Established Chinese company

China is situated in the eastern Asia. Its area is 9.60 millions square kilometers with population of 140 millions people and official language is simply Chinese. Since 1980, the economic reform greatly increases the international status of China, and now China becomes a good place to invest.

Shenzhen is a sub-provincial city of Guangdong province in southern China, located at the border with the Hong Kong Special Administrative Region. Its area is 2,050 square kilometers with over 12 millions population. In the 1980s, Special Economic Zone was established in Shenzhen as a trial of economic reform.

The development of economic in Shenzhen is then full of vitality and it is a centre of foreign investment and has been one of the fastest growing cities in the world. In the past two decades, outsiders have invested more than RMB 30 billion in Shenzhen for building factories and forming joint ventures.

Shanghai is one of the municipalities directly under the jurisdiction of the Central Government. It is situated at the Chang Jiang Delta, the southern coast of Chang Jiang River. Its area is about 6340 square kilometers with 18 millions populations. Shanghai is one of the fast growing cities in China.

It is believed that Shanghai is the commercial and financial center of China. Shanghai is the third busiest ports in the world and smaller than Hong Kong and Singapore only.

Beijing is the capital of China, one of the four municipalities in China. Its area is about 168,000 square kilometers with 15 millions populations.

Beijing is a major transportation hub, with dozens of railways, roads and expressways passing through the city. It is also the focal point of many international flights to China. Beijing is recognized as the political, educational, and cultural center of the People’s Republic of China.

It is necessary to obtain Land Registration Certificate or Rental Contract, together with Capital Verification Report, notarization and other supporting document and submit to the State Administration for Industry & Commerce. Normally it takes about four to eight weeks to complete the registration.

According to the People’s Republic of China Foreign Enterprises Law and its related law, wholly owned by foreign enterprises refer to enterprises setting up in China and they are wholly owned by foreign investors by (including investors from Hong Kong, Macau and Taiwan).

Foreign enterprises can benefit from the special policy, for example, the discount in taxation and purchasing land. However, in the may of 2007, the taxation systems in any places other then Specials Economic Zones have been combined into one single system. This means that both local and foreign enterprises having the same tax rate, 25%.

Foreign enterprises are required to pay the taxes for the profits which are gain from China only. Foreign enterprises are required to pay the taxes for the total sales amount (dividend, interest, rental, fee from chartered right or any income) which is gain from China if the foreign enterprises did not set up representative office or subsidiary.

There must be at least one Chinese citizen who is a legal person in representative offices.

Representative offices mainly conduct market researching, trading communicating and investment counseling but not participating in production activities. Invoice is not allowed to be issued by the representative offices. It has no independent properties, is not a economical individual nor a qualified legal person. It cannot benefit from the civil rights and related responsibility.

The name of representative office is usually according to the registered name in the place of registration. For example, a company named “Hong Kong Company Limited” in Hong Kong will be named as “Hong Kong Company Limited Shenzhen Representative Office” after registration in Shenzhen. However, approval is still required by the State of Administration for Industry & Commerce. The name must contain Chinese characters and it should not conflict with any existing name.

Limited by the law, representative offices cannot hire staff member directly but through local labor organization. The salary and insurance for the staff members should be paid through the organization too. At the end of December every year, detailed lists of expenses, certify by auditors, should be submitted and pay taxes of 8%-16% accordingly.

At 11th December, 2001, China became a member of World Trade Organization and opened the market gradually. China promised that she would create a more transparent trading environment. After that, Chinese products which entering international market would have greater security. At the same time, foreign goods and products will have greater chance to develop Chinese market.

Recently, China is improving the investment environment by enhancing law system and allowing fair competition in the markets. Also, the power of decision-making in operating business is ensured in order to protect foreign investors.

The treatment for the foreign investors is becoming the same as Chinese citizens by adjusting the tariff, tax rates and charge standard.

Since 1990s, the industrial in Shanghai started to boost and consisted mainly the heavy industries, petrochemical industries, mechanical and electrical industries. Others include aerospace industries and motor vehicles industries. However, due to the continuous increase of the cost of rent and labor power, together with the change of the government policies in industries, most high pollution and labor intensive industries had moved to the rural areas or even shut down. The industrial structure in Shanghai is greatly improved and it reinforces its core competitiveness.

Beijing is one of the most important financial and commercial centers in China. The headquarters of the four major country-owned banks and some other international insurance companies are situated at there. Besides, many inspecting and monitoring organizations are situated at there too. Due to the high growing speed of the economy of China, more international are interested to set up regional headquarters n Beijing.

Incorporation fee in Shenzhen is according to the business nature and location.

Incorporation fee in Shanghai is according to the business nature and location.

Incorporation fee in Beijing is according to the business nature and location.