Welcome to the first edition of the Hongda Business Services Roundup for the new month. The year is now beginning to really 'march' on and this week we've got a bunch of great posts lined up for you all that include:
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China visa application 101: Registering at a local SZ police station
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How to Build Trust When Doing Business in China
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Navigating the annual company audit in China: Prepare for these 5 tasks!
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China Both Frustrating, Rewarding for Investors
Let's get right into it
1) China visa application 101: Registering at a local SZ police station
For everyone planning to come to China and pass through Shenzhen for travel or work purposes, knowing which China visa type to process and the documents required to do so is one of the first steps to making their way over.
Fast forward to arriving in Shenzhen and the entire China visa application process nears its completion when the new arrival prepares to register at his/her local police station.
All foreign nationals are required by law to register their temporary residence with their local police station within 24 hours of their arrival. This applies to everyone from those staying in a hotel (the hotel usually handles the registration for guests) to those that are staying in accommodation outside of a hotel.
This step is a prerequisite to those looking to extend or apply for a new visa or a work permit/residence permit, making it very important for those looking to stay for an extended period of time to comply with the law. However, this is still something that scores of new arrivals tend to forget!
After a long flight, baggage pickup, customs and the excitement of exploring the city, we can fully understand why this may slip your mind, so we've decided to make things a little easier for you by providing you with a rundown of where you will need to register once you arrive, what documents you will need to take with you and more useful info here...
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2) How to Build Trust When Doing Business in China
image credit. Blueskyinnovations
Are you thinking about doing business in China?
Before you go, you’ll need to become familiar with Chinese cultural practices and how they relate to business.
Things are changing in the People’s Republic of China (PRC). The country is in the midst of a social, economic and cultural transition. They are leading toward a capitalist society, yet the Communist Party is still in power, which puts them in a precarious situation. As with any transition, confusion and contradictions can arise as the Chinese – and the world – learn how to navigate this new landscape.
What business rules apply when doing business in China?
It’s important to know that in spite of colossal changes, for the Chinese, traditional cultural drivers take precedence. This means adhering to Confucian values (filial piety, humaneness, and ritual consciousness) although with a modern twist to support new business ideas.
3) Navigating the annual company audit in China: Prepare for these 5 tasks!
China’s statutory filing requirements for financial and accounting reports are stipulated in a number of laws and related regulations. Companies are required to submit these reports to both the tax bureau and the company’s local branch of the Ministry of Finance. Submission occurs:
- Monthly/quarterly
- Yearly
Foreign companies may choose to submit monthly/quarterly reports to the tax bureau and should do so within 15 days of the end of the month or the quarter-end, and the annual filing report should be submitted within 4 months of the year-end.
These reports have to be submitted on time regardless of whether or not the company has any taxable income, or if the company is in fact exempt from tax thanks to being part of an incentive period. This being said, the deadlines for submission may be extended upon approval of the tax bureau in charge.
It is also important to note that these deadlines may differ due to the region of China that a company finds itself in, and as such companies should consult their local tax authority to clarify the dates.
There are a number of business entities that foreigners can choose to set up in China that include:
The annual filing requirements of a WFOE and JV are similar in practice, but they are more complicated than that of a RO. It is important that foreign enterprises conduct an annual audit and settle tax liabilities as this is a prerequisite to being able to repatriate profits back to their home country. This also helps enterprises to improve their financial reports in accordance with Chinese accounting standards and gives auditors the chance to find and fix any issues a company may have.
Here we will take a look at the 5 tasks foreign enterprises of a WFOE/JV need to prepare for and leave you with some important things you need to look out for when navigating each one...
Chinese leaders have been struggling to put a floor under the economy, even as a fresh plunge in its stock markets and yuan currency have stoked worries from Washington to Wellington that conditions may be rapidly deteriorating.
Fourth-quarter gr ..
Chinese leaders have been struggling to put a floor under the economy, even as a fresh plunge in its stock markets and yuan currency have stoked worries from Washington to Wellington that conditions may be rapidly deteriorating.
Fourth-quarter gr ..
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4) China Both Frustrating, Rewarding for Investors
China may be frustrating to enter, but for those with patience, persistence and willingness to adapt to varying conditions across the continental country, it end up being a game-changing market.
That was the consensus during a panel discussion on “Doing Business in China: Key Insights for the New Year” organized by the Confucius Institute at Georgia State and held in collaboration with the Association of Chinese Professionals Atlanta and the World Trade Center Atlanta.
“The opportunity is huge, but you must walk softly. It’s so unique that any willing entrepreneur should go with faith and learn from the experience,” said Ahmet Bozer, executive vice president of Coca-Cola Co.
Mr. Bozer likened entering China to the first time he took a company public and was presented with 16 pages of disclaimers listing everything that could go wrong.
That it for this week's edition of the Hongda Business Services Roundup! Please let us know about any of your thoughts regarding some of the topics we recapped this week in the comments below, or let us know about any other topics you'd like for us to cover.
See you all again next week same time, same place for another Hongda Business Services Roundup.
Stay on top of your China company's annual audit!
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