Our collection of resources based on what we have learned on the ground

Resources

Q&A

Which cities in China have officially applied to participate in the Value-Added ...

Which cities in China have officially applied to participate in the Value-Added ...

Nine other cities and provinces have officially applied to participate in the VAT Reform Pilot Program so far, including Chongqing, Shenzhen, Tianjin, Xiamen, Anhui Province, Fujian Province, Hainan Province, Hunan Province and Jiangsu Province. ...

Q&A

What should foreign investors beware of when relocating within or between tax di...

What should foreign investors beware of when relocating within or between tax di...

When possible, relocation should be avoided for cost and time reasons. Meanwhile, foreign investors considering relocation for other reasons should be aware up front that the process is quite likely far more challenging than you anticipate. Re...

Q&A

Besides tax de-registration, what else does a foreign investor have to do in ord...

Besides tax de-registration, what else does a foreign investor have to do in ord...

Beyond tax de-registration, the transfer process requires a foreign investor to re-do essentially all the steps taken in initially establishing the WFOE. Beyond merely the large number of steps required, the need to minimize costs, potential labor li...

Q&A

What is not legally allowed when changing address within a tax district in China...

What is not legally allowed when changing address within a tax district in China...

 To cut corners, many investors have been misadvised by other companies to have separate registered and operational addresses (i.e. the company first registers on the outskirts of a city and operate in the downtown). This set-up is not legall...

Q&A

What is the difference between transferring to a new tax district as opposed to ...

What is the difference between transferring to a new tax district as opposed to ...

No tax officer wants to lose your company’s revenue by letting you relocate to another district and you should expect resistance in conducting the processes for tax closing. This resistance will crop up during the tax audit, which will s...

Q&A

What are the advantages in closing an old company in China and starting from scr...

What are the advantages in closing an old company in China and starting from scr...

To avoid the time lag involved in transferring a company to a new tax district, another relocation option is closing the old WFOE and establishing an entirely new WFOE. This “default” option has the following advantages: 1.&nbs...

Q&A

What are the disadvantages of closing an old company in China and starting from ...

What are the disadvantages of closing an old company in China and starting from ...

The disadvantages of closing an old company in China and starting from scratch are: Larger Capital Needs: a larger amount of capital may be required than in a transfer between tax districts due to registered capital requirements in the ove...

Q&A

What is involved when establishing a new Wholly Foreign-Owned Enterprise (WFOE) ...

What is involved when establishing a new Wholly Foreign-Owned Enterprise (WFOE) ...

WFOE establishment involves acquiring a business license, then registering with all government bureaus and opening bank accounts. The WFOE establishment process has small variations based on the type of WFOE being established. For example, manufactu...

Q&A

What are the processes of liquidating the old Wholly Foreign-Owned Enterprise (W...

What are the processes of liquidating the old Wholly Foreign-Owned Enterprise (W...

The processes of liquidating the old WFOE in China are: Submit Termination application for approval;  Carry out liquidation obligations;  Deregister with all other relevant authorities.

Q&A

What are the processes of liquidating the old WFOE in China in detail?

What are the processes of liquidating the old WFOE in China in detail?

The processes of liquidating the old WFOE in China are: Submit termination application for approval: to initiate the liquidation process, the WFOE should apply for the termination of the WFOE to the original approval authority; upon issuan...

Q&A

What is a branch office in China?

What is a branch office in China?

A branch office is essentially an office of a wholly foreign-owned enterprise located somewhere other than the foreign-owned enterprise’s main office location. Branches are easier to set up and be maintained, but limited in many ways, such a...

Q&A

What are the alternatives to setting up another WFOE in China?

What are the alternatives to setting up another WFOE in China?

Foreign investors with an existing China WFOE that are willing to establish a presence in another destination, be it expansion or relocation, may wish to consider establishing a branch office, or another popular expansion option is the “conv...

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