The “foreign-funded enterprises” refers to people from abroad invest and establish company in China, include three types as Sino-foreign joint ventures, Sino-foreign cooperative enterprises and wholly foreign-owned enterprises. Foreign-funded enterprises engaged in business activities who are required to abide by China’s relevant laws and regulations is to implement the independent accounting, self-financing economic entities.
The establishment of foreign-funded enterprises in China, foreign investors should submit the documents include:
(1) Signed by the legal representative for “Registration Application of Foreign Investment Companies Formation”;
(2) The approval documents of approving authority;
(3) The company’s charter approved by approval authority;
(4) “Pre-approval Notice for Enterprise Name”;
(5) Subject qualification certificate of investor or identity of natural persons;
(6) Appointment and a copy of proof of identity of legal representative, directors, supervisors and managers;
(7) The capital verification certificate issued by a lawfully capital verification institution; applicable to the financial, securities, insurance and fund management companies, and established pay all or part of the registered capital of the company.
(8) Non-monetary property as the first time funds of the investor, the author has handled the documents of the property transfer procedures. Funded by the investors of equity, should be submitted to the equity-financed investment signed by the equity of subscription undertaking equity company business license (must be stamped with the seal of the equity firm);
(9) Residence documents;
(10) Pre-approval documents or certificates; applicable to the business scope of laws, administrative regulations and the State Council decided the project company regulations must be submitted for approval prior to registration.
(11) Legal documents power of attorney;
(12) Other relevant documents.
In addition to the above matters, foreign investors set up foreign-funded enterprises in China, whose subject qualification certificate or proof of identity must be notified by its competent authorities and then evacuate to the Chinese Embassy (consulate) in this country for certification. If the foreign country has no diplomatic relations with China, shall be subject to Chinese diplomatic relations with the Chinese Embassy (consulate) in the third country, and then certificate by the Chinese Embassy (consulate) in this third country. Instruments issued by the overseas territories of some countries, should be completed notarized in the possessions and then by its foreign agencies certified by the Chinese Embassy (consulate) in the country.
The main qualification certificate or identity certificate of Hong Kong, Macao and Taiwan investor shall be in accordance with the special provisions or agreements shall provide a local notary public documents. Natural person investors of foreign country, Hong Kong, Macao and Taiwan who have entered the territory of China, may submit a photocopy of identity card and a valid entry visa for registration, and identical with the original, without the need to submit a notarized certification documents.
There are total of 15 kinds of taxes applicable to foreign-invested enterprises in China’s current tax system. The main provisions of the tax benefits of foreign-invested enterprises in China are in Enterprises with Foreign Investment and Foreign Enterprise Income Tax Act and its Implementation Details for the sectors and projects to encourage foreign investment, the provincial, autonomous regions and municipalities can decide to be exempted or reduced local income tax according to actual situation. In accordance with the law, where foreign-invested enterprises and foreign enterprises established in China engaged in production, business operations, and places to obtain, in accordance with the proportional tax levied at the rate of 30%. In addition, according to the taxable income rate of 3% assess local income tax, the overall burden rate of 33% as the two together.
China’s current legal provisions of the tax benefits of foreign-invested enterprises mainly cover the regional investment incentives, encourage the establishment of productive investment enterprises preferential, preferential tax refund on reinvestment, encourage the establishment of export enterprises and advanced technology enterprises preferential withholding tax concessions and other aspects of the concessions.
Compared to the local tax, international tax is more complex because of some difficulty in operating and familiarity degree. The process of foreign-funded enterprises establishment and operation in China can be selected credibility, professional high degree of accounting firms, management consulting and other institutions for their services. Such intermediaries are familiar with relevant laws and policies to help enterprises to reduce operational risks, and to avoid unnecessary disputes. CONPAK CPA can help you to set up company in China(http://www.conpak.com/China-Company-registration.html) easily and successfully.
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