China Briefing is a monthly magazine and daily news service about doing business in China. We cover topics relating to the Chinese economy, the market in China, foreign direct investment and Chinese law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates
January and February are always busy times for company administration in China, with annual license renewals and updates to file, together with procedures for preparing your annual audited accounts for 2013. The past year might have been a turning point for China. After the smooth leadership transition that took place at the beginning of 2013, the new cabinet led by President Xi Jinping and Premier Li Keqiang has been trying to play the role of reformers by further opening up the Chinese market and bringing more foreign investments into China. Thousands of administrative regulations were abolished by the State Council. Further, in November 2013, the Third Plenary Session of the 18th Central Committee of the Communist Party of China (CPC) revealed a series of comprehensive reforms which will be pushed in the following decade.
It is important for existing and potential investors to be aware of these ongoing changes. In this China Briefing issue we will discuss annual compliance requirements for foreign-invested enterprises, including wholly-foreign owned enterprises, joint ventures and foreign-invested commercial enterprises, as well as the less demanding requirements for representative offices. Tax compliance is especially important because an FIE can only repatriate profits to foreign investors after the Chinese tax bureaus are satisfied that all applicable taxes have been paid up. We will also highlight the key tax and legal changes that will significantly influence the way companies do business in China in 2014.
In this issue:
This year has seen some exciting changes in China’s foreign investment landscape as the government explores new ways to lessen previous restrictionson doing business in China. Most recently, the Shanghai Free Trade Zone (FTZ), seen as the testing ground of China’s economic reforms, has garnered a lot of attention. We along with many foreign investors are very interested to see what opportunities and benefits it will offer. To this end, we have been in close contact with officials in the Zone to learn about its establishment procedures and preferential policies available to various industries in the zone.
In this month’s issue of China Briefing, we introduce the simplified company establishment procedure unique to the zone and the loosening of capital requirements to be applied nation wide this March. Further, we cover the requirements for setting up a business in the medical, e-commerce, value-added telecommunications, shipping, and banking & finance industries in the zone. We hope this will help you better gauge opportunities in the zone for your particular business. Please don’t hesitate to contact us if you would like our assistance in further exploring opportunities in the FTZ.
In this issue:
Asia’s premier independent foreign direct investment practice, assisting multinational companies establish and grow in Asia from our offices in China, India, Vietnam and Singapore.