Khorgos Company Incorporation
Located in Xinjiang Yili Kazakh Autonomous Prefecture, Khorgos is a national first-class highway port with railways, highways, aviation, pipelines and international optical cables. In recent years, with the comprehensive promotion of the “Belt and Road” initiative, the business, tourism, import and export trade, etc. sectors of Khorgos have been developing rapidly. To further enhance local economic construction, the government has given priority to supporting software development, technical service, film and television production, video production, network technology, information technology, information consultation, advertisement production and other sectors, and has successively introduced a series of tax incentives and industrial support measures to encourage entrepreneurs to invest in Khorgos.
- Company name search
- Submission of registration materials
- Submission for review and approval (e.g., if there is any business item that needs any special operating license in the scope of business of the company)
- Application for the business license
- Carving of the official seal, the special financial seal and the legal representative seal
- ID cards of shareholders and the legal representative
- The company’s name, scope of business and ratio of investments
- Real estate certificate or official lease agreement
Income Tax Reduction
Between 1 January 2010 and 31 December 2020, any enterprise established in Khorgos Economic Development District that falls within the List of Key Enterprises Entitled to Income Tax Incentives in Regions with Certain Difficulties in Xinjiang shall be exempted from the enterprise income tax within five years after it gets its first production revenues. Upon the expiration of the tax-exemption period, the enterprise shall then be exempted from the part of the five-year income tax that should have been paid to the local government.
Governmental Incentive Subsidy for Investment Sectors
- A newly established enterprise that has settled the taxes payable in a tax year shall be entitled to an incentive according to the total amount reserved in the local finance. The maximum incentive ratio is 50%.
- A newly established industrial enterprise with a fixed asset investment of over RMB 50 million shall be entitled to a subsidy at a rate of RMB 50/m2 according to the actual requirement and completion deadline of the project; a high-tech enterprise shall be entitled to a subsidy that equals 1% of the total equipment investment.
Salary Individual Income Tax Incentive
A taxpayer that settles his/her individual income tax within a tax month shall be entitled to an incentive according to the part reserved by the local government, up to an incentive ratio of 90%.
Enterprise Listing Incentive Subsidy
- An enterprise shall be entitled to a full subsidy provided by the government of the Development District with the undistributed profits and registered capital converted from surplus reserves in the process of shareholding reform according to the part of the individual income tax reserved by the local government according to the related rules; and an enterprise shall be entitled to a full subsidy provided by the government of the Development District for the part of the individual income tax to be paid for equity transfer reserved by the local government when the enterprise introduces venture capital for the expansion of its capital scale.
- An enterprise shall be entitled to a full subsidy for the part reserved by the local government in the enterprise income tax actually paid for one-time added profits due to accounting audit in the process of shareholding reform and listing.
- A company listed in another place, whose registration place is moved into the park and whose tax registration is made in the park shall be entitled to an incentive for the part of the enterprise income tax reserved by the local government for two consecutive years from the year after it is moved into the park.
- An enterprise listed between 1 January 2017 and 31 December 2020 or an intermediary agency providing such listed companies with fostering recommendation services shall be entitled to an incentive of RMB 50,000.
- A listed backup enterprise that has initiated the incorporation of a limited liability company and has gone through procedures for assistance filing and registration with the Securities Supervision Bureau of the Autonomous Prefecture shall be entitled to a subsidy of RMB 200,000 provided by the finance of the park; after such an enterprise passes the listing guidance examination, the enterprise shall be entitled to another subsidy of RMB 300,000 provided by the finance of the park.
- Local enterprises that have been listed successfully as of 2017 shall be entitled to incentives of different numbers, up to RMB 2 million.
- For an eligible listed enterprise or a limited liability company that has completed the reform, the limited liability company that has successfully offered enterprise directional bonds and offered private bonds via the Xinjiang Equity Transaction Center (not including any state-owned or national enterprise) shall be entitled to a subsidy that equals 1‰ of the financed amount (up to RMB 1 million); a listed company with an amount of refinancing of over RMB 100 million enterprise an one-time incentive of RMB 300,000.
Industrial Support Incentives
Other Limited Companies
- The enterprise income tax rate is 15%, and 50% of the part distributed to the local government shall be allocated to the enterprise, so that the actual tax rate is 12%.
- The individual income tax rate is 20% and 50% of the part distributed to the local government shall be allocated to the enterprise.
The enterprise income tax is zero; the individual income tax rate is 20%, and 50% of the part distributed to the local government shall be allocated to the enterprise.
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