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Q&A

What are the requirements for annual compliance for private limited company in S...

What are the requirements for annual compliance for private limited company in S...

The first requirement is about annual general meeting, which must be held within 18 months upon the successful incorporation of the company, and thereafter the lapse of time may not be more than 15 months, unless the Company Registrar approves suc...

Q&A

What are the liabilities that are specifically applicable to legal representativ...

What are the liabilities that are specifically applicable to legal representativ...

The liabilities specifically applicable to legal representatives are found generally in: General Principles of the Civil Law of the People’s Republic of China; 2007 Enterprise Bankruptcy law; and Regulations of the PRC Concerning the Admin...

Q&A

What are the duties that are applicable to shareholders in a foreign-invested en...

What are the duties that are applicable to shareholders in a foreign-invested en...

The shareholders are those who contribute capital to the company. For a wholly-foreign owned enterprise, shareholders are the supreme authority. The shareholders have the power to exercise such functions and powers, as below: Decide on the operati...

Q&A

What are the liabilities that are applicable to senior officials of a foreign-in...

What are the liabilities that are applicable to senior officials of a foreign-in...

The liabilities are divided into three different categories: Liability for criminal offenses Liability for liquidation Liability to the company Liability for criminal offenses will arise when a breach of company is so sev...

Q&A

How are internal control and internal audit defined in China?

How are internal control and internal audit defined in China?

Internal control is a process designated to provide assurance that the company is: Effectively and efficiently operating; Providing reliable financial reporting; Complying with applicable laws and regulations; and Safegua...

Q&A

How to find a permanent establishment for the foreign headquarter?

 How to find a permanent establishment for the foreign headquarter?

Under most double tax treaties between China and other countries, a permanent establishment will be constituted if: The Chinese entity receives services from foreign entities, be the service rendered in China or overseas; and The duration of the ...

Q&A

How is related parties defined in terms of management under Chinese law?

How is related parties defined in terms of management under Chinese law?

Related parties are found on the basis that, when the either of the following is appointed by another enterprise, or two enterprises with more than half of their senior management personnel or more than one executive director is appointed by a sam...

Q&A

Under what other conditions would parties be considered as related parties?

Under what other conditions would parties be considered as related parties?

If one of the following scenarios is met, then parties shall be considered as related parties: • When one enterprise’s production and operation activities are dependent on intangibles licensed from another enterprise (including indu...

Q&A

What aspect should be cautioned when using holding companies for Chinese or ASEA...

What aspect should be cautioned when using holding companies for Chinese or ASEA...

It must be noted that compliance with anti-avoidance tax rules from Hong Kong and Singapore is a must. The key to such compliance is to show that the holding company is a genuine business, i.e.: there must be economic substance to justify this tax...

Q&A

What are the tax incentives for Hong Kong and Singapore holding companies?

What are the tax incentives for Hong Kong and Singapore holding companies?

Since both Hong Kong and Singapore have double taxations agreements with China and ASEAN countries, the withholding tax rate for profit repatriation to these two locations would normally be reduced. An instance would be that the Chinese withholding t...

Q&A

Why are Hong Kong and Singapore holding companies attractive to foreign investor...

Why are Hong Kong and Singapore holding companies attractive to foreign investor...

In terms of ease of doing business, both locations take the stance of protecting investors and facilitating cross-border trade, by providing highly transparent business environment and favorable tax regime to businesses. Also, with English being the ...

Q&A

What would be an ideal location for offshore company to trade with India and wha...

What would be an ideal location for offshore company to trade with India and wha...

Singapore provides a procedurally easy and inexpensive option. Also, the tax rates are kept relatively low, comparing to other Asian countries and that it only taxes on profits made within Singapore, i.e.: if you make a profit in India, it is not sub...

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