Dear Mr. Yang,
you have created a perfect website, I like it very
much. Now, I need your help with some questions, namly the following
1) Company A is a Rep. Office in Beijing registered
via FESCO of a foreign compay, now she will change to a jointventure
in a year. If so, what will be the registration capital and how is the
difference of the annual Rep. Office costs to JV costs?
2) Company B is also a Rep. Office Beijing registered
via FESCO, she will register a company, if in the form of JV or Limited
Company, in a year, what will the registration capital be and how will
her annual costs change?
Could you give me a detailed answer?
Many thanks in advance and best regards.
Your Website Visitor
Thank you for visiting my website. It's my pleasure
to answer the questions you asked.
Generally speaking, to set up a JV, the minimum registered
capital is US$200,000. I am not sure what is the meaning of the 'annual
cost'. If you want to know the difference of the tax, here is the answer.
A JV should bear the business tax at 5.56% of the total business volume
and income tax at 33% of the profit. However, in the first several years
from JV make profits, the income tax is exempted or half-paid. A representative
office should bear the business tax and income tax based on its cost.
In China, there are two kinds of JV, one is general
JV, the other is cooperative JV. There are many differences between
them. However, the tax is the same.