China provide you the robust and ideal business registration services.
China company formation assists global entrepreneurs legitimately conduct business in one of the world’s fastest-growing economies. The following information will help you determine whether China company formationis the optimum corporate structure to fulfill international business objectives:
Advantages of China Company Formation
China company formation is popular with foreign investors looking for a foothold in the world's third-largest economy (after the EU and the USA), based on nominal GDP data from the IMF. China is the recipient of more foreign direct investment (FDI) than other nations in Asia. Furthermore, China offers a vast labour pool that, in the major cities, increasingly comprises sophisticated graduates.
A China Representative Office is an ideal way for entrepreneurs choosing China company formation to market a foreign parent company’s services in China.
A foreign-owned company can obtain tax exemptions if based in a Free Trade Zone or Export Processing Zone. Furthermore, to encourage foreign investment some provinces offer preferential corporate tax rates. The most popular locations for foreign investors are Beijing, Guangzhou, Shanghai and Shenzhen. Other notable options include Suzhou, Qingdao, Ningbo and Dailan.
A Chinese company accesses double taxation treaties with 95 countries including Australia, France,Germany, India, Singapore, the UK and the US to support China company formation. There are more tax agreements in the process.
100% foreign ownership is permitted for a Chinese company. For more information, visit CSBC ASIA 'Wholly-Owned Foreign Enterprise (WOFE) page.
In its 2010 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks China as the world’s 18th most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure. Furthermore, in the World Economic Forum's Global Competitiveness Report 2010-2011, China is ranked at a positive 27th place.
Following China company formation, CSBC ASIA can open a corporate bank account with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank. For more information, visit ourChina corporate bank account page.
Disadvantages of China Company Formation
All Chinese companies suffer a fixed 25% tax on global profits. However, tax deductions are available for foreign-owned companies.
Although 100% foreign ownership is permitted, the company activities allowed and minimum start up capital required varies depending on geographical region. The activities of a foreign-owned entity are restricted to those on its business license, issued by the provincial government. Because of this, it is critical for a foreign investor to carefully prepare incorporation documents. CSBC ASIA handles all pre-incorporation documentation for clients to ensure the scope of business license matches the planned activities of the company. Examples of the restrictions placed on Chinese companies include the inability of a Representative Office to make sales and invoice clients in China.
Both a foreign-owned entity and a Representative Office must be located in a prime office premises pre-approved by local government and municipal authorities. Consequently, office premises eligible for foreign-invested companies are expensive to rent.
China company formation takes up to 6 months due to inefficient bureaucracy and complex licensing procedures involving local and provincial authorities. To highlight this, China ranks poorly as the world’s 79th easiest placeto do business in the 2011 Doing Business Survey by the World Bank, which takes into account China company set up procedures, time, cost and minimum capital required to start a business. China also negatively ranks as the world's 135th freest economy in the Heritage Organisation’s 2011 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
China's legal system has a poor international reputation, for example the enforcement of intellectual property rights. As evidence of this, China ranks as the world's 78th-least corrupt country in the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
After China company formation, all entities are required to submit financial statements and tax returns to federal and provincial authorities. CSBC ASIA will assist our clients efficiently and effectively to complete this annual statutory obligation.