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China is situated in the East Asia covering an area of approximately 9,600,000 square kilometres. It borders in the north by Russia, Mongolia; in the north-west by Kazakhstan; in the west by Tajikistan; in the south by Afghanistan, Pakistan, India, Vietnam, Nepal etc.; in the north-east by Korea.
With a population of 1.3 billion, China is the most populous nation in the world. The major cities are the capital Beijing, which is the political and cultural centre, and Shanghai, which is the largest industrial, commercial and financial centre. Other important cities are Guangzhou and Shenzhen in the South, Fuzhou on the coast opposite Taiwan and Tianjin near Beijing in the North.
In October 1949, the Communist Party leader Mao Zedong proclaimed the People's Republic of China on the mainland. The then ruling Guomindang fled to Taiwan and established a government-in-exile. At present China is governed by the Central Government headed by President Xi Jinping, who is also the General Secretary of the Communist Party.
Traditionally China is very much an agricultural society and inward looking. However since the United Nations recognised China in 1971, China has gradually come more and more out of its isolationist shell that resulted in Deng Xiaoping leading the way to economic reform by initiating the Open Door Policy to develop its economy. The Central Committee has recently strengthened the Open Door Policy in order to keep economic development on track. At present the Twelfth Five-Year plan (2011-2015) seeks to address rising inequality and create an environment for more sustainable growth by prioritizing more equitable wealth distribution, increased domestic consumption, and improved social infrastructure and social safety nets.
In July 1997, Hong Kong's status as a British colony came to an end when sovereignty over the territory successfully returned back to China. In line with Deng Xiaoping's "One Country, Two Systems", Hong Kong is allowed to retain its capitalist system and lifestyle for at least 50 years after the hand over.
The road and rail networks are best developed around the major cities, such as Shanghai, Beijing, Guangzhou, and Shenzhen. Modernization is arguably most striking in Shanghai which has developed a second international civil airport and has updated major parts of its infrastructure by completing several large bridges and elevated highways, as well as a great number of residential housing projects. Across the river from Shanghai's famous Bund area, a new financial and services centre, Pudong New Area, is developing rapidly.
The official language is Mandarin, which is widely spoken across the country. However, especially in Southern China many dialects are spoken, some of which are entirely different, most notably Cantonese which is the common dialect in Hong Kong.
Renminbi (RMB). US$1.00 equals approximately RMB6.30.
All foreign exchange is controlled under the Provisional Regulations for Exchange Control of the PRC of 1981, as modified in 1985.
Based on The Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment and The Law of the People's Republic of China on Enterprises Operated Exclusively with Foreign Capital.
China has recognised three forms of business organisations available to foreign investors in China: Joint Venture, Wholly Foreign-Owned Enterprise and Representative Office.
JV and/or WFOE:
Submission of relevant documents such as project proposal, report on feasibility study, joint venture contract if applicable and memorandum and articles of association. Once all documents submitted are in order, the relevant government authorities (MOFTEC) will issue a Certificate of Approval and Business Licence.
Submission of relevant application documents to the authorities to obtain a Certificate of Approval and Registration Certificate, as well as resident representative's certificate. Thereafter other registrations, such as company code, tax and customs need to be made with the respective authorities.
Cannot conduct import and export activities, unless has the import and export license.
A Chinese company has generally all the powers of a natural person.
Yes, must be maintained in P R China.
Approximately three months.
Any name that is identical or similar to an existing company.
Yes, by formal request to the MOFTEC.
official name shall be in Mandarin.
Bank, Building Society, Savings, Loans, Insurance, Assurance, Fund Management, Investment Fund, Trust, Chamber of Commerce, University, Municipal or their foreign language equivalents.
In English if applicable name "Limited" or "Ltd", "Company" and "Corporation".
Yes, prior to incorporation. If beneficial ownership changes, the registration authorities must be informed soon.
Depending on projects, type of incorporation and approval by the authorities. Some favourable policies may apply.
The taxes levied on the foreign investment enterprises are the same as on local enterprises.The corporate income tax rate is 25%. Depends on the business nature, there is value added tax or business tax levied. Some local government may offer preferential tax treatment to foreign investment enterprises.
China has double taxation treaties with a large number of countries.
All companies must prepare financial statement and keep the financial records to reflect the financial position of the company.
The minimum number of directors is one. If the company is going to form a Board of Directors, the minimum number of directors is three.
There is no statutory requirement for a company secretary.
The minimum number of shareholders for a JV is two whilst for a WFOE the minimum is one.
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