Key commercial and taxation factors that are relevant on setting up a business in China

Written and Produced by Shanghai CPA Firm

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Overview

The People’s Republic of China is situated in eastern Asia on the western shore of the Pacific Ocean, with an area of 9.6 million square kilometres. As the world’s most populous country, China has a population exceeding 1.2 billion, which makes up 22% of the world total. The official language is Mandarin.

With the entry into WTO in 2001, China’s economy is developing increasingly fast. Many overseas companies find China a good country to invest in. The strongest labour force is in East China. The currency for China is RMB. A floating exchange rate is used for exchange controls.

China’s transport infrastructure is comparatively convenient in the east area. For business travel, China International Airlines or China Oriental Airlines are good choices. Goods can be transported by road, rail, inland waterway, pipeline, etc. The transport infrastructure in west China is in infant stage, but with China’s ‘Go West’ policy taking centre stage, investment in the interior provinces is increasing. As a result, the transport infrastructure is developing fast.

This document describes some of the key commercial and taxation factors that are relevant on setting up a business in China. The document includes information on:

  • Choice of Legal Form
  • Audit Requirements
  • Taxation
  • Allowances
  • Teamwork
  • Employment
  • Withholding Taxes
  • Miscellaneous

Country Breakdown

1.4

Billion

Population

¥

Renminbi

Currency

$ 11.2

Trillion

GDP

9.597

Million

km2