1. Wholly Foreign Owned Enterprises
In this kind of enterprise complete shareholding is of foreign individuals or entities. We can say that it is a kind of Limited Liability Company. It is also to be noted that only foreign individuals or international business enterprises can become shareholders of this kind of organization. Liability is included on the individuals only to the amount of Capital injected into the business. There is no paid capital involved in this kind of organization to establish consulting, trading, or information technology business etc.
Minimum Registered Capital requirement
- For consulting RMB1,00,000/-
- For trading RMB 5,00,000/-
- For Manufacturer RMB 5,00,000/-
Registered capital is the amount that is required by a company through investors to run their business until they can run their business from its own cash flow.
2.Foreign invested Commercial Enterprise
These enterprises are established for the purpose of retailing, wholesaling, franchising or trading businesses in China. The registration of Foreign Invested Commercial Enterprise is quicker.
Minimum Registered Capital required
- Wholesale FICE RMB 5,00,000/-
- Retail FICE RMB 300,000
3.Representative Offices in China
There is no minimum capital requirement for Representative Offices in China. These offices generally represents parent companies in China and used for market research activity in China to access the scope and depth of Chinese market to consider the future investment scope. These offices are not allowed to be involved in any kind of business for profit, sign contracts on behalf of the parent enterprise, receive revenue in china, issue official t6ax invoices, buy property or import production equipment.
In tis Tax rate is approximately 10% of the total amount.
4.Joint Venture Company registration In China
There are two types of joint Ventures Companies in China i.e. Equity Joint Ventures and Cooperative Joint Ventures.
It is a kind of company registration where domestic and foreign entities work together.