration and represent you in front of Chinese authorities.

We can also help you hire employees and obtain special permits and licenses.

Thank you for your attention!

For more information please contact us at: (+44)203-287 0408 (for international clients)office@lawyerschina.net www.lawyerschina.net

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