Company Secretary
China Company Secretary
Our company secretary solution helps your business align with the statutory and regulatory requirements.
Company Secretary Service in China
A company secretary plays a vital role in managing the administrative functions of a business, ensuring that all operations are aligned with applicable laws and regulations. In China, the State Administration for Industry and Commerce (SAIC) mandates that every registered company must appoint a company secretary to remain legally compliant. This role is essential for maintaining good corporate governance and avoiding regulatory pitfalls.
At FDI China, we provide corporate secretarial services to support businesses in meeting all compliance requirements. From administrative tasks to tax-related obligations, our service ensures your company stays fully aligned with local laws, so you can operate smoothly and confidently in the Chinese market.
Reduced costs
Ensured compliance
Bilingual secretary
1. Provisions
2. Tax & Bookkeeping
Our Working Process
1. Consultation & Proposal
We (can) advise you on the best solution for your business model and send you our comprehensive proposal.
2. Signing & Payment
After reviewing the proposal, we sign the service contract and receive your payment.
3. Preparing Documents
We send you an application form as well as the list of documents we need from your side.
FAQs
What taxes will I need to pay as a foreign company in China?
As a foreign company operating in China, you will be subject to several types of taxes, including but not limited to:
- Corporate Income Tax (CIT):
- Standard rate: 25% of taxable income.
- Small and low-profit enterprises may qualify for reduced rates, depending on eligibility.
- Value-Added Tax (VAT):
- Ranges from 6% to 13%, depending on the type of goods or services provided.
- Exported goods are generally subject to a zero rate or refund system, but conditions apply.
- Withholding Tax (WHT):
- Applies to income repatriated abroad, such as dividends, royalties, or interest payments.
- The standard WHT rate is 10%, but it can be reduced under applicable tax treaties.
- Personal Income Tax (PIT):
- You are responsible for withholding and paying employees’ personal income tax based on progressive tax brackets.
- Social Insurance Contributions:
- As an employer, you are required to contribute to employee social insurance and housing funds. The rates vary by region.
- Other Taxes:
- This may include property tax, stamp duty, and consumption tax, depending on your business activities.
When do I need to register for tax after forming a company in China?
The final step in the registration process of a company, after the bank account is issued, is to obtain a tax registration number at the local tax bureau. The company must begin filing for taxes asap after the tax registration number is issued, even if no transactions are occuring.
Can I file corporate taxes in China by myself?
No! Only accountants or accounting firms certified by the Chinese Institute of Certified Public Accountants (CICPA), can perform tax filing in China.
Do I need to do tax and accounting if I register a representative office in China?
Yes, even though representative offices are not permitted to generate profit, they are required to submit monthly tax and accounting reports with salaries and expenses.
Do I need file tax reports if my company is not generating any profit?
Yes, even if the company is new and has no transactions, the tax and accounting report must be submitted to the government.
Are there any restrictions on repatriating profits back to my home country?
Yes, there are restrictions and procedures to follow when repatriating profits:
Profit Repatriation Rules:
- Only profits earned and declared after paying Corporate Income Tax (CIT) and other local taxes can be repatriated.
- Proof of tax payment and an audit report are typically required.
Withholding Tax (WHT):
- A 10% withholding tax applies to dividends distributed to foreign shareholders. This rate may be reduced under a Double Taxation Avoidance Agreement (DTA).
Restrictions on Capital Repatriation:
- Funds from registered capital or unpaid share capital cannot typically be repatriated. They must remain within the company for operational purposes.
Are there any differences in tax obligations for different types of entities (WFOE, JV, Representative Office)
Yes, the type of legal entity you establish in China affects your tax obligations. Here’s an overview of the differences:
Wholly Foreign-Owned Enterprise (WFOE)
Corporate Income Tax (CIT):
- Standard rate: 25% of taxable income.
Value-Added Tax (VAT):
- Rates vary from 6% (services) to 13% (goods).
Joint Venture (JV)
Same taxes as a WFOE
Representative Office
Deemed Corporate Income Tax (CIT):
- ROs are taxed on a deemed profit basis since they cannot generate revenue.
- The tax rate is calculated as 25% of the deemed profit, which is often set as a percentage (typically 15%-30%) of total expenses.
Value-Added Tax (VAT):
- ROs are exempt from VAT as they do not engage in commercial activities.