Company Formation China

Company Formation China

INCORP INTERNATIONAL is set to steer you through legal and tax requirements for China business registration.

  • In china, the corporate tax rate on all corporate profits is a flat 25%. Nevertheless, this incorporation tax rate is reduced for entities that are situated in special economic zones of the Guangdong, Fujian, and Hainan provinces to 15%.
  • Basically, china’s standard Value Added Tax rate in is 17%. a reduced VAT of 13% is of benefit to some sectors such as food industries and utilities. During importation of goods, the customs are expected to collect VAT at the applicable rate.
  • 97 double taxation treaties with countries around the world have been signed by China. Hence, tax treaties with world leading markets such as Germany, the United States, Russia, and Singapore.
  • A quarterly corporate tax return with the local authorities following China business formation must be presented and submitted within 15 days of the end of the quarter by all enterprises. Furthermore, a yearly tax return must be submitted within 5 months of the end of the tax year.
  • Production and business income, income from contracts, leases, services, bonuses, interest income, and income from royalties constitute the taxable income.
  • For China business formation, there is no China withholding tax on dividends to parent companies.
  • The tax year follows one calendar year in China, this starts in January and ends in December.
  • Most Chinese companies will need an annual statutory audit following China company setup. The submission of the annual audit report must be made to the relevant authorities.
  • The Ministry of Finance and the state administration of taxation constitute the tax authorities in China. Also, China has joined international organizations such as the World Trade Organization (WTO) and the Asia pacific economic cooperation (APEC).
  • INCORP INTERNATIONAL helps our Clients to efficiently and completely discharge the yearly accounting and auditing obligations of their China company through the following: i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budgets, and sensitivity analysis to better manage financial obligations and ease the process of reporting to the China accounting authorities.
  • These accounting and tax fees are an estimate of INCORP INTERNATIONAL fees to efficiently and effectively discharge your annual company accounting, auditing and tax obligations for an active trading company. INCORP INTERNATIONAL will more accurately advise accounting and tax fees, following receipt of a set of draft accounting numbers from your company. INCORP INTERNATIONAL fees are only US$750, for an inactive company.
  • It is of crucial importance for clients to be aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations yearly. Contact us if you need INCORP INTERNATIONAL’S help to clarify your annual reporting obligations.