Support and development of small businesses is one of the priorities of today's economic policy of many advanced foreign countries.

The National Economic Development Program of China provides for 15 years (2006-2020) to focus on the development of 11 key sectors, including the telecommunications and IT industry.

In recent years, China's services industry has developed a rapid pace. The new period of industrialization should be a turn from the resource-intensive production to a high-tech and high-tech resource-saving method of production with a significant improvement in the environmental situation in the country.

The Chinese government considers small and medium enterprises with the most important stimulant of economic growth, the revival of the market and expand employment opportunities. Over the past 20 years, the small business sector has become an integral part of the Chinese economy and now vigorously creates a huge number of jobs and develops new innovative technologies.

The government improves the system of posting public procurement in this sector, is engaged in the preparation of qualified and enterprising specialists, assists in the development of foreign markets. In 2005, the Law on Stimulating the Development of Small and Medium-sized Enterprises was adopted, which is intended to maximize these enterprises in rights with large companies, especially in accessing modern technology, market information and financing. Of particular practical importance is the provisions on the establishment of the State Fund for the Development of Small and Medium-Medium Enterprises "(funded at the expense of the Central Budget), the protection of lawful incomes of small enterprises and their investors from the encroachments of any individuals and organizations, on tax benefits to enterprises providing a significant number of workers Sites unemployed and disabled. The law provides for the admission of this sector of the economy into many income industries, and only some key sectors of the economy will remain under the control of the state. Here are some features of Chinese small businesses and its main economic indicators 2010 (Fig. 10)

Figure 10 - Main MP indicators in China for 2010

In 2010, the rapid development of small businesses was noted, its profitability increased, there were more than 4.3 million small and medium-sized enterprises in the country and 27.9 million individual enterprises, which operate over 75% of the occupied urban population.

This amounted to 99% of the total enterprises in the country, which accounted for almost 60% of GDP and 74.7% of the added value of industrial products.

The small and medium-sized business sector owns 65% of patents, 15% of technical innovations and more than 80% of China's new products.

At the same time, almost 99% of enterprises belongs to the category of small businesses with the number of up to 100 people, and only 0.6% refer to secondary enterprises with the number of people employed from 101 to 999 people.

In 2010, the volume of exports and imports of new and high technologies of China amounted to $ 218.25 billion and $ 197.71 billion. An increase of 31.8 and 22.5%, respectively, and the main growth was provided by the Small Sector Medium enterprises.

The total amount of goods and services for 2009 reached 2.3 trillion. Doll. It brought the PRC to the fourth place in the world after the United States, Germany, Japan, ahead of England, France, Italy and Canada. In 2010, the PRC GDP reached 2.7 trillion. dollars, or more than 2 thousand dollars per resident.

A huge contribution to this dynamic growth was made by Chinese small businesses, which burly developed together with the general economic growth of the country. In the People's Republic of China, there are currently over 40 million medium and small enterprises that have become the driving force of China's economic development.

Data on the development of the economy of China and the dynamics of the MP are presented below. (Fig. 11)

Figure 11 - Main indicators of the development of small enterprises in China

In 2010, they produced 55% of the country's GDP, the taxes contributed to the state into the state amount to 46% of their proportion among the organizations of China is about 99%. Currently, these enterprises account for 75% of patented developments and 82% of the total number of jobs in the country.

This means that the third doubling of the key indicator of economic power occurred not for ten, and in just six years. Thus, in 30 years since the beginning of the reform, China's economic potential increased 15 times, its foreign trade turnover grown almost 80 times (from 21 to $ 1600 billion) at an average growth rate of 16%. In terms of its share in world trade, which has reached 9%, and on gold and foreign exchange reserves that have reached 1 trillion. Dolls, China was ahead of Japan. It happened against the background of impressive growth of foreign direct investment. Over the years of reforms, 570 thousand enterprises have been created in the country with foreign capital for a total of $ 670 billion. One taxes from foreign entrepreneurs allow you to finance budget spending on education and health care.

In the structure of active subjects of MP on organizational and legal forms, entities carrying out activities in the form of an individual are individual entrepreneurs, the number of which is 27,993,124 units or 62.9% of the total number of active subjects of SMEs. The number of peasant farms amounted to 18.5%. The share of legal entities of small business is 18% of the legal entities of the Middle Entrepreneurship 0.6%. (Fig.12)

Figure 12 - Structure of organizational legal forms, in%

As a result of a number of measures taken to support small businesses in the country, the dynamics of the number of enterprises increased over several years. In many industries, they occupy leading places. Small and medium enterprises have become an important source of economic growth in China and their number is growing. According to statistics, small and medium enterprises account for 99.3% of the total number of enterprises in the country (Table 2)

Table 2 is a number of small and medium-sized enterprises (SMEs), 10 thousand units.

The main conductor of the state economic policy in the country is the National Commission for Development and Reform (NDRC). One of the most important areas of its activities is the formation of conditions for the dynamic development of small business. To do this, its composition includes the "Department of Small and Medium Entrepreneurship" and formed by the "Chinese Center for Coordination and Cooperation of Business" (SSVSS). The SSSSS is a special minor enterprise service agency and at the same time provides economic and technological cooperation between national and foreign organizations to support and develop entrepreneurship.

The main functions of the SCVSS are: the study of the role, state and sector needs; collecting information and the wording of the proposal to develop a policy that promotes its development; assistance in creating a comprehensive service system for small and medium-sized businesses; Organization of trade fairs, exhibitions and assistance in carrying out business negotiations; Training, information services, consulting and diagnosing business. The SSSS has developed a number of permanent government programs for supporting small and medium enterprises.

In order to the fastest development of this sector, many conferences on the exchange of information and experience of the most successful enterprises with the participation of various countries and international organizations are organized. The SSVSS regularly holds international exhibitions, on which only over the period from 1990 to 2005, more than 950 international projects for the development of small businesses in China are signed for a total of $ 6.2 billion Small enterprises.

In order to ensure a comprehensive and timely information

service of the country and all state bodies on all issues of SME activities for the decision of the government in 2001, a state non-commercial information service was established (CSME). CSMEO activities are supported by the "Department of Development of SMEs" in NDRC. The website of the CSMEO represents 58 main columns and 180 thematic sections containing up to 1000 different messages that more than 200 thousand visits attract each day.

More than 10 thousand different agencies and mediation companies are involved in the work of the CSME, which contribute to the development of business relations between enterprises, initiate fairs and inform about the most important government initiatives and authorities of all levels relating to the activities of small businesses.

The information network serves all regions of the country, covering cities and most rural settlements. This makes it possible to report on changing the current and introduction of new legal acts, on the trends in the country's socio-economic development, and also informs about the status and path of the development of small and medium-sized enterprises in the country and abroad. The CSME provides data on the supply and needs of local and foreign markets, characterizes the highest quality products produced in small and medium-sized enterprises.

In order to further expand the information network and to coordinate the activities of the CSMEO in terms of creating a high-quality three-level nationwide system of information services for small businesses in 2003, the main information agency "Beijing SMEs Online Company" was created. At the first level is the main website in Beijing, which has a second-level auxiliary sites in each region, and the third level includes information networks in all cities, economic zones and municipalities.

Along with increasing information about the state of the small business market, the CSME publishes information about the outstanding scientific and technical achievements, patents and new technologies, publishes data on the agencies that provide services to small businesses informs about the procedure for creating an enterprise, advises beginner entrepreneurs and provides information about activities. Credit and financial institutions reports the needs and labor resources for small and medium-sized enterprises in various regions and cities of the country, and also provides information on job seekers. In addition, CSMEO characterizes the peculiarities of the development of local and international groups of industrial enterprises, and also provides technological and commercial information about members of various unions of entrepreneurs.

For the convenience of users, online legal advice on regulating the activities of small enterprises and advising entrepreneurs on certification of quality management systems and management, as well as assistance in the development of plans to computerize enterprises.

CSMO serves state institutions, engaged in disseminating information on all public services related to the activities of small businesses. An analysis of statistical data on the status and activities of entrepreneurs, provides forecasts for their further development. Collect information about the activities of agencies and institutions of small business support in order to assess their effectiveness. Estabs information about the experience of the most successful enterprises, assists in the development of e-business. Helps entrepreneurs online to arrange applications in the SME Support Funds to assist.

The organization develops projects of training programs and assistance to starting business in business development, and coordinates the activities of training courses and programs. Analyzes the practice of the loan guarantee system in order to minimize risks. At the same time, the CSMEO provides everyone with a wide range of technical services, among them: email, search engines, selection of thematic information, operational research, video conferencing, website creation.

Thus, it can be concluded that the Chinese government constantly takes various measures to create more favorable conditions for the further development of small and medium-sized enterprises, improving the legal system for regulating its activities and providing services to this sector of the economy.

Many of our customers who decided to open the company in China often ask the question of what type of company with 100% foreign capital WFOE is to open. In fact, the answer is very simple.

What types of WFOE exist in China?

This is a common misconception that there are many types of enterprises with 100% foreign capital. In fact, there is only one such kind.

Despite the fact that the company is open, it is customary to be called a shopping, service or manufacturing enterprise, in fact, all of them are the same type of business in China, the difference is only in the declared business sector.

WFOE registration in China is the same, regardless of the sphere of your future business, and there is no difference for the government between them. A document that will be provided to the relevant authorities with an indication of the sphere of your business will change, but essentially the rest of the information you must provide will be the same.

Here are some important points to remember if you are going to open the company in China:

• No matter what business niche you choose, the WFOE registration process is the same.
• Usually you do not need to rent a factory, office or shop before receiving a business license.
• After receiving the license, you may need to apply for additional documents and permits that are related to your business or industry. For example, a trading company planning to import or export goods should apply for a license "for export and import". However, this does not affect the opening of the company itself.

How much do you need tools to open the company in China?

The initial minimum investments are mainly not mandatory (and also not taxed, in contrast to follow-up foreign investments, which in turn can be taxed). As a rule, state bodies do not check how much money you have in a bank, but we recommend placing the amount that will be enough to cover costs for 1-2 years of existence of a company (employee salary, rental of premises, etc.)

Depending on the scope of your business, we recommend the following amounts of capital investments:

• Services / Consulting - 100 thousand yuan
• Trade - 300 thousand yuan
• Production - 500 thousand yuan
• Food / Public diet - 500 thousand yuan

So WFoe is WFOE, and the point.

Do you want to open a company in China? Perhaps you have other questions: about expenses when opening a company or how can I create WFOE? We are ready to answer them.

The leaders of business structures from Russia and the CIS countries, which have been successful business for several years, based on the supply of goods and equipment from China, sooner or later think about registration in the PRC of a legal entity. Availability firms in China Allows you to build business in the territory of this country most effectively. Working from abroad under a contract with local commodity producers, and sometimes intermediary companies, - if the manufacturer's factory did not acquire an export license, part of the possible profit is inevitably lost.

For example, the availability of its own company in China will allow once and forever to forget about the troubles associated with "knocking" from the supplier at least a small part of the return VAT. Which is laid in the price of production and is subject to compensation by the state within a few months after the commission of the export operation, but consciously drags the supplier in order to obtain additional income. Many other examples can be given when working through your own company registered in China will allow market benefits and additional profits.

Nevertheless, not only with income, ease of work and new business development opportunities will be associated with opening and content in China of their company. It will takes considerable funds to the authorized capital of the company being created, spend money on registration, pay taxes, keep an office and at least one employee. And so that all these funds are not wasted, at the registration stage, it is necessary to especially carefully approach the selection of the organizational and legal form and the status of the legal entity being created.

The choice of organizational and legal form of the enterprise

In accordance with the legislation of China for entrepreneurial activities, it is allowed to use various organizational forms: from sales offices to companies and joint-stock companies. Given that the work of joint-stock companies is rigidly regulated and controlled, and the representative offices of foreign firms discovered herein are unsuitable and do not allow to carry out activities related to the direct revenue, the best way to create a legal entity in the form of a limited liability company. Such companies here can be created even with one member.

Legislation is allowed to create legal entities in China with 100% foreign capital, and this status is most convenient for Russian investors. Without Chinese legal entities and individuals as part of the founders, a new enterprise will be absolutely protected from possible litigation and partition of assets, which often occurs in joint ventures and companies involving local business. By creating a company with such status, the Russian investor receives maximum rights and opportunities for working in the Chinese market.

Formulation of the object of activity and the creation of the authorized capital

When creating and registering a company in China, it should be aware that the chief registration paper is a certificate of entrepreneurial activities, contains an important wording. - Description of the subject of the activity of this legal entity. In the future, the company has the right to exercise only those types of work, which are approved in the description of the subject. Therefore, when preparing documents for registration, this wording needs to be paid special attention.

Selecting the activities, it should be borne in mind that some of them are not recommended for enterprises with foreign capital in China (limited use mode), and some simply prohibited. You can get acquainted with the list of those and others in a special document regulating the placement of foreign investment. This is available on the website of China's Ministry of Commerce.

When registering an enterprise in the PRC, it is necessary to understand that the formed authorized capital will have to make a significant amount. Limited liability companies are obliged to form a UV in the amount of at least 30 thousand yuan. If the participant (founder) is one, not less than 100 thousand yuan. But the right to finally determine the amount of the minimum statutory fund for various activities has local government. The one that is engaged in the registration of enterprises.

In places, the registering organs adjust the size of UV depending on the planned volumes and activities, so the required amount can be quite large. But all the money contributed by the participants, one way or another, will work on them. The authorized capital can be used to purchase equipment, or use as a source of working capital for wholesale trade.

Registration procedure: professionals assistance is needed

Registration in China, a new company with foreign investments can be divided into several stages. If in the near future, it does not plan to receive special licenses on the territory of the PRC to be obtained, the new enterprise does not plan, following the established registration procedures, the following actions will be performed:

1. Event the registration department of the trade and industrial administration, decide on the name of the future company and reserve it.

2. Address to the Ministry of Commerce PRC to approve the decision to establish a company with foreign capital and obtain a certificate confirming this decision.

3. Applying for registration and provision of all necessary documents and the conclusion of the Ministry of Commerce in the Department of Chamber of Commerce and Industry. Where the name of the future company was previously reserved.

4. Creating a TPA decision on the registration of the company with 100% foreign investment.

5. Registration in all necessary instances: tax administration, organs controlling quality, labor resources and social security, statistical administration and other organizations.

6. Order and obtain made seals, working with banks to open a current account.

To register quickly and with minimal costs, and upon completion of it to get a package of impeccable documents, giving the right to engage in all the necessary activities, should be used by the help of professional lawyers. Consulting and inspection company offers a specialized service which includes all the necessary stages of the enterprise.

Important:

To obtain additional information and explanations of asiainspector specialists on enterprise registration issues, discuss the list of those interested in topics with our onpane - consultant, or use the services of the service " Write to us" All questions you will receive detailed answers from the company's specialists.

China is an actively developing promising market with cheap workforce and a large number of resources. It is not surprising that business in China is an attractive sphere for foreign investors and entrepreneurs, since the legislation and the country's policy allow them to open and successfully develop their own business here.

Basic legislative acts for businessmen in China

When planning the opening of a business in China, it is necessary to take into account the features of local legislation. The main legal acts of national significance regulating any economic activity in China are the following:

In addition, the norms of labor and tax legislation of the PRC should be taken into account, as well as local regional laws, prescribing how to conclude contracts in China, which to produce deductions and how to resolve disputes.

The most favorable areas for business development in the PRC

And finally, the most interesting is to restrict the debtors abroad. It is about the status of the debtor the easiest way to "forget", going to another abroad. The reason may be overdue loans, unpaid receipts of utilities, alimony or fines from the traffic police. Any of these debts may threaten the restriction of travel abroad in 2018, find out information about the presence of debt we recommend using a proven service.

The economic growth of the PRC allows you to well earn in the country not only by local, but also foreign entrepreneurs. Business development in China can go in one of three directions:

• export and sale of Chinese products;
• production of goods in the country;
• providing services in the Chinese market.

Moreover, good profits are guaranteed not only to large companies, but also to small enterprises.

Perspective activities in China for businessmen

Business ideas for entrepreneurs

If you want to "be trend" on the modern Chinese market, you should pay attention not to the following fairly favorable ideas, prompting how to develop a business in China as quickly as possible.

Registration of a business visa in the PRC

To carry out economic activities in the subway, foreigners require a special visa. With a long-term visit, a business visa to China for a year is suitable, in 2019 in Hong Kong, foreigners can be located without a visa to 14 days, but this option is more suitable for tourists and those who are only looking at the Chinese market. In addition, the short-term visit is an excellent option for those who purchase goods wholesale in China.

There are two types of visas in the PRC, allowing to work and receive income on the territory of the country:

A business visa to China is drawn up for Russians and citizens of other CIS countries at the Consular Department of the PRC Embassy. Document filing is also possible through specialized firms. The visa can be one-time, on 30 or 90 days with a corridor of the entrance of three months or twofold / multiple, by 30, 60 or 90 days with a corridor of entry three or six months. In addition, it is possible to form business multivisas for one or two years with subsequent extension.

The cost of the visa depends on its type and that citizens of which country it is issued. So, the price of a business visa to China for Russians will vary within $ 34-167. The cost of execution for citizens of other states is $ 34-102. Installed fixed tariffs for visas for visas for US citizens - $ 152, Romania - $ 34-81, Serbia - $ 3, Israel - $ 31, Canada - $ 123.

Visa registration is carried out within 5 business days. The urgent visa can be obtained in 1-2 days.

Package of documents for business visa registration in the PRC

When applying for a visa, you will need to assemble two packages of documents: mandatory and those that require a specific type of visa. The single kit is provided to the Consular Department of the PRC Embassy. Errors, corrections and inaccuracies in the documents are not allowed. It should be borne in mind that the annual business multivisosis may be requested only if there are two used short-term business visas, and for two years - with two used annual.

Depending on the type of visa, which you will need to receive a business visa to China, the following documents are submitted:

The official invitation to China for a business visa must contain the following information about the invited person:

• date of Birth;
• specifying the purpose of the visit;
• dates of arrival and departure;
• information about the place of stay in the territory of the PRC and the planned route;
• information about the inviting party (name, contacts and legal address of the company, printing and signature of the legal representative).

Extension of a business visa in the PRC

You can extend a business visa only once. The procedure is carried out in China in the local branch of the Migration Service of the Region Region of the arrived foreign citizen. The application should be submitted 7 days before the expiration date of the visa. The visa is extended for a period not exceeding the initial period of visa.

To do this, you will need the following package of documents:

• original and copy;
• certificate of registration at the hotel or a copy of the registration from the police;
• a copy of the extended visa;
• filled line of migration service;
• extract from the bank account confirming that your account has at least $ 3000.

Business migration for permanent residence in the PRC

The opening of its own company in China allows you to take a guideline post in it and provide jobs for local residents, which is a certain plus for any foreigner who wants to move to China to permanent residence.

To start your business in China, first you will get the most ordinary business visa, after which you can place a visa for a year, and then for two and extend it for another two years. Four years of successful activity, provided that you will not have problems with the law, you will regularly pay taxes and provide jobs for at least ten Chinese citizens, you will be able to apply for a permanent residence permit to the PRC for foreigners.

Opportunities in China for foreigners on a business visa

Specific opportunities in terms of earnings for foreigners in the PRC are directly dependent on the type of visa. If you have a category Z visa, then you can only work on hiring or engaged in private practice through the agency. In fact, this is a working visa. To organize your enterprise, a service providing company or open the store will require a visa of category M.

The chances of employment and attracting profitable partners significantly increases the knowledge of Chinese. If you are going to work on a business visa in China, you should, at a minimum, to master the spoken English.

As for the sphere of activity, the services in the field of computer technologies and programming, web design and translation are extremely in demand. We are in demand good engineers. Suppliers-suppliers of foreign raw materials and mediators are actively developing, buying Chinese consumer goods in bulk for subsequent resale.

Forms of ownership for foreign enterprises in the PRC

To a certain extent, the possibility of doing business in China depends on the form of ownership that you will be avoided for your company.

Joint enterprise with Chinese partners

The functioning of such enterprises is governed by the Law of the PRC "On joint ventures with Chinese and foreign capital". Cooperative companies in which the share of foreign capital is at least 25%, and there is one foreign and one Chinese investor. Allowed Capital - 1,000,000 ¥ (149 720 $).

Permitted areas of activity for joint ventures: energy, service sphere, chemical industry and pharmacology, metallurgy, construction, electronics, animal husbandry and agriculture, textile, food and lightweight industry, production of packaging materials.

Representation of a foreign company

The work of representative offices of foreign companies in the PRC is regulated by the Regulation "On the procedure for the registration of permanent missions of foreign enterprises in the PRC" from 03.03.1983 and the instructions "On the order of opening permanent offices of foreign companies in the territory of the PRC" dated 13.02.1995. Registration of representation of any foreign firm Must be approved by the State Committee for Economics and Trade.

Such companies are intermediaries between foreign and Chinese partners, are not independent legal entities and have no right to maintain economic activities. The main goal of the representation is to coordinate cooperation between the Chinese side and the foreign company. The accreditation period of representation is 3 years and can be repeatedly extended.

Company with fully foreign authorized capital

The work of such companies is regulated by the "PRC Law on Enterprises with 100% foreign capital", as well as the "Law on Companies in China". Fully foreign companies in the PRC can be organized to produce goods, providing services or trade, including imports or exports. Among the founders of the company can only be foreign citizens. The authorized capital should not exceed $ 140,000-200,000. During the first three months, 20% of the authorized capital is made, the remaining 80% for the next two years.

On the territory of the PRC, the company can work 30 years, after which the period of work can be extended to 50 years. At the same time, it should use advanced technologies, produce high-class products and export goods worth at least 50% of the cost of all manufactured.

It should be noted that since 2003, special attention is paid to the development of small and medium-sized businesses. And in 2005, the rapid growth of small enterprises was noted, accompanied by an increase in their profitability. Currently, the concept of small businesses in China implies the activities of companies, the monthly sales volume of which does not exceed 20,000 ¥ ($ 3032). They have a good reputation, give jobs and make profits. That is why small foreign companies have every chance of success in the PRC.

Procedure for opening a foreign business in the PRC

Stormy economic growth attracts not only investors, but also private entrepreneurs, ready to develop production and services on the territory of the country. Those interested in how to open a business in China for Russians and citizens of other states should first of all determine the area of \u200b\u200bactivity and then with a specific region.

At the same time, be sure to make sure that the type of activity is not included in the number of prohibited for foreigners. From the choice of a niche in the Chinese market will depend on the legal side of the issue and tax rate.

A specific set of documents and the form of an enterprise is also largely dependent on the Region Registration region.

In general, the business discovery procedure in China consists of the following steps:

1. Preliminary market analysis and obtaining necessary consultations;
2. Search for a counterparty when opening a joint venture;
3. Preparation of the necessary package of documents and legalization in the territory of the PRC of existing foreign diplomas and certificates;
4. Registration in the territory of the PRC.

Responsible stage - the choice of ownership when opening the company. Those who are still thinking about how to start a business in China, experts are recommended to treat joint ventures with caution. With this option, it will not be superfluous to have an advantage on the Board of Directors by the number of participants, as well as the compatriot as a trusted representative of the firm. Such a solution will allow you to fully control the activities of the company.

It is very important to know other specific features of the organization of business in China:

• in different regions there are various tax odes;
• chinese suppliers are not inclined to give discounts to foreign partners due to the extremely large number of proposals;
• solve problems with local authorities, tax and customs services better send Chinese employees;
• the proceedings in local courts can be delayed for a long time.

Package of documents for opening a business in the PRC

To register a foreign firm in China, you will need to collect the following package of documents:

• the name of your company in Chinese, approved by the Industry and Trade Officer at the Registration Place of Business;
• the names of all persons included in the management structure, with copies of their passports;
• legal address of the company and contact details;
• statutory documents;
• information about employees, namely quantity, nationality, salary and premiums;
• registration capital;
• business plan for established state pattern;
• other documents at the request of the authorities.

Where and how foreign companies are registered in the PRC

To engage in China entrepreneurial activities, you will need to get several permits.

1. Business permission is issued at the local office of the Ministry of Commerce (MOFCOM).
2. The permit for doing business in economically encouraged zones is issued by the local representative office of the National Development and Reform Commission (NDRC).
3. The license is issued at the local office of the State Administration of Industry and Trade (SAIC) within 30 days from the date of receipt of the work permit.

To make a license, you will need to submit the following documents:

• statement;
• authorized documents of the company;
• certificate of business permissions;
• approved by the company's name in Chinese;
• certified copies of business licenses of all investors;
• recommendation letter from the bank (which opened the main and additional accounts of the company);
• list of control formulation;
• other documents requested by the authorities.

After receiving a business license, without postponing, carry out the following activities:

• prepare a printing company and get in Public Security Burea (Public Security Bureau) permissions for all outlets on the territory of the PRC;
• sign up to the tax office;
• register at customs;
• sign up to SAFE (State Monetary Management PRC).

How much does it cost to open your business in China

The procedure for registering foreign businesses in the territory of the PRC is inextricably linked with the payment of a variety of duties for paperwork and issuing permits. In general, the total costs of their coverage can be about $ 2,000. Add transportation costs to this, accommodation costs in China and visa design.

Often, entrepreneurs trust the entire process of registration of a foreign company in China to specialized agencies. The cost of their services can be 5000-6000 $. And this is in addition to all taxes and fees. That is, in general, the registration of the company can do at 7000-8000 $.

Do not forget about the authorized capital of your company, which cannot be less than $ 140,000. However, at first it is enough to provide 20% of this amount.

Opening of the company's account in the Chinese bank

Corporate accounts in Chinese banks will be required to translate the authorized capital of the company, as well as storing working capital in currency and yuan - only three accounts that can be opened in various banks. Choosing banks, make sure that they are approved by the State Administration of Foreign Exchange (State Administration for Foreign Exchange) or Abbreviated SAFE.

The account opening procedure takes about 15-20 days. This will require the personal presence of an authorized person or a beneficiary.

The package of documents on the opening of the company's accounts includes:

• originals and certified copies of constituent documents;
• Certificate of good standing for companies existing for more than a year;
• original and certified copy of power of attorney to open an account;
• a business plan containing information about the company's counterparties and its activities;
• decision of the Board of Directors on opening an account;
• personal documents authorized person:
  • passport;
  • certificate of payment of telephone accounts or utility payments to confirm the registration site, dated no later than 2 months from the date of submission of documents;
• accounts and contracts confirming the experience of the account manager dated no later than 3-6 months from the date of submission of documents;
• contact details of the Commissioner on the account.

Questions for rent office premises in the PRC

To obtain the legal address of the firm, you will need to purchase or rent an office in China. At the same time, rent is the best option, since in this case the company's movement becomes more easily. Sometimes such premises can travel at once with two and three people.

The average monthly rental cost of the office without repair and furniture in the business areas of Guangzhou is $ 20 / square. m. There's an office with furniture in the central area will cost $ 600 / square. m per month. In Beijing, the average office rental cost is $ 3000 per month, and in Pudun, the square meter of office space will cost you about $ 70 per month.

In addition to the receptionable for customers and meeting rooms, for storage of goods, raw materials and finished products, it may be necessary to rent warehouses in China. The average cost of renting warehouses will be $ 0.30 per square meter. m per day.

When choosing a suitable room for the office, pay attention to the following points:

• the area in which the object is located;
• transport accessibility, which is especially relevant for warehouses;
• condition of the room (on different floors of the same building there may be different repairs);
• the age of the building (objects from ten years are considered to be old in China, and therefore rental in them is usually cheaper).

If you need an office rental with the legal address in Guangzhou in China or in another region, you should pay attention to the following nuances:

• long term lease reduces its cost;
• fully furnished premises to take more profitable;
• removing the office in the central areas of major cities, be prepared for frequent traffic jams;
• warehouses should be selected in close proximity to production to save on transport costs.

Popular business in the PRC for citizens of the CIS countries

China attracts many businessmen from the CIS countries developing their own production or favorable trade in the country.

Survived business destinations for citizens of the Russian Federation

Russian entrepreneurs are actively mastering in the territory of the PRC industry such as production of ice cream and sweets. In the service sector, the services of veterinary doctors at home and consulting nutitologists are gaining momentum. Among the production, mini-plants for the manufacture of beer, producing a popular franchise drink from famous Russian brands, showed themselves. Enjoy popular and inexpensive restaurants in Russian cuisine.

In addition, the import of fish raw materials in the PRC is very developed, with subsequent returns of fillet. Does not lose its relevance to the business in Guangzhou for Russians associated with the importation of goods of public consumption and Chinese technology in the Russian Federation.

Business in the PRC for entrepreneurs from

One of the most promising areas is trade, namely the import of Chinese production to the territory of Ukraine. A low price in good quality ensures a stable demand for such products. Moreover, the price of goods for the end user can increase by 2-3 times and remain quite attractive.

Restaurant business is another popular destination. Slavic cuisine as a whole and Ukrainian in particular is for the Chinese exotic. But they extremely highly appreciate overseas confectioners and willingly consume not traditional sweetness for the PRC.

In the area of \u200b\u200bservices, interests of the teaching of foreign languages, fitness centers and consulting and modeling agencies are of interest.

Business activities in the PRC for Belarusians

Businessmen from Belarus have long been mastered such areas as a restaurant business in Beijing and other cities, consulting companies, production covers for phones and technology. Belarusian companies successfully transfer their production to China using cheap labor and inexpensive raw materials.

Comprehensive companies that provide services for maintenance services between Chinese and European partners are developing.

As for the service sector, you will find Belarusian specialists in the Bureau of Translation, and in home personnel hiring firms / nanny. The popularity of models of Slavic outfit makes the organization of relevant agencies.

Business in the PRC for citizens of other CIS countries

Despite the fact that labor conflicts in China are sometimes permitted very long and not always in favor of a foreign entrepreneur the country attracts more and more foreign businessmen.

Strengthening the political relations of the PRC with the CIS countries contributed to the active development of economic relations. First of all, it is the export of Chinese goods to the territory of Armenia, Kazakhstan, Azerbaijan, Kyrgyzstan, Tajikistan, Moldova, Turkmenistan and Uzbekistan.

As for Asian states, it is from here in the PRC a lot of donkey skins comes. Cooperation in the field of energy, construction and pharmacology is very actively developing. Moldova actively cooperates with the Chinese in the banking sector and in the field of energy. In the PRC, not only Moldovan wine is also in demand, but also furniture, optical technique.

Acquisition of a finished business in the PRC

Sale of business in China is a very profitable business. Buying a finished business allows interested entrepreneurs to acquire already debugged production or service firm.

Proposals Mass! As for prices, the street mini cafes, located in a small room, having a bar rack and several tables, can be purchased for $ 1400-4000; Concrete mini-plant (mixer for concrete and molds installed in a small room) will cost $ 17,000-40,000; Multifunctional food plant for the production of sausages - $ 1,000,000, a large premium-class restaurant (in several floors with luxurious indoor decoration) - $ 1,200,000; Plant for assembling cars (only assembly is made) - for $ 4,000,000.

Not to be made in this question will help a professional assessment of the cost of business in China. When issuing the final conclusion by experts, such factors will be taken into account such as the true value of the object spent on business development. Amount of funds, financial performance and net calculation of assets.

Chinese offshore zones

The Chinese offshores are considered to include free economic zones (FEZ), giving 10% exports. And yet they are not offshores in pure form.

The main advantages of registration of companies in world offshore are zero taxation, lack of need to conduct complex accounting reports, closed registries of directors and the lack of need to pass tedious audits. In China, we will not see this. But here there is preferential taxation and favorable conditions for foreign investors. As for the Chinese market, deofshorization in 2017 in China has become a strong blow to offshore companies in China in China. According to the decree of the President of the Russian Federation signed in 2014, all Russian companies registered abroad, with a share of capital from 25%, should deduct taxes in the Russian treasury. However, only if the company's profit will amount to more than 10,000,000 000 ($ 168,461). The announced transition period was three years and ended in 2017.

No offshore bank details in China have not lost their advantages. Among their advantages is the lack of requests from the Chinese side of the company's beneficiaries, a high degree of reliability of Chinese banks, the minimum list of documents for accounting (constituent documents of the company and the passport of the director), the possibility of opening an account for the company from Hong Kong, a quick settlement system, a high degree of confidentiality and protection against freeze bills. It is not surprising that the offshore zone of China is so popular among American, European and Russian businessmen.

Offshore companies in Hong Kong

In addition to Chinese FEZ, the registration of foreign companies in Hong Kong is very popular. Foreign companies in this area are not exempt from local taxes, they are obliged to maintain accounting reports, and information about their directors is freely available since the institution. But the income tax in Hong Kong is 16.5%, and the income received by companies outside the territory was released from him. There are practically no restrictions on the maintenance of economic activities by foreign companies, there are no indirect taxes. Thus, although the territory is not an offshore in its pure form, foreign companies here have very significant advantages.

Taxes for foreign enterprises in China

Tax revenues in the PRC are 95% of the budget revenues of the country. It is not surprising that the compliance with the tax legislation is strictly followed. In general, the tax system in the country is distinguished by a great degree of transparency. A number of preferential conditions in the territory of the FEZ and free port cities contribute to attracting foreign capital. And preferential taxation of small businesses in China contributes to its development.

Owners of foreign enterprises in the PRC will need to pay the following taxes:

Pros and cons of the work of a foreign company in China

Any economic activity has both its prospects and advantages and the risks of development that can lead to significant losses. It is not the exception and activities of foreign companies in the PRC.

The undisputed advantages of the opening and development of a foreign company in China include:

• substantial tax breaks for small enterprises;
• cheap labor and high labor productivity;
• the ability to replicate analogues of products of famous world brands;
• record low cost of raw materials.

At the same time, foreign entrepreneurs may encounter such difficulties as:

• distrust of the local population;
• legal subtlety of federal and local legislation;
• the language barrier;
• expenses for the export of finished products;
• difficulties of searching for a suitable partner enterprise or organization of their own.

Nevertheless, small businesses in China, including foreign, go ahead with sevenmal steps. And if there is a desire, everyone can earn.

Trends in the development of the insurance market in the PRC

The Insurance Market of China is recognized as the world's largest in terms of the volume collected by the insurance premium. And the proportion of Chinese insurance business is growing annually. According to the latest forecasts, China's insurance market in 2017 grew by 15%.

The main reasons for the popularity of insurance services are an increase in the number of population and the growth of production.

Foreign insurers appeared on the territory of the country in the FEZ after the entry into the WTO. Currently, insurance services in China have more than 150 foreign and local companies. But more than 50% of the market control two - China Life Insurance and Ping An Insurance.

At the same time, the state completely frees from the taxes of the Company's insurance. Companies with a share of foreign capital pay 15% from profits against 33% of tax for local organizations. The provision of services is carried out in five directions: pension insurance, basic medical, life insurance, in case of unemployment and childbirth insurance.

Where to do business in China. What amount to start and how not to be mistaken: video

Ten years ago, China joined the WTO, after which the subwayed immediately attracted a lot of attention from investors and business owners. However, China became a truly attractive jurisdiction for foreigners in 2006. Then a new law was adopted, which radically changed the idea of \u200b\u200bthe corporate right: overly strict demands on the company's charter disappeared, the principles of doing business became more flexible, and the control is less troublesome. Recently, Ukrainian investors and business owners register companies in foreign jurisdictions. What do you need to know the owner on registration of his business in China?

Types of companies in China

In the case of China, as well as any other jurisdiction with the possibility of choosing a type of company, it is necessary to clearly understand how it will be the movement of the goods (and whether the company will be the company in generally related to the turnover). This is important because it all depends on whether it will be necessary to organize production whether this representation will be a major international holding or enterprise, whose activities are directly based on the use of intellectual labor results.

In China, you can register three types of enterprises:

• WFOE -Company;
• representative office;
• joint venture.

WFOE -Company

WFOE - Wholly Foreign Owned Enterprise - This is literally a company that is fully owned exclusively to foreign persons) - a limited liability company. The share of foreign capital is 100%. In such companies, the participation of Chinese investors is not required. This option is suitable for business with a clear specialization, because it will require a license to carry out operations in a particular area (except for export and import).

This is the perfect choice for those who want to independently determine the development strategy of their business, protect the company's intellectual property at the legislative level and compete with other types of companies. W.FOE The company also allows you to make the most effectively organize production in China, exporting foreign products in the PRC and sales in the domestic market.

Representative company

This is the most frequent registration scheme when the production of goods is not the goal of registering a new company. Most often used by the owners of international business as a representative of the parent company, as well as as an independent division for various marketing research, establishing contacts in the market, support services for business.

It should be understood that the representative office as a type of legal entity has no right to carry out their activities to profit. In this case, we are talking about the services aimed at developing business and increasing the profits of other companies. In addition to marketing, consulting and sociological services, representation can also be used to import goods from China, since this type of activity does not require special licensing.

Joint venture

Joint Enterprise (or SP) is an enterprise founded by a foreigner and mixed capital. The joint venture is the best option for those owners of the business who want to use the advantage of China's legislation, which favors local companies, opening them with access to medical, health and educational spheres. This partnership can be described as partnership in a limited liability company with the only difference that one of the two participants must be a citizen of the PRC. Most often, the joint venture implies a clear distribution of profits according to shares prescribed initially and investment from each partner.

However, there are more flexible forms of a joint venture. They allow a foreign partner to remove investment before the expiration of the existence of the enterprise and do not have clear requirements for the principles of profits. This type of company is also suitable for business owners requiring local partners and permanent contact with the local bureaucratic apparatus. In particular, businessmen seeking to register exactly such companies for exporting goods from industries or sales in the local market.

Of course, no jurisdiction is ideal in everything. This applies to the carefree Seychelles, and the tax harbors of the Caribbean, and the flexible Holland, and the Strict People's Republic of China. Definitely, if the business time goes to the international level, China is one of the most optimal options and as a sales market, and as a production and resource base, and as a huge purchase platform. Nevertheless, if for some reason the investor prefers not to register the company in China, but it wishes to take advantage of the capabilities of this market, the most decent and close alternative is Hong Kong. The company's registration in this jurisdiction will be useful if business operates exports from China through the Hong Kong buffer zone.