Chengdu Joint Venture Registration Service
Hotline: 86-755-82143348 Email: amyhuang@citilinkia.com
The Sino-foreign joint venture is the enterprise that foreign companies, enterprise and other economic organizations or individuals (hereinafter referred to as "foreign joint ventures") to establish equity joint venture together with Chinese companies, enterprise and other economic organizations (hereinafter referred to as "Chinese joint ventures") within the territory of the People's Republic of China, on the principle of equality and subject to approval by the Chinese Government. Both parties to the venture shall share the profits, risks and losses in proportion to their contributions to the registered capital.
Peferential Policies in Chengdu-Preferential Policies for Business Income Tax
a.For foreign invested manufacturing enterprises with an operation period of over 10 year, staring from when profits are achieved, income taxes will be exempted for year 1 and year 2 and levied on a half rate from the 3rd to the 5th years.
b.the income tax on production enterprises with foreign investment shall be levied at a reduced rate of 24%. And the income tax on the production FIEs that adopt advanced technology and located in Chengdu Economic & Technological Development Zone or Chengdu Hi-tech Zone (including Chengdu Cross-Strait Scientific Industry Development Park) shall be allowed a reduced income tax rate of 15%.
c.Production projects with foreign investment in middle and west China, encouraged by the state industrial policies shall pay income tax at the reduced rate of 15% for three years on expiry of the current favorable tax period.
d.For foreign invested enterprises at west China (including Chengdu) and under the encouraged category of Guiding Directory for Foreign Invested Industries or belonging to the Directory for Advantageous Foreign Invested Industries at Mid-west China, provided the encouraged industries are the key business of the companies accounting for over 70% of the total income, income taxes will be levied on 15% during 2001 and 2010.
e.The FIEs which are engaged in technology or knowledge-intensive projects, or which make an investment over USD 30 million and have a long payoff period, which are engaged in production for energy and transportation projects, shall pay business tax at a reduced rate of 15% upon approval by the competent tax authority.
f.Following the expiration of the tax preferential period, the business income tax for foreign funded export enterprises shall be reduced by half of the state decided rate if their export for the current year exceeds 70% of the total production value. For export enterprises that pay business income tax at a rate of 15% of the state decided tax rate, the tax rate shall be reduced to 10% if they meet the abovementioned conditions.
g.The income tax on the financial agencies such as foreign funded banks, joint venture banks and etc., which are located in Chengdu, shall be levied at a reduced rate of 15%upon approval by tax authority foreign investors or operation capital from the head bank to the branch exceeds USD 10 million and with an operation period of exceeding 10 years. The business income tax shall be exempted for the first year and be reduced by half in the 2nd and 3rd year staring from the year the begin to make profit.
h.For foreign invested enterprise to utilize pretax profit to increase its registered capital or use after-tax profit to establish new enterprises, with an operation period over five years, 40%of the income taxes paid for the re-investment will be refunded by ratification of tax administration. If the new enterprise is engaged in high and new technology, export-oriented, infrastructure projects such as highway, energy, irrigation, or public facility or the development of agriculture, forestry, stockbreeding and fishery with at least 5 years' operation period, the paid business income tax for the re-invested value shall be fully refunded to the investors.
i.The foreign companies, enterprises and other economic agencies that have no branch in Chengdu but obtain income from Chengdu's bonus stock, inteerst, rent franchise fights and others, shall be allowed a 10% reduction rate on the income tax.
j.For foreign invested enterprises with R&D expenses increasing 10% over the previous year (inclusive), 50% of the actual R&D expenses may deduct the tax that year.
k.For foreign invested advance-technology enterprises which are recognized as advanced technological enterprises, after the expiry of their exempt or reduced tax period, half-tax rate period may be prolonged for additional three years as described by tax regulation. The income tax rate below 10% will be levied at 10% for the enterprises conforming to the half-tax reduction conditions
Registered and paid-up capital for Chengdu Joint Venture
(1) For the trading enterprises, the registered capitals are usually required as much as 500,000RMB or above; (the lowest capital is 30,000RMB)
(2) For the manufacturing enterprise, the registered capitals are usually required 1 million RMB or above;
(3) For the company of consultancy, technology, market research and development, the registered capitals are usually required RMB100,000 or above;
All of the registered capital can be paid in one time; (within 6 months after the date of issuance of the Company's business license) and can also be paid for many times in two years. In the first 3 months, 15% of the registered capital is mandatory. The terms of payment is determined by the volume of registered capital. The capital verification fees will be reduced if the terms of payment reduce.
Operating Procedures for Chengdu JV Registration-Entrusting Procedure
Step1: Fill in the application form (sign the agreement)
Step2: Entitle the company name
Step3: pay for the earnest money (50% of total)
Step4: submit the needed document
Step5: check the document
Step6: submit all the document to the government
Step7: inform the course to the customer
Step8: finished in the 20-50 working days
Step9: inform the customer to take the document
Step10: pay the spare money
Step11: sign the receipt.
Government Processing Procedure
Step1: Check the name form Industrial and commercial Bureau (pre-reserve commercial number/ name checking)
Step2: Approval of fire and environment authorities
Step3: pre-approval
Step4: Go to Bureau of Trade and Industry for the foreign investment approval certification
Step5: Apply for the business license from Industrial and commercial bureau
Step6: Apply for chops from Public and Security Bureau
Step7: Apply for the Organization Code License from Bureau of Quality and Technical Supervision
Step8: Apply for the registration license from State Administration of Taxation &Local Administration of Taxation
Step9: Apply for the foreign exchange registration license/opening capital account license from State Administration of Foreign Exchange
Step10: Opening the capital account in the bank
Step11: Opening the basic account in the bank
Step12 Apply for the IM&EX registration license from Customs (if needed)
Customer Processing Procedure
Step1: Foreign investors director meeting resolution
Step2: Entitle the company name
Step3: Business scope confirmation
Step4: Registered capital confirmation
Step5: Shareholder confirmation
Step6: Appoint legal representative of Chinese company
Step7: Chinese office confirmation (consider fire and environment factors if needed)
Step8: Transact lawyer's notarization and submit it to the authority dept to sign
Step9: Reference letter of bank
Step10: Entrust to transact
Step11: Inject the investment money to the capital account on behalf of investor
Step12: Capital verification
Step13: After-approval
Documents Needed for Chengdu Joint Venture Registration
- For the trading enterprise, the following documents are required:
(1) Board of director's meeting minutes or resolution of two parties;
(2) One proposed name (in Chinese), and provide two back-up names in case the first name is not available;
(3) Detailed information about the business scope and registered capital;
(4) Feasible study report;
(5) Original Articles of Association;
(6) Duplicate copy of the business license and certificate of incorporation of two parties;
(7)The original and copies of identity certification of pre-established company's legal representative, and color photo;
(8) Two original bank reference letters (from foreign investor's bank) indicating foreign investors' creditability, issued within 6 months in both English and Chinese language;
(9) Lawyer's notarization .
(10)Chinese investor's annual audit report and seals;
(11) The office address: your own house property or the rented commercial building (two original copies of lease signed and sealed by the local Housing Management Authority , showing the recognized registered address of joint venture. The signing party should be in the name of one shareholder or the foreign company; the purpose must be for commercial use) .
- For the manufacturing enterprise, the following documents are required:
1-9 The same as above
(1) Production address: your own house property or the rented commercial workshop (two original copies of lease with signature by Housing Management Authority, showing the recognized registered address of joint venture. The signing party should be in the name of one shareholder or the foreign company; the purpose must be for workshop use)
(2) Approval of environmental and fire departments.
-For the abroad natural person, the following documents are required:
(1) Board of director's meeting minutes or resolution of two parties;
(2) Duplicate copy of identity certification of foreign investors& Legal representative, directors of pre-established company;
(3) Lawyer's notarization of foreign investor's identity certification;
(4) Duplicate copy of ID & two color photos of the pre-established company's legal representative;
(5) Feasible study report;
(6) Original copy of Articles of Association;
(7) Two original bank reference letters (from foreign investor's bank) indicating foreign investors' creditability, issued within 6 months in both English and Chinese language;
(8) Chinese investor's business license, annual audit report and company's seals.
ATAHK Services for Chengcu Joint Venture Registration
ATAHK provides one-stop tailored-made services for foreign companies which would like to set up wholly foreign funded enterprises in Shenzhen of China.
(1) Approval document;
(2) Original Articles of Association;
(3) Foreign investment enterprise approval license;
(4) Both original and duplicate copy of business license;
(5) Cachet, financial, custom and legal representative private chop;
(6) Seal carving registration card;
(7) License of Opening account;
(8) Opening and canceling account confirmation;
(9) Both original and duplicate copy of Organization Code License & card;
(10)Registration license and form of State &Local Administration of Taxation;
(11) Foreign exchange registration license and approval certificate;
(12) Customs declaration registration certification;
(13) Finance registration license and form.
Time Needed for Chengdu Joint Venture Registration
(1) For manufacturing enterprise: 20-50 working days will be finished. (Count the time after the approval of environment & fire and the detailed time depends on the operation type)
(2) For the trading enterprise: 20-40 working days will be finished.
(The detailed time depends on the operation type)
Contact Us
If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86- 028-86676605 or emailing to 2355725123@QQ.com. You are also welcome to talk with ATAHK online by Wechat：2355725123
CONTACT: Esther
ADDRESS: Unit 1303, 13/F，Shidai Fengshang Bldg. 123 Caoshi St. Qingyang Dis. Chengdu China
