China

Belgian and/or Chinese customs

From one of our customers. We have been aske to announce this event:

 

Dear Mr. Milar,

After many years of doing business with China, you may have come across some customs issues with Belgian and/or Chinese customs while exporting your goods to China or importing goods into Belgium.

To offer our help and assistance in a more tailored way, we would like to invite you to our 4th ChinaCustoms event on Monday, May 6, 2013 during which you can meet the new Belgian Customs Attaché, Mr. Eddy De Cuyper, based in Beijing. Moreover, you will have the chance to discuss your problem privately with the responsible persons from the Belgian & Chinese customs during an individual meeting.

Agenda:

14:00 – 14:30: Registration
14:30 – 14:35: Welcome speech by Mr. Bernard Dewit, Chairman, BCECC
14:35 – 14:50: Presentation by Mr. Sun Xiangyang, Minister Counsellor Customs, Mission of P.R. China to the EU (Hong Kong)
14:50 – 15:05: Presentation by Mr. Eddy De Cuyper, New Customs Attaché in Beijing, China
15:05 – 16:30: Networking reception in the lobby

15:15 – …: Start of private individual meetings

Places are limited for an individual meeting, we register on a first come, first serve basis! Please send usan email before April 26, 2013 with your questions and/or problems in order to receive more detailed answers to your questions. 

Venue:
Sheraton Brussels Airport Hotel
Brussels National Airport
1930 Brussels
Located across the departure halls of the airport.

 

 

 

Interested in joining us? Please send us the attached registration form by e-mail to events@bcecc.be or by fax to 02 649 04 39. Subscription fee for BCECC members is 30€/person and 60€/person for non-members.

Best regards,

If you’re interesting on setting up company in Hong Kong , please contact us. Start company in Hong Kong

China & Hongkong – Offshore

Beijing plans for HK-Mainland Offshore Drive: Beijing’s top planning agency is drafting a raft of measures to encourage mainland firms to use Hong Kong as a springboard for offshore investment. Measures would include encouraging more mainland firms to list in Hong Kong and issue yuan-denominated bonds in the city to finance overseas projects, and to encourage mainland firms to set up operations in Hong Kong specifically for overseas investment. The National Development and Reform Commission (NDRC) will support joint investment by mainland and Hong Kong firms in overseas infrastructure, mining, energy, high-tech, advanced manufacturing, and logistics projects via equity investment, M&A, and greenfield investment (SCMP).

startupr – for company formation in China

Start your business in China

Download above the Catalogue of Industries in which Foreign Investment is Encouraged.

Click here for: company formation in China

Understand to China and open your company

Good Sunday afternoon to all of you, I just recently came across this very interesting article for those who would like to know a bit a bout China and get real experience! Perhaps, you might become one of our customer once you pass successfully this program! Good luck and let me know if you have succeeded!

“The project aims to help European companies better understand the Chinese economy and increase their competitiveness on that market.”

A wide range of activities will be carried out to achieve this overall objective. They can be grouped under two main sections:

Trainings: 4 cycles of a high-quality training programme for executives working on international trade and/or China related issues from different European business representative organisations (such as: chambers of commerce, business federations, SMEs organisations, etc.)
Result: better services to companies interested in the Chinese market

For more information click here.

For our service – company formation in China, click here.

 

tomas m

What does it mean an offshore or being an offshore? Offshore company!

Offshore territory is any jurisdiction except your resident one ( where you currently live) mostly known for the legal, tax and financial benefits or from the company management point of view. It might be UK (not only UK others countries are offshore) once you live in Luxembourg or USA (not only USA others countries are offshore) once you live in China. It’s quite simple isn’t it?

 

To be offshore in banking industry means to have a bank account in  different country than you reside.

 

It would be fine to mention what does it mean to be “onshore”. Onshore might be regarded as the jurisdiction where a company is domiciled and in which it pays a significant rate of tax. There is even a term in resource management when founder comes to low cost country (e.g. as China) and will use the advantage of the low labor cost.

 

Nowadays, I would like to more stress not just the offshore or onshore matter but the globalization taking an effect in trading and IT industry. Tthere is now quite easy way to start your own business with really low costs as was mentioned before e.g.: open International Business Company  in Seychelles + find your product ( good or service) + set up web and launch business into 48 hours.

 

It’s simple, isn’t it? startupr.com

What is WFOE? – Wholly Foreign Owned Enterprise

What is WFOE? - Wholly Foreign Owned Enterprise

Wholly Foreign Owned Enterprise – WFOE is the vehicle for foreign companies decided to take the business activities in China. Further, Limited Liability corporation with the ability to manage and control within the limitations of the laws of the China.

Different Type of businesses under WFOE

Manufacturing – this was the first government inintention to support foreigner companies come over to China and launch the business.
Trading – as a second reason for foreign companies start in China (the easiest way to start trading company is in HK).
Retail & Wholesale – this particular business model has become in favor a few years ago for companies realizing the purchasing power of Chinese customers.
Consulting & Services – most common business type. Here we can include Law firms, Business consultants, Software developers, Product developers, Investment consulting, marketing and promotion consulting and many others services.

Advantage of WFOE
- you don’t need to involve Chinese partner
- you can invoice yours partner in RMB (this is one of the biggest reason for Consulting & Service firm incorporating in China)
- control of human resources
- you can structure and develop your company according to yours goal

Business license
Once you obtain the business license from the office of Industry and Commerce, you can start your business (you might get the temporary Business License which might speed up the launch before getting the permanent one). The business license is mostly given for 15 – 30 years depending on the type of business. For incorporation process visit this article.

Registered and Paid up Capital
There is a big burden in regards to registered and paid up capital, though. If you want to go smoothly there is recommended to put up 160,000 USD. This amount of paid up capital is more about to get approved from local government which might make you difficulties if you put the minimum registered capital.
The scope of registered capital is from 35,000 USD – 160,000 USD. It varies on the mature of your business you intent to do so. The lowest amount is for consulting firm where you don’t really need that much money to secure the run of business by registered/paid up capital. On the other hand, manufacturing needs more stability and to show up to government that you can withdraw a money once company needs. The paid up capital is mostly required to be paid up to 20% of the registered capital, the balance must be remitted within 2 years since the company has been founded.

Location
Location is very important. Before you start with incorporation there is quite interesting and important reminder as an investor, you must rent an office in advance – it’s quite wired however this is the regulation and you need to follow up! The another thing is that the office can’t be residential building and can’t be virtual address either! For that reason, make a sure that the owner is clear on this point and the local government office allows to register business in this office. Ask the owner of the to put into the contract the note claiming that it has been checked with local authority approving the vacancy.

Before you decide to incorporate a company make sure that you really understand to the Chinese environment and your consultant (company helping you to incorporate WFOE) or solicitor understands you. There is quite a lot of interpretation in regards to company formation, please, make sure that you and yours management are aware of every situation applying for your venture in China.

If you wish to open up a company in HK or in UK, it will take 24 hours however China is different jurisdiction carrying a lot of burdens (and much less costly) which need to be followed – the incorporation process might be found here.

Why to set up company in Hong Kong and use it as holding for Chinese company? Read more here.

Why set up a business in Hong Kong for investing in mainland in China?

Why set up a business in Hong Kong for investing in mainland in China?

Hong Kong is ranked as one of the best city for doing business by many ranking agencies. it has one of the most flexible and supportive corporate governance regimes in the world – one of the most easiest way of company formation.

 

Advantages of entering China via HK

Double Tax Arrangement (DTA) – Comprehensive DTA between China and Hong Kong, entered in August 2006. Hong Kong has gained many benefits, as such reduced withholding tax rates on dividends, interest, royalties and exemption treatment for certain capital gain.

 

Closer Economic Partnership Arrangement (CEPA) – Free trade agreement concluded between China and Hong Kong on trade and investment.
It provides big opportunity for Hong Kong companies to gain greater access to the Mainland market.

 

RMB offhshore centre – HK as a bridge between China and the rest of the world. RMB Trade Settlement Scheme adopted in April 2009 to allow eligible enterprises in Shanghai, Shenzhen, Guangzhou and Zhuhai to settle cross-border trade in RMB with trading partners in HK and ASEAN countries.

 

Startupr is here to help you make a first step. Incorporate with us!

Order form People Republic of China Incorporation service WFOE – Wholly Foreign Owned Enterprise

People Republic of China (PRC) is one of the most difficult jurisdiction for opening a company however there is big potential for coming foreigner companies to succeed once having own so called WFOE in China. There is a need of consultation before opening the company due to the business scope of your desire entity.

 

If you ask how long does it take to incorporate a company in PRC, please see the steps how to incorporate in China. If you want to see the process according to documents, see the section of application forms for WFOE.

 

For further information, please contact me on tomas@startupr.com

Incorporation process as a way of being fully integrated in Chinese business environment – What documents do I need?

Incorporation process as a way of being fully integrated in Chinese business environment - What documents do I need?

This article is a follow up of the previous one strengthening the necessity of incorporation process in PRC (People Republic of China). The whole process is time consuming however you need to follow up the strict rules given by Chinese government. One of the most important part is a submit of document to local government in order to incorporate your Chinese company. Below, you can find more about the paper work during the registration process it’s understandable and if you pay more attention to each of them then you realize that it’s quite simple and all required documents are just in your office. We have divided documents into tow parts. One of them is focus on the part before launching the application process and the second part covers mostly required documents by government.

Documents list for setting up foreign owned enterprise

1)    The copies and translation versions should be the same as original ones.  

2)    All the documents should be printed out one A4 paper, and the signature must be black writing-ink.

3)       The documents with foreign language must be translated into Chinese.

4)       All the documents bellow are required by the government.

1. Documents prepared by investor

No. Name of the Documents Original/copy Amount Notice
1.            Credit Letter from bank Original one It should be issued by the account opening bank of the investor. This letter briefly introduces the credit of the foreign investor. 
2.            Lease agreement (in China) Original one With the stamp tax
3.            Property right of office location (in China)  Copy  one With the stamp of the landlord. 
4.            Passport or ID card of the Legal representative of the new company Copy  one Foreign people just provide the passport (certified by notary)
5.            ID card or passport of the secretary Copy  one Same as the No. 4
6.            Photo of the legal representative of the new company Original  one 1 inches without with white background
7.            Resume of legal representative after 18 years old Original  one Simple one 
8.            ID card or passport of the supervisor  Copy  one Same as the No.4 
9.            Audit report of the investor of last year Original one Only for trading company. It is ignored if the foreign investor existed less than one year. Copy certified by notary

 

2. Documents prepared by our company which should be signed by the foreign investor

No. Name of the Documents Original/copy Amount Notice
1.            New preapproval application  Original One -
2.            Promise letter for setting up the foreign company Original One Signed by the General Manager of the foreign investor
3.            Power of attorney for setting up the foreign company Original One Signed by the General Manager of the foreign investor
4.            Application for approving the foreign enterprise  Original One Signed by the General Manager of the foreign investor
5.            Article association of the new company  Original Three Signed by the General Manager of the foreign investor
6.            Application for setting up the foreign company for Industry and Commerce Administration  Original One Including “Application Form”, “list foreign investor ”, “form of legal representative”, “name list of the director, manager and supervisor” and the “certificate of office location”, these forms should be signed by the General Manager of the foreign investor
7.            Appointment attorney  Original One Should be signed by the General Manager of the foreign investor, and will be submitted to the Industry and Commerce Administration
8.            Power of attorney to our agency Original One Should be signed by the General Manager of the foreign investor, and will be submitted to the Industry and Commerce Administration
9.            Application form of the secretary Original One Should be signed by the legal representative of the new company
10.         Appointment letter for the chief director and the supervisor  Original Two Should be signed by the General Manager of the foreign investor
11.         Hire letter of the manager  Original Two Should be signed by the legal representative 
12.         Power of attorney for receiving the legal documents  Original Two Should be signed by the General Manager of the foreign investor and the legal representative of the new company
13.         Other application forms Original Each one Should be signed by the legal representative of the new company, and with the stamp of the new company 

Steps lead to incorporate your WFOE in People Republic of China

Steps lead to incorporate your WFOE in People Republic of China

 

Business and Company registration process Wholy Foreign Owned Enterprise (WFOE)

1.       Name submission   

a.        The application to Beijing Administration for Industry and Commerce – 5 working days to get the approval on the company name

b.       The application to Chaoyang Bureau of Commerce – 21 working days to get the Certificate of Approval

2.       Registration with Beijing Administration for Industry and Commerce to obtain temporary Business License – 9 working days (here you can possibly start your business)

3.       Registration with Public Security Bureau and ordering of official rubber stamps – 6 working days

4.       Organizing initial Corporate Code License including IC Card – 5 working days

5.       Registration with Foreign Exchange Administration – 20 working days*

6.       Registration with Local Tax Bureau and obtain Taxation License – 7 working days*

7.       Registration with State Tax Bureau – 2 working days*

8.       Registration with Statistic Bureau – 2 working days*

* 5 – 8 can be applied at the same time, the rest have to be done step by step

9.       Opening of basic account and capital account including the application for relevant official administration documents, among others. (vary with different banks)

10.   Confirmation with bank about the capital amount – 1 working day**

11.   Confirmation with Foreign Exchange Administration about the capital amount – 5 working days**

12.   Capital Inspection Report arrangement – 2 working days (you can also get a help from accounting firm which is recommended)**

13.   Obtain Business License – 7 working days**

14.   Obtain the formal Corporate Code License including IC Card – 4 working days

**10-14 have to be done in order

15.   Registration with  Financial Bureau – 10 working days ***

16.   Registration with Customs Administration – 5 working days ***

***15-16 can be applied at the same time

Whole process of registration might take up to 3-4 months however once you receive “Business License”, you might start your business.