China Company Incorporation
Having a vast territory and well-developed manufacturing industry, in recent years China has continuously opened finance, service and trade industries, and significantly reduced the investment entry requirements of foreign enterprises in order to attract more foreign investments. At present, while no need to make paid-in registration capitals and provide bank credit certificates, foreign enterprises only have to set up filing in the regulatory authorities for easy registration.
It is worth noting that in order to secure social welfare, enterprises set up in China have to pay certain amount of social insurances and housing provident funds for their employees each month, which are usually calculated in percentage of employees’ monthly salaries and together borne by the enterprises and the employees. In view of different living standards among cities, the accrual proportions in calculation vary from one city to another. The accrual proportions for social insurances and housing provident funds are shown below:
|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.|