1. |
Estimated Service Fees and Costs |
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(1) |
Registration Service Fees Our fees for handling the registration of a FICE in Shanghai, China is RMB18,000. 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 business licence; (5) Application for MOFCOM registration; (6) Carving of company chops and personal chop of the legal representative; (7) Setting up basic RMB bank account; (8) Handling foreign exchange registration; (9) Setting up foreign currency capital account. (10) Application for food circulation license 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. |
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(2) |
Official Filing Fees The fees quoted in Section 1(1) above do not cover official filing fees to be paid to different government department and the official filing fees are estimated to be around RMB1,500, assuming a registered capital of RMB1 million. |
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(3) |
Legalisation Costs Our fees stated above also do not cover the legalization of the identity documents of the shareholder/member of the Shanghai 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. |
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(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 RMB1,000. |
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(5) |
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 RMB300 per page of A4 size paper for the translation services. |
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(6) | Import and Export Qualification Licenses |
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A FICE is required to complete the following procedures before it is allowed to commence its import and export business. Our scope of services:A FICE is required to complete the following procedures before it is allowed to commence its import and export business. 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 RMB5,000, which do not cover government charges estimated to be around RMB1,000. |
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(7) |
Qualification of VAT General Taxpayer A FICE is considered as a VAT small scale taxpayer when it is incorporated. If you want to be treated as a 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 RMB3,000. |
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(8) |
Application of Food Circulation License According to PRC Law, a FICE engage in food trading business shall apply for the Food Circulation License after get the business license before carrying out the food trading activities |
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A summary of the fees stated above is provided in Schedule 1 to this quotation. |
2. |
Payment Terms and Methods |
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Upon receipt of your order, we will issue an invoice to you for your settlement. We require full payment in advance. If China official tax invoice is required, Value-Added Tax with 7.5% will be charged. |
3. | Basic Structure of a FICE in Shanghai |
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The minimum requirements of a FICE in Shanghai, China are as follows:
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5. |
Procedures for Establishing a Shanghai FICE |
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(1) |
Preliminary |
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(a) |
Lease of Retail Shop The investor will have to enter into a tenancy agreement in relation to the retail shop to be used by the FICE as the registered address for a term of not less than 12 months. |
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(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. |
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(c) |
Other Documentation The investor at the same time needs to prepare other documents, such as photocopies of the passport / identity card / mainland travel permit of the director, supervisor, legal representative and (general) manager. |
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(2) |
Application for Business Licence |
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(a) |
Name Search and Reservation The registration process of a FICE starts with name availability search. Kaizen will perform a name availability search with the Shanghai Administration for Industry and Commerce. If the search indicates that the preferred company name is available for registration, Kaizen then apply for the reservation of the preferred name with the AIC. This is called "Name Pre-registration" in China. |
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(b) |
Registration for Business License Upon receipt of the approval for reservation of the preferred name of the FICE, Kaizen will then apply for Business Licence for the FICE from the AIC. The AIC will usually issue the Business Licence within 10 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 the scope of its Business Licence. |
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(c) |
Registration Record Filing with MOFCOM Upon receipt of business license, Kaizen will then arrange the registration record filing with MOFCOM. MOFCOM local branch will usually issue a registration record receipt within 10 working days after receiving all required documentation. |
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(3) |
Post Registration Stage |
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(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. |
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(b) |
Foreign Exchange Registration Application for registration with the Administration Bureau for Foreign Exchange. |
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(c) |
Opening of Bank Account Opening of one capital account, one RMB basic account and/or tax paying account with a bank of your choice in Shanghai, China. |
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(4) |
Extra Procedures for FICE (Food Business) | |
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(a) |
Import and Export Qualification The FICE is required to complete Foreign Trade Operator Registration procedures before it can start its import and export business. |
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(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 general taxpayer, then you shall apply for VAT general taxpayer qualification accordingly. |
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(C) |
Food Circulation License The FICE is required to apply for food circulation license before it can start its food trading business |
6. |
Estimated Time Frame |
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The whole registration process would take around 6 – 8 weeks. The table below shows the estimated time frame for each of the steps for the registration process.
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7. |
Certificates and Materials obtained after Registration |
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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) Record-filing Certificate (3) Articles of Association (4) Company Seal, Financial Seal, Legal Representative Seal (5) Bank Account Opening Permit and Other Bank Stuffs (6) Import and Export Qualification Certificates (7) Food Circulation License |
8. |
Compliance Requirements of a FICE in Shanghai |
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After a FICE is officially registered in Shanghai, 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 State Administration of Tax Bureau and filing of annual report to the business licensing bureau 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 AIC. Kaizen is well equipped with experienced personnel and capable of providing all the services that your Shanghai 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. please contact one of our professional accountants for details. |
Item |
Description |
Amount RMB |
1 |
Service fees for FICE registration (Note 1) |
18,000 |
2 |
Official filing/registration fees for FICE registration (Note 2) |
1,500 |
3 |
Disbursements |
500 |
4 |
Service fee for internet banking facility application (Optional) |
1,000 |
5 |
Legalization Fees (Optional) |
N/A |
6 |
Translation fees (Optional) |
N/A |
TOTAL |
21,000 |
Item |
Description |
Amount RMB |
1 |
Application for Import and Export License |
5,000 |
2 |
Official filing/registration fees for Import and Export Licenses |
1,000 |
3 |
Application for VAT General Taxpayer Qualification |
3,000 |
TOTAL |
9,000 |
1. |
Our service has included the application for food circulation license. |
2. | The government fees are estimated based on a registered capital of RMB1 million. We will collect it before the commencement of services and any shortfall will be billed after completion of registration of the FICE. |
3. | Item 4 to 6 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. |
Download:Fees and Procedures for Setting up a FICE (Food Business) in Shanghai【PDF】 |