China Company Incorporation
With its accession to the World Trade Organisation (WTO), China has strengthened its roles of manufacturing base and consumer market, thus attracting ever greater attention from overseas investors considering China company formation. Nevertheless, China is still a place with both opportunities and risks in the eyes of most investors due to factors such as political and cultural backgrounds.
In order to facilitate our clients' needs to develop their business in China, Conpak established its office in Shenzhen, Shanghai and Beijing China years ago, which has brought Conpak in-depth understanding of Chinese policies, economy, tax system and so on. Through our Chinese advisory group, we can provide practical and feasible proposals for investors regarding China company formation to minimize the future risks to our clients.
For the purpose of social welfare, an enterprise established in China is required to make contribution to the Social Insurance Fund and the Housing Provident Fund for its employees on a monthly basis. The contributions to the Social Insurance Fund and the Housing Provident Fund are usually calculated based on a percentage of the employee’s monthly salary and made by the enterprise and employees collectively. The proportion of contributions varies from cities owing to different living standards. The following shows the proportion of contributions to the Social Insurance Funds and the Housing Provident Fund respectively in some cities of China:
|An Enterprise Employee’s Proportion of Contribution to the Social Insurance Funds|
|City||Item||Proportion Contributed by the Enterprise||Proportion Contributed by the Employee|
|Note: The base of payment of the Social Insurance Funds of the above cities is their average monthly salary, with its minimum and maximum at 60% and 300% respectively of the average salary.|