Legislation of China

Service packages «China-RO» Service packages «China-WFOE» Legislation Tax System

List of laws and regulations

Act name
Scope of law
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Tax treaties entered

Albania
Algeria
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Cambodia
Canada
Croatia
Cuba
Cyprus
Czech Republic
Denmark
Ecuador
Ecuador
Egypt
Estonia
Ethiopia
Finland
Former Yugoslav Republic of Macedonia
France
Georgia
Germany
Greece
Hong Kong (China)
Hungary
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Jamaica
Japan
Kazakhstan
Korea (Republic of)
Kuwait
Kyrgyzstan
Lao People's Democratic Republic
Latvia
Liechtenstein
Lithuania
Luxembourg
Macao (China)
Malaysia
Malta
Mauritius
Mexico
Moldova (Republic of)
Mongolia
Morocco
Nepal
Netherlands
New Zealand
Nigeria
Norway
Oman
Pakistan
Papua New Guinea
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Serbia
Seychelles
Singapore
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Sudan
Sweden
Switzerland
Syrian Arab Republic
Tajikistan
Thailand
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

Tax Exchange Information Agreement (TEIA)

Argentina
Bahamas
Bermuda
Cayman Islands
Guernsey
Isle of Man
Jersey
Liechtenstein
San Marino
Virgin Islands (British)

List of state regulatory authorities

PRC State Administration for Industry and Commerce
Enterprise Registration Bureau
Beijing Administration for Industry and Commerce
Shanghai Administration for Industry and Commerce
PRC State Tax Administration
PRC Customs Administration
State Currency Control Administration

Corporate info

Legal system
civil law with socialist characteristics
Types of entity
Equity Joint Venture (EJV), Co-operative Joint Venture (CJV), Wholly Foreign-Owned Enterprise (WFOE), Representative Office (RO)
Shelf companies permitted
No
Incorporation timescale for a new company
5 days
Company suffix
有限公司 (Limited in Chinese)
Sensitive words
foreign words; names of foreign countries (regions), international organizations, parties, government bodies; words causing damage to state security of China and misleading people
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
No
Information to be kept at the registered office
certificate of incroporation, resolutions of board of directors, accounts
Seal required, type of seal
company seal: oval, diameter= 4.5 cm, red ink used, unlike Chinese companies without 5-point star in the middle, with logotip engraving possible; account seal, legal representative seal
Redomiciliation (to, from) permitted
not permitted

Director and secretary

Minimum number of directors
1 director + 1 supervisor
Residency requirements for directors
No
Corporate directors permitted
No
Directors’ meetings/frequency/location
No requirements
Disclosure to local agent
Yes
Disclosure to public
No
Company secretary required
Yes
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No requirements
Corporate shareholder permitted
Yes
Meetings/frequency/location
Yes / according to articles of association / no requirements
Disclosure to local agent
Yes
Disclosure to public
No
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
30000
Minimum issued share capital
No requirements
Minimum paid share capital
30000
Authorized capital payment deadlines
20% (but not less than minumum) before registration, the rest - within 2 years or the term set by competent authorities
Issued capital payment deadlines
No requirements
Standard currency
Yuan
Standard authorized share capital
1000000
Standard par value of shares
1
Shares with no par value permitted
Yes
Bearer shares permitted
No

Taxes

Personal tax
3-45%
Min. rate for corporate tax
25%
Corporate tax (in detail)
The standard income tax rate is 25%. There are preferential tax rates for companies from certain industries (in particular, high-tech), regions / zones and small businesses
Capital gains tax
Regular rate
Capital gains tax. Details
VAT
13%
VAT. Details
The standard VAT rate is 13%. For some goods and services, rates of 9% and 6% apply. The tax rate for small VAT payers is 3%
Withholding tax
10%/10%/10%
Other taxes
Social contributions, Real estate taxes
Exchange control
Yes
Government fee
Yes
Stamp duty
0,005-0,1%

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
No
Requirement to file Annual Return
Yes
Publicly accessible Annual Return
No
Audit required
Yes

General information shortly

Location
Eastern Asia
Total area
9.596.960 sq.km
Population
1.449.670.556 (2020)
Capital
Beijing
National currency
Renminbi
Conditional reduction of currency
CNY
Against USD
0,15 (2022)
Climate, average max and min t°
extremely diverse; from tropical in the south to subarctic in the north; in the north and northwest avg. winter t (January) is -25°С; avg. summer t (July) is +22°С; in the central part avg. summer temperature (July) is +20°; avg. winter temperature (January) is -5°; in the south avg. summer temperature (July) is +28°; avg. winter temperature (January) is +18°
Time difference from Moscow
+ 5 hours
Dialing code
+86
State language
Chinese
Ethnic groups
92% are ethnic Chinese, the rest 8% are 55 ethnic groups among which the most populous are Zhuang, Hui, Uigur, Yi, Miao, Tibetans, Mongols, etc.
Literacy rate
96,4% (2019)
History
China is one of the most ancient civilizations in the world which has a 5-thousand year history. Throughout centuries the power in China transferred from one dynasty to another, moreover, sometimes China became a part of a foreign state (e.g. Yuan and Qing dynasty). The territory of China was invaded on a regular basis, however, most of the invaders were Sinicized eventually and assimilated into Chinese ethnos, and the territories became Chinese. The period of the Tang and Song Dynasties in the 7th – 14th centuries is called the Golden Age of China due to the majority of scientific discoveries and cultural achievements. The last dynasty was Qing, which was overthrown by the revolution of 1911. The result of the revolution was establishment of the Republic of China in 1912 led by Sun Yatsen, the leader of the Chinese Nationalist Party “Guomindang” who was promulgated the President. In 1928 Guomindang under the command of Chiang Kai-shek managed to unite the country. A lot of efforts to build Chinese state were made during 1937-1945 Sino-Japanese War. Increased disruption between Guomindang and Communist Party of China made the unification impossible and caused the next round of civil war in China. The war ended in splitting of China into two parts: the People’s Republic of China and the Republic of China (Taiwan). In the meantime, most countries do not recognize Taiwan as a sovereign state and tend to support China’s position that Taiwan is one of the provinces of PRC.
Credit rating
A+
Government type
socialist state
Executive branch
Head of government: Premier; Government: State Council, formed by the National People’s Congress
Legislative branch
National People’s Congres (unicameral body, 2.987 members), elected for 5 years
Judicial branch
Supreme People’s Court, local people’s courts, special people’s courts
Unemployment
5,5% (2022)
GDP per capita rank
80 (2020)
Corruption perceptions index rank
68 (2021)

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