Blogs

Successful Authentication of Documents For Our Latest Client

Great news! Despite call the delays due to covid, we have successfully completed the notarization and authentication of documents for our US client in the e-logistics space. Would like to thank Robyn Evans our partner at CIBT visas for an excellent job during challenging times. Also proud of our Incorp China Shenzhen team members, Sharon Li, Matt Robb, Susan Dong, and Crystal Yang. Keep up the good work!

#china #business #incorpchina #usa #china #finance #office #logistics

A common topic among Western Businesses in China is shall I stay or shall I go?

At Incorpchina, we have been serving clients since 1983. We take a long term view of our business in China, and are here for you for the long haul. We are unwavering in our support of our clients, and now more than ever, we are here for you.

Today we have been on calls with our colleagues and business associates in Canada, USA, Australia and United Kingdom. In order to do intelligent contingency planning, companies need accurate information, not just knee jerk reactions. We are in constant contact with our teams Chinawide, and also with Trade Attaches from US and European Consulates.

We help companies based in China with trouble shooting and provide up to date information on the real situation on the ground within China.We believe that more communication, not less is critical during difficult times. The good news is that Shanghai is slowly opening up again. Other regions in China are open and functional. Our Shenzhen Office is busy with new WOFE set ups, as well as shut downs for clients. The shut downs were decided after carefull analysis and discussion.

Your company may be deciding “shall I stay or shall I go?” Let the experts help you in formulating your decision and be here to help you implement those decisions.

#china #business #internationalbusiness #opertion #wfoe #chinanews

Business & Personal Relations In China Podcast

SupChina recently released a podcast with host Chris Marquis featuring Robert Fisch as his guest. Robert is a master storyteller and he draws on his diverse experiences in China to illustrate some key principles that businesses can learn from, such as the importance of personal relations and the human touch when doing business in China. And he also provides some very practical advice on many topics from setting up a wholly foreign-owned entity (WFOE) to how business in China has shifted in the COVID era. 

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What is China’s Entrepreneur Visa?

What type of Visa do I need to setup my business in China?

What type of visa does someone need if they had just set up their company, and planning to stay in China for a long time to complete all the follow-up tasks, but cannot yet be employed by their own business so they can't get a working permit? How could this person legally stay in China during this period?

They could apply for something called China Entrepreneur Visa. This visa is designated as a more flexible way to legally stay in China to make sure things are going in the right direction.

What is an Entrepreneur Visa?

The entrepreneur visa, also known as the Private Residence Permit entrepreneurship visa, was piloted by the Chinese government in 2018. The visa is aiming to attract expert and talented entrepreneurs to start their businesses in China. Foreigners are granted the access to legally stay in China to conduct business activities, e.g., setting up the office, conducting industry research, and other required jobs to set up a WFOE.

Compared to the working permit, which could only be applied with sponsorship from an existing company, an entrepreneur visa allows foreigners to enter and stay in China before their company being set up. Once the company is being established, it could be used as a visa sponsor to apply for a working permit.

Who could apply for the visa?

A Chinese university graduate who is currently enrolled in one of Shanghai’s institutes of higher education and who has the stated intention to engage in part-time entrepreneurship applies with a business or innovation plan. This would usually require the student to have certain skills and have a plan related to government-designated science and technology parks.

A recent graduate (within 2 years) from top universities in the world who have made outstanding achievements in innovation and entrepreneurship.

An investor applies with an innovation plan or a business plan and shows their intent to invest in the plan. 

How to apply for an entrepreneur visa?

The process of applying for an entrepreneur visa is similar to one of applying for other visas. Such as providing university diploma and passport information, undergoing a health check…

Besides the essential documents, the applicant must also submit:

  • An investment certification form: This will often include documents to show the proof of funds if the applicant applies as a potential investor. 
  • An application letter: This would be the business plan and the explanation of the reason for wanting to start a business in China.

The entrepreneur visa would definitely be a great fit for people who wished to start a company in China. Compared to the other types of working visas, an entrepreneur visa would be less costly and more viable.

If you need more information about the visa or any related to registering a business in China, call 561-729-6508 or email robert@incorpchina.com for a free consultation.

Shenzhen Qianhai Area Extends the 15% CIT Rate Until the End of 2025 – V2

Corporate income tax (CIT) is a kind of income tax levied on the income from production and operation and other income gained by companies within the territory of China.

According to the new Income Tax Law of the People’s Republic of China, published in 2008, the general corporate income tax rate is 25%. The preferential corporate income tax policy of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen will be extended for another five years, and the corporate income tax will be levied at a reduced rate of 15%. Only qualified enterprises within the area can enjoy the preferential corporate income tax policy.

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Shenzhen Qianhai Area Extends the 15% CIT Rate Until the End of 2025

Corporate income tax (CIT) is a kind of income tax levied on the income from production and operation and other income gained by companies within the territory of China.

According to the new Income Tax Law of the People’s Republic of China, published in 2008, the general corporate income tax rate is 25%. The preferential corporate income tax policy of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen will be extended for another five years, and the corporate income tax will be levied at a reduced rate of 15%. Only qualified enterprises within the area can enjoy the preferential corporate income tax policy.

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Everything You Need to Know About Chinese Accounting Standards

Although the accounting regulation in China is based on the Generally Accepted Accounting Principles (GAAP), which is a system that shares 90% similarities to the IFRS (International Financial Reporting Standard), there could still be lots of differences and hard to handle. One of them would be the “Fapiao” system in China. Fapiao is basically the receipt that is handed to customers upon purchasing a product or service and is created by the government to show proof of tax payment. Companies are required to purchase the software and devices that are authorized to print fapiao to operate businesses.

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China’s Fapiao Invoice System

Compared to invoice in other countries, China’s invoice (发票 or fapiao in Chinese) is different as it fulfills a different role in the Chinese invoice system. For foreign companies that want to register and start a business in China, they have to get familiar with fapiao to engage in business activities in China.

What is a Fapiao(发票)?

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Update on the COVID-19 Situation in China

How has the pandemic impacted the Chinese economy?

The pandemic brought a negative impact to the Chinese economy, especially on the traditional service industry and some labor-intensive manufacturing industries. However, China’s outstanding disease prevention measures exceeded the international community’s expectations and China has recovered continuously since March 2020. The economic impact on the Chinese market is short-term and temporary. Nowadays, China’s economy is pushing the world economy.

Figures from the General Administration of Customs show that China’s exports and imports both grew by more than 25% from January to May 2021, compared with the same period last year. Even as much of the rest of the world continues to suffer from the epidemic, China’s orders for foreign trade products continue to grow. China continues to export goods abroad, and also introduces a large number of raw materials and products that meet the needs of the Chinese market. Imports of iron ore, oil, and soybeans were no less than in previous years, while imports of mechanical and electrical goods increased 21.8 percent. The demand power of the Chinese market is growing, which will help other economies recover and give a strong boost to the global economy.

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Everything You Need to Know About Tax Rebates in China

Everything You Need to Know About Tax Rebates in China

The Chinese government had many policies on tax rebates to encourage foreign companies to enter China as well as foreign professionals to work in China. These rebates are usually on taxes that have been paid, including income tax, import tax, VAT (value-added tax), and many others. However, in order to know the qualification of a tax rebate/tax treaty benefits and to claim such privileges, companies or individuals must complete certain forms and submit them to local authorities.

For business, you will need to first submit all the required documents including the business license and any other applicable operating license to the local tax authorities. And then you will need to complete several forms (all of the forms are in Mandarin Chinese). To key here is to prove that you have paid tax on an item that could have returned them as a rebate, under the VAT exempt, or having a preferential common tax refund rate.

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