Free Online Articles Directory
Home Page  Tom Lee |
|||||
 |
Tom Lee - ArticlesAdvantage of using Hong Kong Company to apply for WFOE in ChinaHong Kong's corporate law is strongly based on the British Legal System, the setting up of a Hong Kong is a str. Local businesses are regulated and Hong Kong regards itself as a low tax centre rather than a tax haven. Taxes are levied on profits which is 16.5% since Financial Year 2008/2009. Under special circumstances, a Hong Kong company may even declare business transactions as offshore which are subject o 0% tax in Hong Kong. Set Up China Wholly Foreign-Owned Enterprise (WFOE) in ShenZhenThe Wholly Foreign-Owned Enterprise (WFOE) is one possible business structure that can be used by foreign investors to register and license a business in China. The WFOE is a limited liability company (liability is limited to the amount of the registered capital) that is 100% owned by foreign investors. China Joint Venture Company Formation In ShenZhenJoint ventures with Chinese companies offer one of the most effective ways for western companies to tap the massive China market. In a sino-foreign joint venture, the Chinese company usually brings the labour, land use rights and factory buildings, while the foreign company delivers the necessary technology and key equipment, as well as the capita Set Up China Joint Venture in ShenZhenA Joint venture is a company set up and invested by Sino and foreign investors. It effectively uses the advantages of local enterprises.
However in China, some industries invested by foreign investors can only be in the form of joint venture, and the quantity of such limited industries is decreasing consistently. Incorporate China Wholly Foreign Owned Enterprise (WFOE) in ShenZhenThe Wholly Foreign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. Guideline to China Business Registration in ShenZhenMore and more international SME are setting up their own presence in China in order to source products/services directly from China or enter the Chinese market. However, given the alien nature of local regulations and business environment in China, it is critical to be proactive and fully prepared before you take the strategic move to set up your own presence in China. Avoiding tax problem for Representative Office formation in chinaA Chinese Representative Office (RO) may be the easiest and the cheapest way to establish your firm’s presence in China. However there are some traps which you should be aware of before and after the RO’s set up. Company Formation In ShenZhen ChinaAfter China’s entry to WTO, most industries in China welcome foreign investment, WFOE setting up in China becomes the first option of foreign investment’s entity structures instead of Rep. Office setting up in China At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China. Register China Representative Office in ShenZhenStarting your business by setting up a representative office in China is an effective and relatively cheap way. However, a representative office is not an independent legal entity. It is prohibited from engaging in direct business activities, such as manufacturing, production and sales. So its business scope is limited. Disadvantage For Registration of Representative Office in ChinaChinese foreign investment law does not permit a Representative
Office to carry out direct business activities. It is limited to
activities such as market research, product promotion, and
liaison. It may not charge fees for its services or engage in profit-making activities such as direct sales or marketing.
|
 |
|||
|
Article Categories
|
|
||||
|
|
|||||
