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Author	Topic: Foreign Managed Chinese Registered Company
Wanchai	posted 31 October 2009 11:42 AM Hi, I read somewhere about the possibility of opening up a Chinese Registered Company (in combination with your offshore company) as a foreigner. This business model might sound strange but I read about several foreign companies in mainland China that use this model. The Company needs to be registered through a Chinese person (for instance a spouse or other "trusted" person); this person than can assign you as a CEO and you can be, by extra contract, even the owner of this "Chinese" company. The positive things are that you act like a Chinese company, this way you will have several benefits because you fall under the Chinese company law. (No restrictions that foreign companies face, no need to go through FESCO for human resources, no grade A office required, etc.) The offshore Company is hereby only used to profit from the lower company tax and to be able to get assets (money) out of mainland China through service contracts that the Chinese company has with this offshore company . Is anybody doing this here and could maybe give me more information's? Thank you very much, Wan
Eric	posted 17 November 2009 06:00 PM IT works actually like this: (1) form a HK limited company = H Ltd; (2) H Ltd shareholder is Mr A; (3) H Ltd as investor to China and as sole shareholder of a China company = C Ltd; (4) C Ltd is a China company - called WFOE (wholly foreign owned company); (5) C Ltd business licence and minimum share capital depends on your business plan and operation; (6) C Ltd is a China company - can issue China invoice, export, import, hire staff in China etc.; (7) can use office - not restricted to grade A office; (8) can remit consulting fee to H Ltd - if there is contract - and pay withholding tax in China; (9) can remit dividend to H Ltd - need to pay withholding tax in China; (10) Mr A can be the legal representative of C Ltd and can have work permit and stay permit in China - need to pay China tax; This is most common model - enjoying flexibility and tax benefit - because using HK as investor to China - lower withholding tax. If need further info, pls visit www.AsiaBS.com .

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