Last year, China simplified the procedure for company
registrations, expatriate work visas and annual compliance to
encourage investment and commercial businesses. Let's look at
the changes that are likely to affect the way business is done in
Foreign investors may find it is easier to set up their new
operations in China with simplified procedures, shortened
application times and relaxed capital injection requirements.
3-in-1 business license
Companies looking to operate in China no longer need to obtain a
Business Licence, Organisation Code Certificate and Tax
Registration Certificate from three different authorities. They now
only need to submit one set of documents to the Administration for
Industry and Commerce (AIC) for a three-in-one business license.
This shortens the application process and is also more
Annual return filing
The annual inspection for inbound investments by the AIC has
also been changed to an annual return filing.
Foreign exchange registration
The State Administration of Foreign Exchange (SAFE) has
delegated local banks the authority to review foreign exchange
registrations for inbound direct investments by foreign investors
with effect on 1 June 2015.
Under the guidance of the SAFE, banks that have obtained the
financial institution identification codes can now handle direct
investment-related foreign exchange registration and other relevant
businesses. They can also fulfil duties such as examination,
statistics, monitoring and record-filing within the scope of their
Expatriate work permits
While foreign investors can enjoy simpler procedures when
setting up new operations in China, there are also changes to work
Expatriates can now apply for a
five-year residence permit or a Green Card.
Foreigners from certain nationalities
can apply for a Z Visa (Z landing visa) upon approval at Pudong
Airport, as opposed to in their home country.
Residence Permits have been cancelled
for Hong Kong and Taiwan expatriates.
China's continuous economic restructures have created more
opportunities for private capital and other financial industry.
TMF China provides solutions for corporations entering the
country for the first time. From general services including
incorporation, annual statutory compliance activities and changes
of legal documents, to:
Step-by-step guidance from searching
for an office location to opening a bank account.
Acting as contact person with related
Assisting on expatriate visa
applications, such as a five-year residence permit.
Setting up accounting and finance
functions in accordance with local requirements.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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