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The timeline for setting up a company in China can vary depending on the type of business structure and the specific requirements of your industry. On average, it takes between 4 to 6 weeks to complete the registration process for a Wholly Foreign-Owned Enterprise (WFOE). However, this can be longer for certain industries that require additional approvals or licenses.

Foreign companies in China are generally subject to several key taxes, including:

• Corporate Income Tax (CIT) at a standard rate of 25%
• Value-Added Tax (VAT) on goods and services, with rates ranging from 6% to 13%
• Business Tax (BT) for certain service industries (prior to VAT reform)
• Withholding Tax on dividends, interest, royalties, and other payments made to non-residents
• Customs duties and import VAT for goods imported into China

The specific tax obligations depend on the nature of your business activities, your corporate structure, and other factors. Our team can provide personalized guidance based on your situation.

Yes, according to Chinese regulations, all companies operating in China are required to maintain accurate accounting records in Chinese and in accordance with Chinese Accounting Standards (CAS). While you are not legally required to hire a local Chinese accountant, it is highly recommended due to the complexity of Chinese tax laws and accounting practices. Our team of experienced accountants is well-versed in both international and Chinese accounting standards, ensuring your company remains fully compliant.

Transfer pricing refers to the pricing of goods, services, and intangible assets transferred between related entities, such as a foreign parent company and its Chinese subsidiary. China has strict transfer pricing regulations to ensure that transactions between related parties are conducted at arm's length, meaning the prices are comparable to those charged between unrelated parties. Failure to comply with these regulations can result in significant tax adjustments, penalties, and reputational risks. Our transfer pricing experts can help your company develop compliant transfer pricing policies and documentation to minimize these risks.

Our tax compliance services include:

• Preparation and filing of monthly, quarterly, and annual tax returns
• Value-Added Tax (VAT) refund applications
• Corporate Income Tax (CIT) final settlement
• Withholding tax compliance for cross-border transactions
• Customs duty and import VAT compliance
• Compliance with local tax regulations and reporting requirements
• Tax planning to optimize your tax position while maintaining full compliance
• Representation during tax audits and inspections

We stay up-to-date with the latest changes in Chinese tax laws and regulations to ensure your company remains fully compliant and avoids costly penalties.