ATA Corporate Formation & Management Limited  


Time: 2008-7-1 Author: admin Source:

How to invest

1. Prepare to Invest in China

If your company is ready for investing in China, You need firstly to know the China market situation and learn about the investment policies by Chinese government. The Chinese government has divided its industrial projects for investment into four categories classified as encouraged, permitted, restricted and prohibited. They are indicated in the Industry Category Guide for Foreign Investors. Secondly, the scale of the investment amount is also worth noting. For large investment projects of USD 30million or above, the approval authority rests on central government (State Council ministries); for projects under USD30million, in the unrestricted category or quota free, or license free, the approval authority goes to local government departments.
2. Try to Enjoy Maximum Privileges and Preferences
If you or your company decides to invest in China, the first and foremost importance is to know as much as you can the preferential policies available in China, so that you can enjoy the preferential treatment at maximum level.
China has provided a number of preferential policies to stimulate overseas investment. For encouraged industries, such as infrastructure facilities, apart from the preferential terms, you can even expand your business scope; for the purpose of promoting the economic development in middle and west China, the geographical policies are introduced to apply to different regions. Tax and Tariff preferences are the core issue that companies concern most. For foreign invested companies, the taxes may include corporate income tax, personal income tax, turnover taxes (value-added tax, consumption tax and business tax), land tax, stamp duty, vehicle and vessel tax, urban real estate tax, etc.; for import and export, tariff and import-stage value-added tax may involved.
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