Overview of Foreign-owned Enterprises

After China becomes the member of World Trade Organization (WTO), more  Foreign-owned Enterprises in the area of business service, consulting, software development or trading companies are established in China.

Our Services

  • Assist with the registration process and Chinese notary
  • Provide Address for Registration
  • Accounting and Tax Returns

Advantages of Foreign-owned Enterprises

  • Be able to do business formally without having to have as many limitations as your office.
  • Users can open RMB invoices, and RMB as revenue.
  • Renminbi profit is converted into USD to remit to overseas parent company.
  • Employ employees directly in China.

Business Scope of Foreign-owned Enterprises

There is a strict limitation on carrying business in China. Foreign-owned Enterprises only allowed to carry business within its allowed business scope which is stated on its business certificate.

Requirements for setting up a foreign company

  • An actual registered address
  • At least one shareholder. Shareholders without citizenship restrictions
  • At least one director. If there is only one director, who will serve as legal representative
  • At least 1 supervisor, who cannot concurrently as a director or legal representative of a Chinese company

Registered capital requirements:

  • Trade: RMB500,000 (wholesale), RMB300,000 (retail)
  • International Freight Forwarders: RMB5,000,000 (Sea), RMB3,000,000 (Air), RMB2,000,000 (Land)
  • Software Development, Consulting, Design: RMB100,000

Information Required

  • Identity card of shareholders, directors and supervisors (2 copies), subject to Chinese notary
  • Shareholder’s bank credit certificate (additional Chinese translation required)
  • Original Office Lease

If the shareholder is another limited company, the following Chinese notarization (2 copies) is required:

  • Certificate of Incorporation
  • Last year’s business registration
  • Annual Return of the Latest Year

Annual filing hours

  • Accounting and tax filing: 15th of each month
  • Annual Tax Review: 1 January to 31 May
  • Annual Auditor’s Report: 1 January to 30 June
  • Degree annual inspection: 1 January to 30 June

Tax rate

Enterprise Income Tax 
Tax rate is 25%

VAT
Annual sales of more than 80 million: 17%
Annual sales of 800,000 or less: 3%

Time Required for the Application

Around 30 working days.

3