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How to form an offshore company in China.
Editor:admin  Date:2014-09-04  Browse:3734 Text Size Print

There are some forms of overseas business into China. But remember, you can not use offshore companies to apply the concept in China. China is a continental country such as Germany, Italy, her laws are very strict. 
Both forms are very common for overseas customers. Your choice depends on the way they operate in China. 
One is the representative office (RO) 
Two are wholly foreign-owned enterprise (WFOE) 
To learn more, I say the easiest way is Hong Kong registered company, and, because of China CEPA (Closer Economic Partnership Arrangement) protocol, the use of a Hong Kong company, registered again in China either as reverse osmosis or foreign-owned enterprises. 
How to use Chinese companies doing business in China? 
Basically, a lot of people are doing business in global trade. They will buy goods from Chinese suppliers (China factory), and sell to their customers overseas in China. 
Do you need to register a representative office in China? It depends on whether you need to use China's resources, as you need to hire employees or need to rent office in China in Chinese. 
1) Without the use of China's resources. In this case, if you need to recruit or do not intend to hire Chinese workers obey your commands, or you do not need to rent an office in China, you can use the Hong Kong signed with China suppliers of procurement contracts, they direct the goods shipped to customers outside China. For the Hong Kong company's bank account is opened in Hong Kong, there will be a variety of currencies, including the dollar, euro, yuan, ... and so on. You can pay debts by wire transfer or online, Chinese suppliers. In this case, there is no need for you to Fu Zhongguo tax, because you only sport procurement activities in China, you are not sold in China. You'd better not let your profits in China. You do not have to pay tax in Hong Kong, because you are doing offshore trading business through the purchase of goods from China and overseas sales. According to the legal system in Hong Kong, if the purchase of goods from outside China or Hong Kong and sold in places outside Hong Kong goods, the law will be treated as offshore trading activities in this trading activity. Offshore trading activity is a zero tax rate. I remember in Hong Kong to pursue English law. 
2) the use of China's resources and informal way. In this case, if you need to hire Chinese workers obey your commands, or you need to rent an office in China, in some special economic zones, such as Shenzhen, etc., in an informal way, you can work with a Hong Kong company to hire Chinese personnel can also use Hong Kong company, and signed a lease contract, lease office in China. Remember that this is an informal way. This does not mean that it can be done by Chinese laws. It has no force of law in China, because you are using a Hong Kong company. 
3) the use of China's resources and formal way. In this case, if you need to hire Chinese workers obey your commands, or you need to rent an office in China, the most important thing is you need to get legal protection, you need to use RO in China's Hong Kong companies to re-register. However, the Hong Kong company must have a history of over 200 years. In this case, you can use reverse osmosis to hire Chinese workers, rent warehouse, etc. If something happens, you can perform your legitimate rights and interests China. Once you have registered the reverse osmosis, you can open a basic bank account in China. The basic bank account can be a variety of currencies. You can use this bank account to settle wages and salaries, the company's operating costs in China, but you can not get the money to the bank account of income as reverse osmosis can not let you do business, income earned in China. Basically, the money in the deposit from overseas headquarters and pay operating costs in China. Can not open multiple bank accounts in China. Only a basic bank account. Unable to open branch RO reverse osmosis (other provinces). For example, if you are registered in Shenzhen RO, you can not register at the Beijing branch of the RO. If you need to register RO in Beijing, you need to do another registered in Beijing. One more thing, there is no tax RO. But it also needs to continue to tax and local tax authorities. 
 
Remember, you have no right to use the sales office in China, whether it is to sell your skills advisory services, nor sell any products in China. You let yourself and your invoicing invoice to your customer in China is illegal, it is a criminal offense to do so in China. 
 
If you need to do business (regardless of sales in China of your services or products) in China, you can use Hong Kong company as a limited way (informally) or registered foreign-owned enterprise (WFOE) in China. 
1) using Hong Kong company and sold in China. In this case, it is a fairly informal way (mode only), Hong Kong companies can sign any agreement or sales consulting services agreement with Chinese businessmen. You can open a company bank account in Hong Kong. Is a multi-currency bank accounts, including the dollar, euro, yuan, etc., to provide you with services or products you sell Chinese companies, they make settlements give you wire transfer to your bank account in Hong Kong. However, the Chinese company will deduct approximately 5-20% of the total amount of withholding tax. Accuracy rate does not depend on what products you sell, what kind of service you provide. Of course, your company does not have the tax in China, Hong Kong, or tax in Hong Kong, because you are doing business outside Hong Kong. 

2) register a company in China, you will conduct business in China and sold in China, and invoicing. In this case, you are totally doing business in China, you can rent offices in China, in Chinese sales of products or services, you can hire Chinese employees in China. You need to register Hong Kong company (the new company is set to OK), and use the Hong Kong company re-registered as a wholly foreign owned enterprise (WFOE) in China. Legal form, it is a limited liability company (LLC). Wholly foreign-owned enterprise is owned 100% of the Hong Kong company. Hong Kong company is a holding company; WFOF subsidiaries. Foreign-owned companies can open a basic bank account, as well as an overseas bank account. Bank account can be a variety of currencies. Chinese bank accounts can receive earn income, and operating costs can be paid in China. Foreign-owned enterprises need to submit monthly or quarterly financial statements to the local tax authorities and pay taxes monthly or quarterly (if it has profits). On an annual basis, wholly foreign-owned enterprise shall arrange Chinese auditors and audit reports and submit audited financial statements and tax documents to the local tax authorities and pay an annual tax, if it makes a profit. Profits tax net profit of 25%. As a wholly foreign-owned enterprises has exceeded the total monthly / quarterly amount paid monthly / quarterly tax than 12/4 month / quarter, only to pay the excess part of the year. For example, in a monthly basic, taxpayers have paid $ 12,000 over 12 months; on an annual basis to the audited financial statements show that it needs to pay an annual tax 15,000 yuan, so foreign-owned enterprises need to pay an extra 3,000 yuan . In contrast, on an annual basis, only 10,000 yuan tax, the tax authorities will be 2000 yuan returned to you. If the company intends to pay all the profits (the company's corporate income tax) to shareholders as dividends, paid outside China. This can be done such a requirement, the company announced profits as dividends to the shareholders pay tax on dividends. 5% dividend tax rate (on average). Then, the company can be remitted to overseas shareholders outside of China. This means that foreign-owned companies need to 5% withholding tax on dividends and paid to the tax authorities within a few days. After the foreign-owned enterprises registered, you will have to prove tax license, so you can buy a VAT invoice from the local tax authorities, then you can give your customers invoiced in China. Warning You can not beat yourself and your invoice issued VAT invoices to your customers is illegal in China, which is a criminal offense to do so in China. If you need to expand their business in China, you can apply for branches in different provinces. For example, you have a company registered in Shenzhen, and now you want to expand your business in Beijing, you can register a branch in Beijing's certificate. This is not a difficult process. Strict difficulties began from when you register at the beginning of wholly foreign-owned enterprises. About Hong Kong company, for your business in places outside Hong Kong, so there is no Hong Kong tax.


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