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Map of China

Land Area: 9,569,901 square kms

Coastline: 14,500 kms

Capital: Beijing

Population: 1344.130 millions

Climate:In China, a vast land spanning many degrees of latitude with complicated terrain, climate varies radically. China has a variety of temperature and rainfall zones, including continental monsoon areas. In winter most areas become cold and dry, in summer hot and rainy.

GDP: 7.298 trillion USD (2011)

Time Zone: GMT + 8:00

Literacy: The overall literacy rate is 92.2%, with 96% for males and 88.5% for females.

Environmental- Current Issues: Air pollution from reliance on coal produces acid rain; water shortages, particularly in the north; water pollution from untreated wastes; deforestation; estimated loss of one-fifth of agricultural land since 1949 to soil erosion and economic development; desertification; trade in endangered species.

Environment International Agreements:

  • Antarctic Treaty
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
  • Convention on Biological Diversity
  • Convention on Wetlands of International Importance Especially as Waterfowl Habitat (Ramsar)
  • Convention on the International Trade in Endangered Species of Wild Flora and Fauna (CITES)
  • Convention on the Prevention of Marine Pollution by Dumping Wastes and Other Matter (London Convention)
  • Convention on the Prohibition of Military or Any Other Hostile Use of Environmental Modification Techniques
  • International Convention for the Regulation of Whaling
  • International Tropical Timber Agreement, 1983
  • International Tropical Timber Agreement, 1994
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change
  • Montreal Protocol on Substances That Deplete the Ozone Layer
  • Protocol of 1978 Relating to the International Convention for the Prevention of Pollution From Ships, 1973 (MARPOL)
  • Protocol on Environmental Protection to the Antarctic Treaty
  • Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer Space, and Under Water
  • United Nations Convention on the Law of the Sea (LOS)
  • United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa
  • United Nations Framework Convention on Climate Change

International Airports: There are 191 Airports in China in all, out of which following are the international airports

  • Beijing Capital International Airport
  • Chongqing Jiangbei International Airport
  • Fenghuang International Airport
  • Hong Kong International Airport
  • Huanghua International Airport
  • Lishe International Airport
  • Lukou International Airport
  • Tianhe International Airport
  • Tianjin Binhai International Airport

Ports of Entry: Following are the ports of entry in China:

  • Beihai
  • Dalian
  • Dandong
  • Guangzhou
  • Haikou
  • Hankou
  • Huangpu
  • Jiujiang
  • Lianyungang
  • Nanjing
  • Ningbo
  • Qingdao
  • Qinhuangdao
  • Sanva
  • Shanghai
  • Shantou
  • Shenzhen
  • Tianjin
  • Weihai
  • Yangzhou
  • Yantai
  • Zhangjiang
  • Zhenjiang

Tax Rates in China

  • Financial Year :January 1 to December 31
  • Tax rates for Year 2012-13

Nature of Assessee Monthly Taxable Income (CNY) Rate of Tax
Individual
1-1500 3 %
1501-4500 10 %
4501-9000 20 %
9001-35000 25 %
35001-55000 30 %
55001-80000 350 %
80001 and above 45 %
Company Domestic & foreign companies 25%
Company Small companies in certain cases 20%

Procedure for Setting up a Company in China

The level of difficulty in setting up your company depends on your industry. The reason is that China encourages foreign investment in certain industries while discourages it in others.

There are several different registration classifications for foreign companies doing business in China. You will need to decide which one best suits your needs. The main classifications are Wholly Foreign Owned Enterprise (WFOE), Joint Venture (JV), Representative Office and Partnership Enterprise (PE).

A Wholly Foreign Owned Enterprise is a business that is 100% owned by a foreign company or companies. These are often established in Special Economic Zones. Only businesses in certain industry categories are allowed to set up as a WFOE. A WFOE requires a minimum capitalization, can generate income, pays tax in China and can repatriate profits. (Ref. 2).

A Joint Venture is a partnership between a foreign company and a local partner. A Joint Venture may be appropriate if WFOEs are not permitted in your industry classification.

A Representative Office is easier to set up than either a WFOE or JV. It costs less and does not require capitalization. However, Representative Offices may not engage in trade, receive fees for service, sign contracts or directly generate income. They are typically used for market research, promotion, and establishing or maintaining China business contacts.

A Partnership Enterprise is a new classification that came into effect March 1, 2010. It allows partnerships between foreign companies and individuals, and Chinese companies and individuals. (Ref. 2)

It typically takes 4 to 6 months to register a WFOE or JV, depending on scale and industry. (Ref. 3)

A number of government offices are involved in the process including the Ministry of Commerce or its subsidiary, the Local Industry and Commerce Administration Bureau, the State Taxation Bureau, the Local Taxation Bureau, the Foreign Administration Office of Police, the Bank, the Foreign Exchange Administration Bureau, the Public Security Bureau, and the Customs Office. (Ref. 3)

Basic Steps

Here is an outline of the basic steps to setting up a WFOE or JV in China. (Ref. 1) The process is simpler for Representative Offices.

1) Name Approval
2) Approval to Establish Company
3) Registration of Business License
4) Filing and Carving Seals
5) Enterprise Code Certification
6) Statistics Bureau Registration
7) Foreign Exchange Approval
8) Registration with City Tax Bureau
9) Setup of Bank Accounts
10) Customs Bureau Registration
11) Capital Verification
12) Business License Update
What MNRS Offers

MNRS offers credible services relating to setting up of business in China like

  • Registration of LLP, Company
  • Purchase of Shelf China Company
  • Nominee Director (Natural Person) China Resident / Non-Resident
  • Nominee Shareholders (Natural Person) China Resident / Non-Resident
  • Secretarial Services including changes in LLP, Company Structure
  • Bank Account opening and providing nominee bank signatory
  • Virtual office facility (Space for meetings, Fax, Internet, reception, file storage etc.) in various cities of China.
  • Dissolution of LLP, Company
  • Takeover or sale of existing business. (Liaison, due diligence, business valuation etc.)
 
Contact for this Service
CA Neeraj Kumar Agarwal
Partner
e-mail: Neeraj@mnrsindia.com
CS Shreyansh Jain
e-mail: Services@mnrsindia.com
Tel: +91 (11) 46502975
Telefax: +91(11) 29812975
Mob: 9313010417
     
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