Chinese foreign companies

Information required for foreign companies + companies with natural persons as shareholders to settle in Qianhai

1. Company name (Shenzhen + trade name + industry + limited company)
2. Shareholder information, such as using a company as a shareholder and giving a Hong Kong company name, requires a PRC appointed lawyer notarization
3. Natural person shareholders and legal persons need to be present to provide their ID cards and return certificates
4. Corporate Identity Card & Home Return Card (Front & Back Clear Sketch Board)
5. Supervisor’s identity card and homecoming certificate (front and back clear sketch board)
6. Residential address of the legal person and supervisor
7. Business Scope (Business)

Handle the information obtained by the user

1. Original and copy of business license
2. Official seal, contract seal, financial seal, invoice seal, legal person seal
3. Articles of Association

Preferential policies that can be enjoyed by registering Qianhai companies

1. The address of the registered company in Qianhai can be attached to the address of the business secretary in Qianhai free of charge, and the enterprise can operate in a different place, which greatly reduces the cost of entrepreneurship and operation
2. If more than 70% of the main revenue of an enterprise registered in the Qianhai Free Trade Zone meets the Catalogue of Preferential Enterprise Income Tax, the enterprise will be subject to enterprise income tax at a reduced rate of 15%.
3. Insurance companies registered in Shenzhen are exempt from business tax on the income derived from providing international shipping insurance business to enterprises registered in Qianhai;
4. The income obtained by enterprises registered in Qianhai from offshore service outsourcing business is exempt from business tax;
5. Modern logistics enterprises registered in Qianhai that meet the prescribed conditions enjoy the policy of levying business tax on the difference of pilot logistics enterprises;
6. Improve the standards for the identification of technologically advanced service enterprises, and the identified technologically advanced service enterprises shall be levied enterprise income tax at a preferential rate of 15%, and the employee education and training expenses incurred shall be deducted before the enterprise income tax according to the proportion of no more than 8% of the total salary of the enterprise;
7. For private equity enterprises, Qianhai will give corresponding settlement incentives according to the scale of the private equity fund;
8. Overseas high-end talents can be exempted from individual income tax;
9. Qianhai’s innovative financial policies and low-interest cross-border loans have attracted more and more enterprises to settle in the Qianhai Free Trade Zone.

Register Shenzhen company

• Is a Hong Kong or Taiwanese registered Shenzhen company a foreign company?
• Yes, foreign shareholders who register companies in China are all foreign investors.
• In Sino-foreign joint ventures, can the Chinese party be a natural person?
• No, the Chinese side must contribute capital in the form of a domestic company.
• Can foreign companies be allowed in industries such as finance, real estate, education, transportation, and mining?
• No, these are all industries that affect the lifeblood of the country’s economy, and the shareholding ratio of foreign investors in some industries is restricted or even prohibited.
• Are there any requirements for a registered address?
• Proof of lease or title deed is required.
• Does the registered capital need to be paid-up?
• According to the time agreed in the charter, the actual payment shall not exceed 5 years in ordinary areas and 10 years in Qianhai

Guangzhou is an open coastal city in China, adjacent to Hong Kong and Macao, is the political, economic and cultural center of Guangdong Province, and is also a commercial and trade center city in South China integrating manufacturing, transportation, commerce, finance, information, education and talents, and is located in the regional center of the Pearl River Delta, one of the most economically active and developed regions in China.

Information required for foreign companies + companies with natural persons as shareholders to settle in Qianhai

1. Company name (Guangzhou + trade name + industry + limited company)
2. Shareholder information, such as using a company as a shareholder and giving a Hong Kong company name, requires a PRC appointed lawyer notarization
3. Natural person shareholders and legal persons need to be present to provide their ID cards and return certificates
4. Corporate Identity Card & Home Return Card (Front & Back Clear Sketch Board)
5. Supervisor’s identity card and homecoming certificate (front and back clear sketch board)
6. Residential address of the legal person and supervisor
7. Business Scope (Business)
8. Office lease contract: The owner must go to the district or town rental house housing management office to go through the housing lease registration and record, and sign a rental contract for more than one year;
9. Bank credit certificate

Handle the information obtained by the user

1. Original and copy of business license
2. Official seal, contract seal, financial seal, invoice seal, legal person seal
3. Articles of Association

Preferential policies for wholly foreign-owned enterprises in Guangzhou

1. Productive enterprises with a business period of more than 10 years can be exempted from the first two years from the year in which they start to make profits, and the enterprise income tax will be reduced by half for the next three years.
2. Productive high-tech enterprises with a business period of more than 10 years (subject to the certificate of high-tech enterprises) from the beginning of the year of profit, exempt from 2 years halved 3 years of enterprise income tax, halved of the enterprise income tax, enterprises can apply for approval, approved by the financial department at the same level to be fully exempted, after the expiration of the period, still for advanced technology enterprises for an extension of three years halved levy enterprise income tax, halved tax rate of less than 10%, according to the tax rate of 10%.
3. All technology-intensive and knowledge-intensive projects, or productive projects with a foreign investment of more than US$30 million and a long recovery period, can be levied at a rate of 15%.
4. For advanced technology enterprises, after the expiration of the period of exemption or reduction of enterprise income tax in accordance with the law, if they are still advanced technology enterprises after verification, they can extend the enterprise income tax for 3 years and reduce the enterprise income tax by half
5. After the expiration of the period of exemption or reduction of enterprise income tax in accordance with the law, the output value of the exported products in the current year reaches 70% of the total output value of the products in the current year, and the enterprise income tax can be reduced by half according to the tax rate stipulated in the tax law. For product export enterprises that have paid enterprise income tax at a rate of 15%, enterprise income tax shall be levied at a rate of 10% if they meet the above conditions.
6. If a foreign investor directly invests the profits from the enterprise in the enterprise, or sets up a new enterprise in the development zone with a business period of not less than 5 years, he or she shall return 40% of the enterprise income tax paid for the reinvested part, and if the above-mentioned investment belongs to a product export enterprise or an advanced technology enterprise with a business period of not less than 5 years, the enterprise income tax paid for the reinvested part shall be refunded in full.
7. Productive foreign-invested enterprises may be exempted from paying land use fees during the preparatory period stipulated in the contract. Product export enterprises and advanced technology enterprises can be exempted from land use fees.
8. The land in the development zone shall be transferred for compensation in accordance with the relevant laws and regulations of the state and local governments, and the state-owned land use certificate of the People’s Republic of China shall be applied for for the enterprises in the zone

In order to further optimize the investment environment of the Zhuhai Special Economic Zone, run foreign-invested enterprises well, and implement the autonomy and special economic policies granted to the Zhuhai Special Economic Zone by the state, the Zhuhai Special Economic Zone Management Committee has decided to implement further preferential treatment for foreign investment while conscientiously implementing the various preferential investment policies already existing by the state. The specific provisions are as follows:

Information required for foreign companies + companies with natural persons as shareholders to settle in Qianhai

1. Company name (Zhuhai City + trade name + industry + limited company)
2. Shareholder information, such as using a company as a shareholder and giving a Hong Kong company name, requires a PRC appointed lawyer notarization
3. Natural person shareholders and legal persons need to be present to provide their ID cards and return certificates
4. Corporate Identity Card & Home Return Card (Front & Back Clear Sketch Board)
5. Supervisor’s identity card and homecoming certificate (front and back clear sketch board)
6. Residential address of the legal person and supervisor
7. Business Scope (Business)
8. Proof of real estate and lease agreement of the business premises
9. Bank credit certificate

Handle the information obtained by the user

1. Original and copy of business license
2. Official seal, contract seal, financial seal, invoice seal, legal person seal
3. Articles of Association

Zhuhai’s main preferential policies for foreign-invested enterprises

1. Relax the proportion of domestic and foreign sales

Where a foreign investor invests in a project in Zhuhai that is encouraged or permitted as specified in the Catalogue or acquires or participates in a state-owned enterprise, the examination and approval authority does not limit the proportion of domestic and foreign sales, and the investor shall determine and adjust the proportion of domestic and foreign sales of the products according to the needs of the domestic and foreign markets and with the goal of ensuring the balance of foreign exchange.

Where foreign investors invest in Zhuhai in Category A projects restricted in the Catalogue, they can be given a domestic sales ratio of 30-50% upon approval by the Guangdong Provincial Foreign Trade and Economic Cooperation Commission; For Category B projects with investment restrictions, the Ministry of Foreign Trade and Economic Cooperation shall be submitted to the Ministry of Foreign Trade and Economic Cooperation for examination and approval of the proportion of domestic and foreign sales.

2: Reduction and exemption of corporate income tax

Foreign-invested enterprises located in Zhuhai are granted a period of enterprise income tax reduction and exemption from the year of profit, of which the first two years of operation of productive enterprises with a business period of more than 10 years are exempted, and the enterprise income tax is reduced by half for the next three years; If the investment in a port terminal has an operating period of more than 15 years, it will be exempted for the first five years, and the enterprise income tax will be reduced by half for the next five years; If the investment amount exceeds US$5 million and the business period is more than 10 years, the enterprise income tax shall be exempted in the first year and halved in the second two years.

The income tax of foreign-invested enterprises based in Zhuhai is %的優惠稅率徵收（內地為33% and 24 in the coastal economic development zone%）。凡經珠海市科委評定為“技術先進型”、市外經貿委評定為“產品出口型”（70% may still be subject to enterprise income tax at a reduced rate of 10% after the expiration of the reduction and exemption period.

For those who reinvest (increase capital or establish a new enterprise) with the profits of the invested enterprise for a period of not less than 5 years, 40% of the income tax paid for the reinvested part can be refunded, and if the reinvestment is made in export-oriented or advanced technology enterprises with an operating period of not less than 5 years, 100% of the enterprise income tax paid can be refunded.

3. Encourage the export of products to give tax rebates

Foreign-invested enterprises and “three-to-one-supplement” enterprises export products, except for restricted items that require an export license or purchase of additional products (according to the original examination and approval authority to apply to the Provincial Foreign Trade and Economic Cooperation Commission and the Ministry of Foreign Trade and Economic Cooperation Commissioner Office in Guangzhou), the export of other products are exempt from licenses, and the export tariffs and value-added tax are zero.

Foreign-invested enterprises can be refunded for the export of products that purchase taxed Chinese raw and auxiliary materials, parts and components for processing. Imported raw and auxiliary materials and parts for processing and production will adopt the method of “first levy and then refund”, which will be taxed first when imported, and tax rebate will be given when exported. The tax rebate rate for export commodities is: 17 for machinery and equipment, electrical and electronic products, means of transportation, and instrumentation%；農機、紡織原料及製品、鐘錶、鞋、陶瓷、鋼材及其製品、水泥為13%; 11 for organic chemical raw materials, inorganic chemical raw materials, coatings, dyes, pigments, rubber products, plastic products, travel goods and luggage%；目前執行6%, the export tax rebate rate of goods subject to 6 export tax rebate rate includes industrial products and other goods processed and produced with agricultural products as raw materials, and the export tax rebate rate of agricultural products is 5%. If there is any remaining tax refund, it will be carried forward to the next quarter for deduction.

4. Appropriately reduce land prices for high-tech industries

All foreign-invested production-oriented enterprises that have been assessed as high-tech industries by the Zhuhai Municipal Science and Technology Commission will be given preferential land prices, which will be priced according to the four categories of international, national, provincial and municipal levels and different regions of the land, and can be negotiated for installment payment.

5. Duty-free import of self-use equipment and spare parts within the total investment of encouraged and restricted Category B projects

All foreign-invested projects that fall under the encouraged and restricted categories B in the Catalogue and transfer technology shall be imported for self-use within the total amount of investment, except for the commodities listed in the Catalogue of Imported Commodities Not Eligible for Tax Exemption for Foreign-invested Projects (including televisions, video cameras, video recorders, video players, audio equipment, air conditioners [excluding central air conditioners], refrigerators, electric freezers, washing machines, cameras, photocopiers, program-controlled telephone exchanges, microcomputers and peripherals, telephones, wireless pagers, fax machines, electronic computers, Typewriters and word processors, automobiles, motorcycles and all tariff codes in Chapters 1 to 83 and 91 to 97 of the Customs Tariff of the People’s Republic of China are exempt from customs duties and import value-added tax. Equipment imported for self-use by foreign government loans and loans from international financial organizations, and non-valued imported equipment provided by foreign businessmen in processing trade shall be subject to the above provisions. The above items are also exempt from customs duties and import value-added tax on the technology and accessories and spare parts imported with the equipment in accordance with the contract.

6 Preferential treatment in Zhuhai Free Trade Zone is available

Zhuhai Free Trade Zone is located in Hongwan, covering an area of 3 square kilometers, the implementation of closed management, foreign investors in the zone can be engaged in export processing (mainly development funds, technology-intensive projects), entrepot trade (approved to carry out commodity futures trading), warehousing and transportation (including bulk bonded means of production trading business), wholesale and retail, finance and insurance (approved can be trial offshore business and foreign exchange futures business), and other special services (such as the establishment of lawyers, accountants, auditor firms, etc.). The business scope of all enterprises in the bonded zone (except for those prohibited by the state) is not restricted, including that production enterprises can also engage in trade business.

Enterprises located in the bonded zone can freely enter and exit all kinds of goods (including production equipment, parts, raw and auxiliary materials, fuel, packaging materials, etc.) in the zone and abroad (including Hong Kong and Macao), and the customs clearance shall be subject to the filing and registration system, and the import and export license shall be exempted (except for commodities subject to quota exports), and the import duties, value-added tax, and consumption tax shall be exempted (excluding a few commodities such as automobiles, tobacco and alcohol subject to taxation), and there shall be no time limit for the display and storage of imported goods, and there shall be no deposit account for the import and export of materials and parts of the export processing industry, and no deposit shall be collected. The export tax rate is zero.

With the approval of the customs, enterprises in the bonded zone can import and export goods from non-bonded ports or other bonded areas in China, and the goods in the bonded zone can also be transported out of the bonded area for sale after paying customs duties, value-added tax and consumption tax; Goods from non-bonded areas entering the bonded zone shall be regarded as exports, and export tax rebates may be processed in accordance with regulations.

Foreign-invested enterprises in the bonded zone can enjoy the national enterprise income tax reduction and exemption policy (see Article 2) and the tax rate is 15%, and those who meet the relevant national incentive policies can be levied at a reduced enterprise income tax rate of 10%.

The FTZ implements the Regulations on Foreign Exchange Administration in the Free Trade Zone, which allows financial institutions inside and outside the FTZ to open foreign exchange and RMB accounts, and can directly settle foreign exchange or RMB with banks without going through the verification procedures for export receipts and import foreign exchange payments, allowing the currencies of various countries to circulate in the zone.

7. Allow investors to apply for entry with Hong Kong and Macao vehicles for their own use

For foreign businessmen whose actual investment in Zhuhai has reached a certain standard, during the validity period of the contract, the Hong Kong and Macao license plate vehicles used by the investors can apply for a driving license to enter Zhuhai or Guangdong Province.