Chinese Company Registration Benefits

Chinese Company Registration Benefits

The benefits of registering a company in China are endless. Some of the benefits of registering a company in the most populous country of the world include;

  • One can own a company in China which will have just one director and one shareholder who can be non-citizens of China and also, they do not have to reside in China. The capital can be as low as US$15,000.
  • Sales are high in China, because the local market gets advantages from the achievements of China as the largest populated country in the world, the country with the second largest world economy having a GDP of  US$10,360 billion as at 2015 and a high but slow economic growth of 3% as at 2015
  • Manufacturing companies benefit in China from low labor costs. Though labor costs in China are rapidly increasing, monthly salaries in the manufacturing industry are still low compared to the Western standards and was US$700 in 2014. Companies with non-Chinese owners in China can also reduce labor costs by if located in underdeveloped parts of China
  • The level of productivity of Chinese workers and industries are increasing, though their efficiency is not up to the level of their Western counterparts with an 11% per year increase since 2007 as stated by McKinsey
  • Companies located in China also benefit fromlow cost like industrial use of electricity for US$0.6 per Kwi and the use of water for commercial purposes at US$0.6 per cubic meter. New business enterprises that are located in China can enjoy support from a big service industry that has numerous financial institutions and shipping agents;
  • Competition among Chinese regions and cities to attract foreign investors had made them establish lots of local industrial development zones. They also offer foreign establishmentsgood infrastructure, better transportation access, lots of tax incentives and a all day round customs clearance service.
  • Companies that do export their producing products overseas can make use of more than fifty four Export processing zones (EPZs) offer foreign companies that want to register a new company in China a reduced rate of corporation tax and  subsidized custom duties;
  • Because of all the reasons stated above, Apple and several other internationals have moved their manufacturing operations to China over the past years.
  • Multinationals that create a subsidiary in China will be able to make use of almost a hundred double taxation avoidance treatiesto reduce the withholder of tax on dividends remitted overseas. DTAAs have been signed by China with world leading markets like Russia, Germany, Japan, Singapore and the United States.