Mention China and almost every person close to you will say that that is one of the fastest rising economies. Forget about the COVID-19 pandemic and China-US trade wars, China is a massive force that is driven by pro-business reforms, and you can also take advantage of it to grow your enterprise at the same rate. In this post, we will look at China in numbers to demonstrate why this is the best time for company formation in China.
Economic Numbers: What Do They Say about China?
When an entrepreneur looks at an investment jurisdiction, the first thing that rings in mind is the GDP. What is economic growth? What is per capita GDP? China has performed excellently and they all indicate a country on the runway ready for takeoff.
The rapid growth of the Chinese economy has made some experts start speculating that it is only a matter of time before it can overtake the US. Let us take an example here. In 2018, IMF (international monetary fund) estimated the Chinese per capita GDP in nominal dollar to be $9,608, which was about 15.3% of the US per capita. However, hold on for a minute. We agree with IMF that this is not the true picture.
Because the prices of goods and services in China are approximately 50% lower than in the US, adjusting the numbers to that fact implies that in 2018, the GDP value of the country shifts from $13.4 trillion (nominal dollars) to $25.3 trillion (purchasing power parity). With this reality, it means that China’s economy surpassed that of the US way back in 2014
Sure these numbers from IMF can be contested by experts, but the truth is that China is racing fast, and you want to be on board. So, grab the opportunity and register a company in China right away.
A Closer Look at Taxes in China
As an entrepreneur, one of the factors to check when thinking of business expansion offshore is taxes. Unlike 50 years ago, China has changed its policies and is now offering tax incentives to attract more foreign investment.
The standard corporate tax rate for companies in China is 25%, which is lowered down to 29% for small-sized companies. If you want to incorporate a company offering new high-value technology, the tax is revised further down to 15%. This is why a lot of startups in the tech niche, from artificial intelligence to autonomous cars, are all running to China. You can also enjoy lower taxes for setting your company away from the coastal areas and in free trade areas (FTA).
How to Register a Company in China Fast
The numbers that we have listed in this post are an indication of a jurisdiction that is ready for investment. To take advantage of it, you can expand your business there by registering a company, such as a WFOE, branch office, or joint venture. Some of the things that you need for business registration include:
- Getting a business name.
- Selecting the business scope.
- Applying for an approval certificate.
- Applying for a business license.
- Registering with a Public Security Bureau.
- Opening a bank account.
Because the process involves dealing with different offices, it can be pretty lengthy and complex. Indeed, many people are unable to prepare the long list of documents required for company registration in China. Instead of trying to follow the process on your own, the best option is working with an agency of experts. They have all the experience and resources needed to complete the process fast and conveniently.
If you want your company to grow fast, it is time to take it to China. Most businesses that have gone there are already reaping the benefits of a larger market, and supportive regime. So, make sure to identify a good agency of experts to help you register the company in China and craft excellent strategies for success.