1. How start your business in China ---by Zhao Qin

2. About the speaker Zhao Qin MSc IB student CERAM 2003-2004 Department Head Metro 2004-2005 Department Mgr. Changhai 2005-2006 Vice-President Changhai 2006-Now

3. Classifacation of Chinese Enterprise State Enterprise Private Enterprise Joint Venture

4. Classifacation of Chinese Company Limited Company 2 to 50 investors Registered capital: 0.03M RMB or more Stock Limited Company 5 to infinite investors Registered capital: 5M RMB or more Individual enterprise single investor Registered capital: 1 RMB

5. Procedure of setting up your company Entitle Capital verification Compose articles of corporation Register company in industrial and commercial bureau Apply Organization Code Certification from supervision bureau

6. (continue) Certificates from other function department Open primary account of your company Apply Tax Registration Certificate from tax bureau Apply your company’s invoice Start your business

7. How entitle your company 江西省 昌海 糖酒食品 有限公司 Region name industry Ltd. Co. Chinese only “China” “National” “Intertional” state enterprise only No same name in the same industry and region

8. Procedure of verifying capital Get “Name Approval Certificate” from industrial and commercial bureau Open a temporary account of your company Enough money in the account Articles of your company Sharehoulder’s ID certificate Accountant office verify the capital

9. Which documents you need to register the company capital verification report articles of corporation rental contract Name Approval Certificate fill the sheets

10. make your seals offical seal contract seal business seal

11. Function of industrial and commercial bureau Company registration Advertising supervision Consumer right protection Brand registration Keep market order

12. Use of Organization Code ID number of the company tax, bank, social security, vehicle, custom

13. Function of supervision bureau standardisation goods’ bar code goods’ quality and quantity supervision

14. Which function departments you also need to contact? Sanitation bureau Bureau of Culture Commercial Commission Commission of Science Technology Education bureau

15. Primary account only one and required taxation supervision draw cash

16. Types of Chinese tax Turnover taxes Income taxes Resource taxes Taxes for special purposes Behaviour taxes Agricultural taxes Customs duties

17. Chinese taxation system State taxation office Local taxation bureau Financial department Custom department

18. VAT rates Coverage of collectionRates Exportation of goods (except otherwise stipulated by the State) 0% Agriculture, forestry, products of animal husbandry 13% Crude oil, mine salt and goods other than those listed above, and services of processing, repairs and replacement 17%

19. Consumption tax rates Taxable itemsTax rates Tobacco50% 40% 25% 25% 30% Alcoholic drinks and alcohol25% 15% 240 yuan per tonne 220 yuan per tonne 10% 5% Cosmetics30% Skin-care and hair-care products8% Precious jewellery, pearls, precious jade and stones5% 10% Firecrackers and Fireworks15% Gasoline0.2 yuan per litre 0.28 yuan per litre Diesel0.1 yuan per litre Motor Vehicle Tyres10% Motor-cycles10% Motor cars3%,5%,8%

20. Business tax rates Taxable itemsTax rates communications and transportation3% construction3% financial and insurance businesses8% culture and sports3% post and tele-communication3% entertainment5%-20% services5% transfer of intangible assets5% sales of immovable properties5%

21. Enterprise income taxes Normally, the amount of Enterprise Income Tax payable is computed on the basis of the taxable income and by applying the rate of 33%. Besides the statutory rate, two lower rates of 18% and 27% are designed for some less profitable enterprises.