Types of Chinese company
- Wholly ForeignOwned Enterprise-WFOE
- Responsibility
- Minimum capital
- Min. shareholders
Generally recommended for
- Wholly ForeignOwned Enterprise-WFOE
- Limited
- 13,000 €
- 1
SMB or large companies
- Cooperative joint venture – CJV
- Limited
- None
- 2
- Company inpartnership with alocal partner
- Foreign investment joint stock company – FIJSC
- Unlimited
- 700,000 €
- 2
Big companies
- Holding
- Unlimited
- 25,000,000 €
- 1
Big companies
- Representation Office – RO
- Unlimited
- 45,500 €
- 1
Small businesses
- Equity jointventure – EJV
- Limited
- None
- 2
- Company inpartnership with alocalpartner
Corporate tax rate in China
In general the corporate tax rate in China is 25% but some exceptions exist:
- 15% for companies in the technology sector,
- 15% for the two first years of existence of a new company.
Questions
Why should I incorporate my company in China ?
- Within the framework of the China 2025 strategy, we observe a progressive upgrading.
- The risk of foreign over-indebtedness is low thanks to the substantial foreign reserve assets.
- The tertiary sector is well-developed and dynamic thanks to e-commerce.
- The infrastructures are of high quality.
Which difficulties can be encountered in China ?
- State-owned companies hold a substantial place in the economy.
- The high indebtedness of companies will have, in the future, impacts on the growth potential of the country.
- Banks are exposed to the high level of indebtedness of companies.
- The country encounters environmental problems.
- A progressive fall of the working population is observed due to the aging population.
Which are the cultural specificities of the world of work in China?
- Salutations are quick and without any physical contact.
- It is crucial to hold one’s business card with two hands while giving it.
- In China, the hierarchy is very important.
- The professional life is more important than the private life.
- Chinese don’t like to say no, a “yes” can often be a “no”.
- Smiling can be used to express discomfort.
- Doing business with friends is privileged, that practice is called Guangxi.
