China's Company Law governs the establishment, operation, and dissolution of companies within the country. China offers various types of business entities under its company law, each with its own characteristics and requirements. Below is an overview of China's company law, the types of business entities, the procedure for incorporation, applicable forms, required documents, registration fees, and an overview of taxation under China's tax laws.

Types of Business Entities under China's Company Law:

1. Wholly Foreign-Owned Enterprise (WFOE): A WFOE is a limited liability company entirely owned by foreign investors. It can engage in various business activities within its approved scope.
2. Joint Venture (JV): A JV involves collaboration between foreign investors and Chinese partners. There are two types: equity joint ventures (EJV) and cooperative joint ventures (CJV).
3. Representative Office (RO): An RO is not a separate legal entity but serves as a liaison office for foreign companies to engage in market research and promotional activities.
4. Limited Liability Company (LLC): Limited liability companies can be established by domestic and foreign investors. The liability of the members is limited to their capital contributions.
5. Sole Proprietorship: Sole proprietorships are businesses owned by an individual. They are suitable for small-scale operations.

Procedure for Incorporation of a Company in China:

The procedure for incorporating a company in China involves several steps:

1. Name Reservation: Choose a unique name for your company and submit it for approval to the local Administration for Industry and Commerce (AIC).
2. Investment Approval: Depending on the type of company, you may need to obtain approval from the relevant authorities, such as the Ministry of Commerce (MOFCOM) or local authorities.
3. Capital Contribution: Determine the registered capital required for your company. This can be in the form of cash, assets, or intellectual property.
4. Draft Articles of Association: Prepare the articles of association, which outline the company's structure, management, and operations.
5. Registration with AIC: Submit the required documents, including the articles of association, to the local AIC office for company registration.
6. Business License: Once approved, you will receive a business license, which allows you to legally operate in China.

Applicable Forms for Registration:

The specific forms required for registration may vary depending on the type and location of your company. However, common forms and documents may include:

• Application for Name Reservation
• Application for Business License
• Articles of Association
• Proof of capital contribution
• Identification documents of shareholders or partners
• Lease agreement for office space (if applicable)

Registration Fees:

The registration fees vary based on factors such as the location, type of company, and registered capital. Fees may also include notary fees, translation fees, and other administrative charges.

Taxation under China Tax Laws:

China's tax system includes various taxes applicable to businesses, such as:

1. Corporate Income Tax (CIT): CIT is levied on a company's taxable income at a standard rate of 25%. However, preferential tax rates may apply to certain qualified enterprises.
2. Value Added Tax (VAT): VAT applies to the sale of goods and services in China. There are different VAT rates depending on the type of goods or services, with standard rates ranging from 6% to 13%.
3. Business Tax (BT): BT applies to certain types of services, including transportation, construction, and entertainment. It is gradually being replaced by VAT.
4. Individual Income Tax (IIT): IIT applies to income earned by individuals. Companies are responsible for withholding and remitting IIT on behalf of their employees.
5. Customs Duties: Customs duties are imposed on the import and export of goods.
6. Other Taxes: There are other taxes and fees, such as consumption tax, land use tax, and stamp duty.

Taxation in China can be complex, and tax laws and regulations are subject to change. Egstin will help you out for the specific requirements and regulations relevant to your business in China.