Company Name: Guangzhou *** Trading Co., Ltd.
Investment way: wholly foreign-owned enterprise (WFOE)
Business scope：Wholesales including related things, parts and fittings; act as agent for commission (exclude auction), Import and Export of above goods, other relevant business (operation depending on licenses if involved in administrative permission)
Registered capital: According to the Chinese policy, the Min. registered capital is RMB 500,000 for Foreign Invested Commerce Enterprise (including import and export).
But according to the current requirement for the FICE to apply for regular VAT qualification, at least RMB 1,000,000 registered capital should be paid and the business license should be renewed, so we suggest the lowest registered capital is RMB 1,000,000.
(But some of the district, such like Haizhu District would require RMB 1,500,000 to set up a Foreign Invested Commerce Enterprise)
Duration of Business: No more than 30 years
Management Structure：One Legal Person，One Executive Director (at least 3 persons needed if set up a board)，One Supervisor (The Legal Person and the Executive Director should be the same person, but the Supervisor should be another one ).
Business office: at least 50 Square Meters
Major Tax:
1. Circulation Tax
A. General taxpayer（Value Added Tax）
To compute the VAT payable, the general taxpayers need to separately calculate the output tax and the input tax for the current period. Then the difference between the output tax and the input tax shall be the actual amount of VAT payable.
The formula for computing the tax payable is as follows:
Tax payable = Output tax payable for the current period - Input tax for the current period
Output tax payable = Sales volume in the current period × Applicable tax rate （17%）
B. Small scale taxpayers
Prior to 2009, small-scale taxpayers are taxed on the basis of the revenue derived from sales of goods or provision of taxable services by applying proper rates (4% for commercial sector, and 6% for other sectors).
Effective from 1 January 2009, the small scale taxpayers are taxed at 3%.
The computing formula is:
Tax payable = Sales amount × Applicable rate（3%）
C. Importation
The imported goods are taxed on the basis of the composite assessable price by applying the applicable tax rate.
D. VAT refund for exporters
In case of 0% rate applicable to the exported goods, the exporters may apply to the tax authorities for the input tax refund on those goods exported. At present, the refund rates consist of 5%, 6%, 9%, 11%, 13% and 17%.
2. Income Tax
2. Income tax 25%, effective from 1 January 2008, Foreign Investment Enterprise and Foreign Enterprise Income tax was replaced by The Enterprise Income Tax of The People's Republic of China. The enterprise with Foreign Investment and Foreign Enterprise are treated same as a domestic enterprise.
Income tax payable= Taxable income × 25%
Company Registration
