China business consulting, advice and support for
International SMEs clients establishing and growing
their business in
according to their business
Our services include forming Wholly-Foreign Owned
Enterprises, (“WFOE”), Representative Office (“RO”) and
Joint Venture (“JV”) companies in China.
We do this at both an organizational and individual
Our service is an alternative for expanding
do not have representation or adequate resources in
and we become their back-ups.
Companies with a China presence use us to provide
outside perspective and objective opinions on
specific business issues and topics.
One has to understand that setting up a company in China
is not that simple, especially if you are not familiar
with the Chinese rules and regulations, which can be
different in different provinces. Our staff members will
assist you to set up company in China in the most cost
effective way and we will help you in every step all the
way to be successful in establishing your business in
There are 3 types of business organisations that foreign
investors can establish and they are WFOE, RO and JV.
The requirements on registered capital, documentation
and time for approval by the government may differ from
one province to another and from one industry to another
too. Therefore, we are here to provide you with our
professional services to ensure that your intended
company will be formed within the time frame.
China Accounting Services
We assist foreign investors to set up a proper
accounting system to ensure ease of transaction
processing, proper book-keeping and hassle free annual
audit. We serve by formulating and implementing
accounting system and processing that allow financial
reporting, including IFRS compliance, for management
reporting and controlling purposes
. This includes
computing various financial matrixes for management to
assess the performance of their business.
Foreign invested enterprises shall file their accounting
statements and provisional income tax returns within 15
days from the end of each quarter with the local tax
authorities. In order to meet such an obligation, you
can outsource to us the daily finanice administration
such as tax filing and payments, book-keeping and
financial statement generation, while you can focus on
your core business activities. We can also assist you
with Capital Verification and other tax compliance
obligations in China.
International Investors in China
Since China’s accession to WTO and the introduction of
Close Economic Partnership Arrangement (“CEPA”) with
Hong Kong and Macau Special Administration Regions, many
areas are opened to the two regions and gradually to
foreign investors. As part of the Chinese government
policy of encouraging foreign investment in China, there
are various tax incentives offered to foreign investors.
To take advantage of these tax incentives, it requires
foreign investors to go through complicated procedures
and othen dealing with more than one group of
authorities, including the Ministry of Commerce, the
State Administration of Taxation, local tax bureaus, the
customs authorities, and the Ministry of Science and
Examples of tax incentives include:
15% tax rate for high and new technology enterprises;
20% tax rate for small-scale and low profit enterprises;
Bonus deduction for research and development;
VAT and duty exemptions for imported equipments;
VAT refunds for exported goods;
Business tax exemptions for technology transfer.
Alpha Partners will assist you to assess your
eligibility for those stipulated tax incentives and help
secure your privelege to those incentives, and to assist
you to structure your operation and transaction to
maximise your tax incentives which are more beneficial
Investment Holding Structure
It is important for you to choose the location of an
overseas holding company for holding the investment in
the Chinese company because it can have a significant
impact on the tax liability in China. Chinese law allows
for the ownership of a Foreign Investment Enterprise
located in China to be held by a special pupose vehicle
(“SPV”) outside of China, whether in a tax treaty
country or in a tax advantageous jurisdiction such as
Hong Kong or the British Virgin Islands. Our service
will include working with clients to carefully review
all possible locations in order to minimise both the
China and worldwide tax burden.
Please feel free to contact us
any of your China Business issues.