China Business and Trade Company

If you're considering investing in China, it's important to strategically choose the right type of company structure. Currently, the most popular option is a commercial and trading company.

I. What are the benefits of registering a China trading company?

• Trade-type wholly foreign-owned enterprises (WFOEs) are permitted to engage in general trade, wholesale, retail, and franchising activities.
• They can conduct domestic procurement and sales, contract manufacturing, and import/export operations within China.
• These enterprises can issue 13% VAT special invoices, and input VAT can be deducted upon receiving corresponding invoices.
• Upon approval and within the scope of their registered business activities, they may also issue 6% service fee invoices.
• If certain regulatory conditions are met, they may qualify for export tax rebates on eligible exported goods.

II. Notice Foreign investors should pay attention to the establishment of trading companies

• The registered capital requirements for foreign investors in China have been relaxed, with no strict deadline for capital injection. A minimum of 500,000 RMB is recommended.
• When registering a Chinese commercial trading company, it's important to verify that the address is eligible for company registration, is not sublet, and is not already used for multiple registrations.
• Note that when submitting investor documents for a mainland trading company, certain documents require official certification and have a validity period. If they expire or are overlooked, re-certification will be necessary.
• A newly registered company in China does not automatically have import and export rights. To handle imports and exports independently, a trading company must apply separately for import/export qualifications. It's also recommended to obtain general taxpayer status to enable value-added tax (VAT) deductions.
• If a Chinese trading company deals with regulated products like food or alcohol, it must obtain the appropriate licenses or permits before it can legally sell them.

★ Full article: Click→ China Business and Trade Company

Inter Area

TEL:+886-4-2320-2793
Website:  https://interareapsp.com/en/

Email: interarea@interareapsp.com

Line : inter-area   |   WeChat : inter_area