(1) Registration Service Fees
Our fees for handling the registration of a FICE in Qianhai, Shenzhen are USD2,000. In particular, our fees cover the following services:
(1) Preparation of registration application documents;(2) Performing name availability search;(3) Application for approval of name;(4) Application for registered address with Qianhai Administration Bureau;(5) Application for MOFCOM registration;(6) Application for business licence;(7) Carving of company chops and personal chop of the legal representative;(8) Setting up a basic RMB bank account;(9) Handling foreign exchange registration;(10) Setting up a capital account.
In any case where the products to be traded by the FICE requires special permit or licence, we may need to revise our fees accordingly.
(2) Official Filing Fees
Our service fees stated in Section 1 (1) do not cover any official filing fees. The estimated official filing fees shall be around USD400. The official filing fees will be billed with supporting official receipts.
(3) Legalisation Costs
Our fees stated above also do not cover the legalization of the identity documents of the shareholder/member of the Shenzhen FICE. Kaizen is able to arrange the legalisation of identity documents for company or individual registered or resided in Hong Kong, Singapore, Taiwan, British Virgin Islands, Cayman Islands and Bermuda and a few other countries. Fees for legalisation will be quoted upon request.
(4) Internet Banking Facility
Our service fees stated in Section 1 (1) cover the setting up of a bank account for the new FICE, however, it does not cover the application of internet banking facility. Should you decide to engage us for the above service, we will charge a fee of USD300.
(5) Additional Foreign Currency Account
Our service fees stated in Section 1 (1) cover the setting up of a basic RMB bank account and a capital account for the new WFOE. However, it does not cover the setting up of any additional accounts. If the WFOE will receive foreign currency payment from overseas, then you must open a foreign currency general settlement account accordingly. Should you decide to engage us to set up an additional account, we will charge a fee of USD300.
(6) Translation Costs
Our service fees stated in Section 1 (1) do not cover translation costs for translating the documents prepared by you from English to Chinese or translation of registration documents from Chinese to English. If so required, we will charge an extra amount of USD55 per page of A4 size paper for the translation services.
(7) Foreign Trade Operator Registration Fees
A FICE is required to complete the following Foreign Trade Operator Registration procedures before it is allowed to conduct import and export business in its own name. Our scope of services:(a) Handling customs registration procedures;(b) Filing Foreign Trade Operator Registration Form with the Commerce Bureau;(c) Handling E-Port registration procedures;(d) Handling registration with Administration Bureau for foreign exchange;(e) Handling inspection and quarantine registration.
The whole procedures will be completed within one month if everything runs smoothly.
Our fees for the above services are USD800, which do not cover government charges estimated to be around USD250.
(8) VAT General Taxpayer Qualification Application Fees
A FICE is considered as a VAT small scale taxpayer when it is incorporated. If you want to be treated as a VAT general taxpayer, then you shall apply for VAT general taxpayer qualification accordingly. Kaizen could also help you to apply for such qualification. Our fees for handling the application for VAT General Taxpayer Qualification are USD550.
Upon receipt of your order, we will issue an invoice to you for your settlement. We require full payment in advance.
If China or Taiwan official tax invoice is required, Value-Added Tax or Business Tax at the prevailing rate in the respective jurisdiction will be charged.
The minimum requirements of a FICE in Shenzhen, China are as follows:• One shareholder, one director, one general manger, one legal representative, one supervisor and one finance controller• Shareholder can be natural person or corporation• Director must be a natural person with no restriction on nationality• General manager must be a natural person with no restriction on nationality• Legal representative must be a natural person with no restriction on nationality• Legal representative shall be served by chairman of the board (if board of directors is set up), or executive director (if it is sole director), or general manager• Natural person shareholder can be appointed as director• Supervisor must be a natural person with no restriction on nationality, however, director or general manager cannot serve as supervisor at the same time• Finance controller must be a natural person with no restriction on nationality, however, legal representative cannot serve as finance controller at the same time
The following materials are required for the registration of a FICE in Qianhai, Shenzhen:
(1) Name of the company to be registered
The name of company to be registered in Shenzhen must follow the format “Business Name + (Shenzhen) + Principal Business Activity + Limited” or “Business Name + Principal Business Activity + (Shenzhen) + Limited” or “Shenzhen + Business Name + Principal Business Activity + Limited”. For example, “Kaizen (Shenzhen) Trading Limited”, “Kaizen Trading (Shenzhen) Limited” or “Shenzhen Kaizen Trading Limited”.
The name of the company must be in Chinese. The English name cannot be registered. Please provide the proposed name and at least 2 alternatives.
(2) Tenancy Agreement
One set of original Tenancy Agreement and Leasing Certificate of the office premise to be used by the proposed FICE.
(3) Particulars of the Shareholder
If the shareholder of the Shenzhen FICE is another company, please provide the particulars of that company, including the principal business activities, business address, contact numbers and name and nationality of its managing director.
(4) Legalised identification documents of the shareholder
One set of legalised identity documents of the foreign shareholder/members of the proposed FICE. If the shareholder is a corporation, the identity documents required to be legalised are its incorporation documents. In the case the shareholder is an individual, the identity document required to be legalised is his/her passport (for foreigner) or mainland travel permit (for Hong Kong, Macau and Taiwan resident). The investor’s identity or incorporation document shall be legalised by the Chinese Embassy or Consulate in the country where the investor is resided or registered.
(5) Shareholding Structure and Ultimate Beneficiary Owner
A shareholding structure and particulars of the ultimate beneficiary owner of the FICE.
(6) Legal Representative
A photocopy of the identification document (i.e. passport for foreigner or identity card for Chinese national), email address, China mobile number and full residential address of the legal representative.
(7) Director(s)
A photocopy of the identification document (i.e. passport for foreigner or identity card for Chinese national), email address, China mobile number and full residential address in respect of each director.
(8) Supervisor, Finance Controller and General Manager
A photocopy of the identification document (i.e. passport for foreigner or identity card for Chinese national), email address, China mobile number and full residential address of the supervisor, finance controller and the (general) manager.
(9) Amount of Investment/Registered Capital of the Shenzhen Company
The total amount of investment of the FICE, including:(a) the amount of registered capital.;(b) method and time limit of contribution of capital.
Note :The minimum registered capital required in Qianhai is RMB5 million. However, the above minimum capital requirement has been abolished for a FICE with Hong Kong investment. The investors from Hong Kong SAR may decide on the capital amount, method and deadline for capital contributions at its own discretion
(10) Scope of Business
A summary of the scope of business and the scale of business of the proposed FICE, including its business model, locations of suppliers and customers, products to be imported, exported or distributed.
(11) Particulars of Preferred Banker
Please provide the name of preferred bank and the designated branch at which the bank accounts of the Shenzhen FICE is to be established.
Please note the legal representative of the FICE is required to visit Shenzhen to open the bank account. The bank officers will go to your office to conduct a site inspection when you submit the application to them.
(1) Preliminary
(a) Lease of Office Space
Firstly, the investor will have to enter into a tenancy agreement in relation to the office space to be used by the FICE for a term of not less than 12 months. The office must be located in a commercial building.
(b) Legalisation of Identity Documents of the Shareholder
The investor is also required to arrange to have the identity documents of the shareholder legalized by the Chinese Embassy or Consulate in the country where the shareholder is registered/resided.
(c) Other Documentation
The investor at the same time needs to prepare other documents, such as photocopies of the passport / identity card / China’s mainland travel permit of the director, supervisor, legal representative, finance controller and (general) manager.
(2) Application for Registration of FICE
(a) Name Search and Reservation
The registration process of a FICE starts with name availability search. Kaizen will perform a name availability search with Shenzhen Market Supervision Administration (MSA). If the search indicates that the preferred company name is available for registration, Kaizen then apply for the reservation of the preferred name with Shenzhen MSA. This is called "Name Pre-registration" in China.
(b) Application for registered address with Qianhai Administration Bureau
Upon receipt of the approval for reservation of the preferred name of the FICE, Kaizen will apply for registered address with Qianhai Administration Bureau as required.
(c) Registration Record Filing with MOFCOM
Upon completion of the registered address application, Kaizen will then arrange the registration record filing with MOFCOM. MOFCOM local branch will usually issue a registration record receipt within 3-6 working days after receiving all required documentation.
(d) Registration for Business License
Upon receipt of registration record receipt, Kaizen will then apply for a Business Licence for the FICE with Shenzhen MSA. It will usually issue the Business Licence within 3-5 working days after receiving all the required documentation. Once the business license is issued, the FICE is deemed to be a legal person duly organised and existing under PRC law and will have full operational rights to operate its business in China within its scope.
(3) Post Registration Stage
(a) Carving of Company Seal and Chops
Application for Approval for making of Office Stamp (Office Seal) from the Public Security Bureau and arrange the carving the company seal and chops.
Please note the original identity certificate of the legal representative of the FICE is required to be provided when applying for the carving of seals.
(b) Foreign Exchange Registration
Application for registration with the Administration Bureau for Foreign Exchange.
(c) Opening of Bank Account
Opening of one capital account and one RMB basic account with the bank selected by client.
(4) Extra Procedures for FICE
(a) Foreign Trade Operator Registration
The FICE is required to complete Foreign Trade Operator Registration procedures before it can conduct import and export business in its own name.
(b) VAT General Taxpayer Qualification
A FICE is considered as a VAT small scale taxpayer when it is incorporated. If you want to be treated as a VAT general taxpayer, then you shall apply for VAT general taxpayer qualification accordingly.
After the FICE is officially registered, it will obtain the following certificates and documents to prove its legal existence and to carry out its daily operation.
(1) Business Licence (Original, Duplicate)(2) FICE Registration Record Receipt(3) Bank Account Opening Permit and Other Bank Stuffs(4) Foreign Exchange Registration Permit(5) Company Seal, Financial Seal, Legal Representative Seal, Customs Seal and Fapiao Seal(6) Foreign trade operator registration related certificates and cards.
It is estimated that the whole registration process would take around 12 to 18 weeks, subject to the schedule of the investor and also the approval by the various registration authorities in Qianhai, Shenzhen. The table below shows the estimated time frame for each of the steps for the registration.
Step
Description
Who is Responsible
Working Days
Preliminary
1
Legalisation of identity documents of the investor
Investor
Investor’s schedule
2
Tenancy agreement (for the office to be used by the FICE)
Investor
Investor’s schedule
3
Other documents
Investor
Investor’s schedule
Application for Registration
4
Perform name availability search
Kaizen
1
5
Name pre-registration
Kaizen
1
6
Application for registered address with Qianhai Administration Bureau
Kaizen
3
7
MOFCOM Registration and Record
Kaizen
3-6
8
Application for FICE business licence
Kaizen
3-5
Post Registration Procedures
9
Application for approval and carving of company seals
Kaizen
2
10
Opening of RMB basic account
Kaizen
20
11
Perform foreign exchange registration
Kaizen
10
12
Opening of capital account
Kaizen
10
Around
12-18 weeks
Additional Registration Procedures
13
Foreign trade operator registration
Kaizen
20
14
Application for VAT general taxpayer qualification
Kaizen
5
Immediately after a FICE is officially registered in Shenzhen, it is required to comply with various monthly, quarterly and annually filing and reporting requirements. These filing requirements include monthly tax filing, filing of annual audit report, which has to be issued and signed off by a local CPA firm, filing of annual tax reporting to the Shenzhen State Administration of Taxation and filing of annual reports to the competent government authorities etc. In any case if any of these annual compliances are not handled in a timely manner, the FICE may subject to penalties or at the risk of getting their license suspended or cancelled by the MSA.
Kaizen is well equipped with experienced personnel and capable of providing all the services that your Shenzhen FICE may need, including but not limited to monthly book-keeping, preparation of tax computation and filing of various tax returns and also performing annual tax clearance and etc.
Provided the legal representative or finance controller of a FICE is a foreigner or Hong Kong/ Macau/Taiwan resident, then s/he is required to visit the local office of State Administration of Taxation (SAT) in person so as to enable the SAT to verify their travel document. This is what we called real-name certification with the tax bureau. Failure to complete the real-name certification will affect the company’s tax related matters, such as purchase of Fapiao and application for tax rebate, or in the worst scenario, may not be able to file tax returns, with the SAT.
Since the legal representative or finance controller is required to visit the SAT in person to perform the real-name certification, we would recommend that s/he should be accompanied by a local staff, so as to avoid any language or communication problems. If you want us to send our staff to go to the SAT with your foreign legal representative or finance controller, we can also arrange for it accordingly. Our fees for the foregoing service are USD250 (tax exclusive).
In accordance with PRC regulations on food safety, a company engaged in trading and distribution of food products must apply for a food business license before it is allowed to carry relevant business activities. Kaizen could also help you to apply for such license. Our fees for handling the application for food business license (for pre-package food) in Shenzhen are USD700. The time frame required is around 10-20 working days.
Schedule 1 - Summary of Costs for Registration of FICE in
Qianhai, Shenzhen
I. Registration of a FICE in
Qianhai, Shenzhen
|
Item |
Description |
Amount (USD) |
|
1 |
Service fees for Company Registration (Note 1) |
2,000 |
|
2 |
Official filing fees for Company Registration (Note 2) |
400 |
|
3 |
Disbursements |
80 |
|
4 |
Service fees internet banking facility application (Optional) |
300 |
|
5 |
Application for an additional foreign currency account (Optional) |
300 |
|
6 |
Legalization fees for the investor (Optional) |
TBC |
|
7 |
Translation fees (Optional) |
TBC |
|
TOTAL |
3,080 |
|
II. Additional Registration
Procedures
|
Item |
Description |
Amount USD |
|
1 |
Application for Foreign Trade Operator Registration |
800 |
|
2 |
Official filing/registration fees for Foreign Trade Operator Registration (estimated) |
250 |
|
3 |
Application for VAT General Taxpayer Qualification |
550 |
|
4 |
Real-name Certification of the Legal Representative / Finance Controller |
250 |
|
5 |
Application for Food Business License (for pre-package food) |
700 |
|
TOTAL |
2,550 |
|
Note:
1. If the business to be conducted by the FICE in Shenzhen requires special licence or permit, Kaizen can handle the application and our fees will be quoted upon request.
2. The government fees will be collected before the commencement of services and any shortfall will be billed after completion of registration of the FICE.
3. Item 4 to 7 will only be incurred if we are being engaged for such services.
4. If Chinese tax invoice is required, a Value Added Tax and Surcharges of 7.5% would be applicable.
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