PRC company type
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With a great advantage of business environment in Hong Kong, the Company incorporated in Hong Kong can be a strategic foothold to enter a business in PRC. Depending on your business activities or situation, your investment into PRC had better take an indirect ways through the Company (with a virtual office) to apply for the PRC business registration on your parent’s company behalf. Over years, several beneficial effects have been experienced with our clients. For
example
- Keeps your PRC venture risk one-step removed from your parent company.
- Tax benefits :
The Company can have a benefit to apply less withholding tax from a royalty, dividend, patent fee compared with the parents company. Hong Kong has entered into DTAs (double taxation agreement) with PRC if the Company can be involved in a transit trade between the company in china and other countries, the Company can reserve more profits into the Company rather than into the company in PRC, the Company can save tax because taxes from offshore-profit is not imposed in Hong Kong. This may be useful in re-investment at a minimal tax exposure. - Convenient banking facilities in Hong Kong
Hong Kong has straightforward banking facilities without money transfer control. This eases fund raising for any client's venture financing in PRC. This also minimizes a foreign-exchange loss in using same currency as RMB - Ease of application : As Holding company corporate documentation must be translated into Chinese for application purposes, it makes sense to use the Company whose documentation exists in bi-lingual format rather than spend money on expensive translations.
With various experience to incorporate companies to set up a business in PRC,
ANYHKG will provide most optimum business model with set-up a company in PRC.
PRC Company type
Major Company Forms in PRC
Foreign investors can invest in PRC through legal or non-legal entities. Legal entities that can be set up by foreign investors generally include wholly foreign-owned enterprises (WFOEs), equity joint ventures (EJVs), co-operative joint ventures (CJVs) and joint stock companies (JSCs). Non-legal entities include representative offices (ROs) and branches, as well as certain CJVs. The partnership also is available as an investment vehicle.
