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AbacusHKCPA - Company Formation and Company Registration by Hong Kong Accountants (HKCPA)

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Company Formation

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China Company

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Representative Office

China government decree new "RO regulations for foreign enterprises" will be effect on March - 1, 2011. And main different between current and new regulation is here.

For Representative Office (RO) setup, mother company needs to be at least 2 years old.
And, below cost and fee are examples and applicable only to big cities like Shanghai (SH) and Beijing (BJ). Please contact us for further detail. Thank You.
Tax Implications
Although a RO is not to conduct business, it attracts tax on
  • Chief Representative, general representative and local staff's Individual Income Tax (IIT) on monthly income;
  • Business Tax (BT) base on quarterly operational expenses;
  • Income Tax (IT) base on quarterly operational expenses;
  • Additional Tax base on quarterly Business Tax (BT).
Rough elaboration on BT & IT payable
  • Business Tax = Deemed Turnover x 5%
    Total Expenses = Deemed Turnover x 80%
    Deemed Turnover = Total Expenses / 80%
    Business Tax = (Total Expenses / 80%) x 5%
    Income Tax = Deemed Profit x 25%
    Deemed Profit = Deemed Turnover x 15%
    Income Tax = (Total Expenses / 80%) x 15% x 25%
    Business Tax + Income Tax = (Total Expenses / 80%) x (5% + 15% x 25%)
    Business Tax + Income Tax = (Total Expenses / 80%) x 8.75%
    Therefore, Business Tax + Income Tax = Total Expenses x 11%
Additional Tax
  1. River Tax = Business Tax x 1%
    Urban Maintenance and Construction Tax = Business Tax x 7%
    Education Surcharge = Business Tax x 3%
     
  Important
  • These tax rate are examples and applicable only to Shanghai;
  • For other regional, please contact us for detail.
  
     
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Service in Hong Kong
  1. Accounting, Audit & Taxation
  2. Document Certification
  3. Bank Account Opening
  4. Company Secretary
  5. Registered Address
  6. Nominee Shareholders & Directors
  7. Virtual Office
  8. Trading Support
  9. Trademark Registration
  10. Online Credit Card Payment Service

Service in China
  1. Accounting Service
  2. Trading and Logistic
  3. Other Service
   Company Formation
  1. Hong Kong
    1. Limited Company Formation
    2. Unlimited Company Formation

  2. China
    1. WFOE (Wholly Foreign Owned Enterprise)
    2. In Free Trade Zone  |  Consultancy  |  Restaurant
      IT  |  Manufacturing  |  Wholesaler  |  Retailer
    3. JV (Joint Venture)
    4. RO (Representative Office)

  3. Offshore
    1. BVI (British Virgin Islands)
    2. Samoa
    3. Seychelles
    4. Marshall Islands
  
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AbacusHKCPA - Certified Public Accountants base in Hong Kong (HK) - ACCA, HKICPA, providing services of

company formation, financial management, business advisory, tax planning, auditing and accounting.