Download How open your business in China - Knowledge

How start your
business in China
---by Zhao Qin
About the speaker
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MSc IB student
Department Head
Department Mgr.
Vice-President
Zhao Qin
CERAM
Metro
Changhai
Changhai
2003-2004
2004-2005
2005-2006
2006-Now
Classifacation of Chinese Enterprise
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State Enterprise
Private Enterprise
Joint Venture
Classifacation of Chinese
Company
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Limited Company
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Stock Limited Company
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2 to 50 investors
Registered capital: 0.03M RMB or more
5 to infinite investors
Registered capital: 5M RMB or more
Individual enterprise
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single investor
Registered capital: 1 RMB
Procedure of setting up your
company
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Entitle
Capital verification
Compose articles of corporation
Register company in industrial and
commercial bureau
Apply Organization Code Certification from
supervision bureau
(continue)
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Certificates from other function department
Open primary account of your company
Apply Tax Registration Certificate from tax
bureau
Apply your company’s invoice
Start your business
How entitle your company
江西省
昌海 糖酒食品
有限公司
Region
name industry
Ltd. Co.
 Chinese only
 “China” “National” “Intertional” state
enterprise only
 No same name in the same industry and
region
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Procedure of verifying capital
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Get “Name Approval Certificate” from
industrial and commercial bureau
Open a temporary account of your company
Enough money in the account
Articles of your company
Sharehoulder’s ID certificate
Accountant office verify the capital
Which documents you need to
register the company
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capital verification report
articles of corporation
rental contract
Name Approval Certificate
fill the sheets
make your seals
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offical seal
contract seal
business seal
Function of industrial and commercial bureau
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Company registration
Advertising supervision
Consumer right protection
Brand registration
Keep market order
Use of Organization Code
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ID number of the company
tax, bank, social security, vehicle, custom
Function of supervision
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bureau
standardisation
goods’ bar code
goods’ quality and quantity supervision
Which function departments
you also need to contact?
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Sanitation bureau
Bureau of Culture
Commercial Commission
Commission of Science Technology
Education bureau
Primary account
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only one and required
taxation supervision
draw cash
Types of Chinese tax
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Turnover taxes
Income taxes
Resource taxes
Taxes for special purposes
Behaviour taxes
Agricultural taxes
Customs duties
Chinese taxation system
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State taxation office
Local taxation bureau
Financial department
Custom department
VAT rates
Coverage of collection
Rates
Exportation of goods (except otherwise
stipulated by the State)
0%
Agriculture, forestry, products of animal
husbandry
13%
Crude oil, mine salt and goods other than
those listed above, and services of
processing, repairs and replacement
17%
Consumption tax rates
Taxable items
Tax rates
Tobacco
50% 40% 25% 25% 30%
Alcoholic drinks and alcohol
25% 15% 240 yuan per
tonne 220 yuan per tonne
10% 5%
Cosmetics
30%
Skin-care and hair-care products
8%
Precious jewellery, pearls, precious jade and stones
5% 10%
Firecrackers and Fireworks
15%
Gasoline
0.2 yuan per litre 0.28
yuan per litre
Diesel
0.1 yuan per litre
Motor Vehicle Tyres
10%
Motor-cycles
10%
Motor cars
3%,5%,8%
Business tax rates
Taxable items
Tax rates
communications and transportation
3%
construction
3%
financial and insurance businesses
8%
culture and sports
3%
post and tele-communication
3%
entertainment
5%-20%
services
5%
transfer of intangible assets
5%
sales of immovable properties
5%
Enterprise income taxes
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Normally, the amount of Enterprise Income
Tax payable is computed on the basis of the
taxable income and by applying the rate of
33%.
Besides the statutory rate, two lower rates of
18% and 27% are designed for some less
profitable enterprises.