Chinese company (WOFE) vs Representative office

Register a company in Shanghai with FREE registration address at USD1500
2017年8月31日
China state government decided to reduce VAT (value added tax) and implement preferential tax policies to help companies to reduce 400 billion taxes in 2018
2018年3月29日
Chinese company (WOFE) vs Representative office  
   By Chris TIAN,  Laywer and Accoutant
Chinese company or WOFE REP. OFFICE
A.  Registration is relatively easy A. Registration process is relatively difficult
Just need passport (if this passport holder used it entered into China once  ), then can start the WOFE registration process Need to authenticate a lot documents by Chinese embassy. Also the company should be incorporated at least 2 years
or the business license authenticated by Chinese embassy The business license, authenticated by Chinese embassy
　 Bank reference letter,  authenticated by Chinese embassy
Article of association,  authenticated by Chinese embassy
Power of attorney regarding authorized signatory,  authenticated by Chinese embassy
Chief representative and representative appointment document, authenticated by Chinese embassy
B. Taxes is less than Rep. office B. Taxes is more than WOFE
Registered capital injection is tax free, which can pay most expenses, such as  salary, rent, fixed assets, office expenses, travelling expenses, entertainment expenses….. All expenses will be taxed around 6% as business tax, the expenses will include but not limited to salary, rent, fixed assets, office expenses, travelling expenses, entertainment expenses
Corporate income tax is payable if has profit,  the general rate is 25% on profit. Before December 31, 2017 If the annual profit is not more than CNY300,000, the actual rate is 10% ，  All expenses will be taxed around 3% as corporate income tax, the expenses will include but not limited to salary, rent, fixed assets, office expenses, travelling expenses, entertainment expenses
VAT if have business or trading (3% is for small taxpayer,  6% of consulting and 17% of trading for general tax ), so far if quarterly income is not more than CNY90,000, VAT is ZERO VAT if have business or trading (3% is for small taxpayer,  6% of consulting and 17% of trading for general tax )
Email: chris@ichinabiz.com                          Cell: 15800814467                                   Wechat: tianlaw