While China has become a viable market for foreigners interested in establishing companies, learning how to navigate from the beginning can be a crucial investment idea. China has put various company structures, tax compliances, and corporate restrictions that foreign investors must consider when establishing companies. It may feel like a hassle meeting all the requirements, but as an investor, you can get a reliable financial advisory in China to help you ease your investment journey.
Are There Legal Requirements Involved?
Just like establishing a company in your country, you need to follow the legal requirements when establishing a company in China. In this article. We’ll take you through the legal requirements necessary to establish a company in China. However, if you find it challenging to get through, you can seek help from a financial advisory firm in China for all the help you need.
Understand the Company Structure
Firstly, you need to decide which market entry vehicle to use when setting a legal business in China. What matters here is the kind of company you want to establish and the services you intend to offer. Chinese legislation identifies three major company structures that foreigners can use to enter the market. The company structures include:
Wholly Foreign-Owned Enterprise (WFOE)
Joint-Venture (JV)
Representative Office (RO)
With a reliable financial advisory in China, you’ll learn more about these company structures so you can join the market legally.
Tax Administration and Compliance
After establishing a Chinese subsidiary, a foreign investor should complete several tax compliance requirements. The Chinese Accounting Standards (CAS) will require you to submit a record of accounts monthly. Companies should also complete annual statutory requirements that include income tax filing, statutory audits, and publication reports. Other taxation requirements include payment of Corporate Income Tax (CIT), Value Added Tax (VAT), among others. Consider the help of a financial advisory firm in China to help you understand tax administration and compliance when establishing a company. Just like establishing a company in your country, you need to follow the legal requirements when establishing a company in China. In this article. We’ll take you through the legal requirements necessary to establish a company in China. However, if you find it challenging to get through you can seek help from a financial advisory firm in China for all the help you need. you can seek help from a financial advisory firm in China for all the help you need.
Corporate Restrictions
China has several corporate restrictions you should consider. For instance, you will be required to follow the guidance of China’s Negative List. The Negative List provides restrictions that foreign investors should consider before establishing companies in China. Depending on your company structure, find out whether your company follows all the legal rights to operate in China.
Final Thoughts
Before establishing a company in China, consider all the entry requirements and restrictions. As a foreign investor, you may find all those entry processes overwhelming. Luckily, our financial advisory firm in China will come in handy to help you figure it out.
