1.
How can a foreign invested enterprise establish its branches? (view full answer)
The Foreign Invested Enterprises should apply to the original Registration Administration Bureau for Industry and Commerce for the establishment of branches in China in accordance to the relevant regulations. In addition, all regi...
The Foreign Invested Enterprises should apply to the original Registration Administration Bureau for Industry and Commerce for the establishment of branches in China in accordance to the relevant regulations. In addition, all registered capital has to be paid before it can establish any operative branches.
2.
Whether all of the registered capital must be equity (shares), or can a part be loan capital? (view full answer)
During the setup procedure, all money has to be in the form of full shares, and by cash, no loans can be accepted. However, you can borrow money from HK or from oversea parent company before company setup, and then setup a long-te...
During the setup procedure, all money has to be in the form of full shares, and by cash, no loans can be accepted. However, you can borrow money from HK or from oversea parent company before company setup, and then setup a long-term loan agreement to return those money back to investor.The maximum of the loan you can borrow is the gap between investment amount and registered capital.
3.
Does registered capital need to be replenished for each year end accounts? (view full answer)
No, registered capital is for your operational usage, no need to be replenished.
No, registered capital is for your operational usage, no need to be replenished.
4.
We have office in HK, and now want to setup China trading WFOE. We want to know, how would profits be proportioned between HK and China if HK said to be developing sales and providing management (view full answer)
If HK develops sales and provide management to China company, the management of the company have the right to decide a reasonable profits proportioned agreement or a management service contract, which should be approved by China l...
If HK develops sales and provide management to China company, the management of the company have the right to decide a reasonable profits proportioned agreement or a management service contract, which should be approved by China local tax bureau. If you want these kind of management service or proportioned part to HK can be deducted for your corporate income tax in China. A good & deeper group tax planning will help you to have an overall control of the balanced profit and tax, since HK can enjoy good rated than mainland.
5.
Is there any differences who the shareholders of the company is, I can use myself as individual investor, or my US, HK company, whether they are the same? (view full answer)
There will be no difference for the new company's future operation. Foreign individual person, HK or oversea enterprise can all be investor of FIE in China. The only difference is in the registration process. There will be less ma...
There will be no difference for the new company's future operation. Foreign individual person, HK or oversea enterprise can all be investor of FIE in China. The only difference is in the registration process. There will be less materials required if the investor is individual person. However, for certain industries, there might be limit that the investor can only be entities not individuals. Pls contact your CBIZE consultant to get more information about this.
6.
What is the minimum amount of capital we would need to put into for trading WFOE with import & export license? (view full answer)
Registered capital for trading WFOE with import/export license should be RMB 1,000,000.
Registered capital for trading WFOE with import/export license should be RMB 1,000,000.
