China

The state of China is located in East Asia.
The terrain of the People's Republic of China is very varied, with high mountains, broad plateaus, large depressions, deserts and vast plains. Most of the country is occupied by high mountains, highlands, deserts and semi-arid land. China's climate is very diverse, ranging from subtropical in the south to sharply continental in the north. On the south coast, the weather is determined by currents.
The soil and mountains of the People's Republic of China are rich in various fuels (oil, coal) and raw mineral resources (precious metals and metal ore deposits).
The Republic's economy ranks among the top in the world in terms of GDP this year.
At the start of the 21st century, China was listed among the top industrial superpowers in terms of manufacturing output.
Chinese is the state language. The official currency is the Chinese yuan.

China is a leader in the mining and processing of many minerals (coal, iron, manganese, lead-zinc, antimony and tungsten ores as well as timber) and a leader in large-scale extraction of other minerals (oil, gas, rare earth ores, uranium). It should be noted that the Republic is the world's largest producer of the vast majority of industrial products. Moreover, the state produces a large number of different types of transport. China produces more cars annually than the US and Japan combined.
The PRC pursues an active foreign policy aimed at international integration and cooperation. The Republic of China places great emphasis on cooperation with the World Trade Organisation. The Republic of China is not only a full member of this most important international trade organisation, but also actively participates in its activities and, in some matters, influences important WTO decisions. Among the international and regional economic organizations in which China participates, it is necessary to distinguish: the Asian Development Bank, APEC, the African Development Bank, the Bank for International Settlements, etc.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

From all the possible types of advantages that open up to the founders when incorporating a company, it is definitely worth noting:

  1. Ability to legally carry out independent business activities in the PRC.
  2. Financial, economic, political stability in China.
  3. No restrictions on founders. The founder of a 100% Wholly Foreign-Owned Enterprise (WFOE in China) can be any foreign individual or legal entity.
  4. It is not necessary to obtain an import or export licence for a Wholly Foreign-Owned Enterprise's own products.

Organisational and legal forms of companies

According to current Chinese law, it is possible to register your company in the following legal form:

A Wholly Foreign-Owned Enterprise is a limited liability company that is wholly owned by one or more foreign investor(s).

In the process of registering a Wholly Foreign-Owned Enterprise, the area or scope of business should be chosen. Any changes to the description of the activities that a Wholly Foreign-Owned Enterprise may engage in require new applications and approval.

The China Company Law establishes the minimum registered capital for a Wholly Foreign Enterprise in China:

  1. 100,000 yuan for a company with one shareholder;
  2. 30,000 yuan for a company with two or more shareholders.

The share capital depends on factors such as the type of business and where the company is registered.

Features of company incorporation

Based on the analysis of the current legislation regulating the activities of business entities, the following can be highlighted with regards to the specifics of the process of registering your business:

  1. The name must not coincide with the names of other firms already present in the register in China.
  2. The registration of companies in China is carried out through the State Administration for Industry and Commerce.
  3. It should be noted that in the company's articles of association in China, it is obligatory to indicate the scope of the company's activities on the territory of China.
  4. The share capital also depends on the field of activity and the form of organisation.

Taxes and fees

The state has the following features for levying taxes and fees

There are two main types of taxation in the PRC (China): VAT and corporate tax.

VAT is payable on a general or simplified basis. In the first case, the company must transfer 13% of its turnover to the state treasury; the size of its profits is irrelevant. The simplified regime is introduced in exceptional cases at a rate of 3%.

The standard corporate tax rate is from 25%. Small businesses (annual turnover of less than 3 million yuan) are taxed at 5% for annual taxable income of less than 1 million yuan, 10% for annual taxable income of between 1 million and 3 million yuan.

Any company in China must file an annual audit report with the relevant government authorities.

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