PathToChina.com

By Vincent Cheung from www.pathtochina.com

After all those annoying procedures surrounded by bureaucracy and red tape, thanks goodness, your business license is finally issued by the SAIC. Now your company is legally established, and you can start to apply for both work permit and residency permit, so you can stay without being forced to leave China due to the expiration of your VISA. Congratulations on everything! However, it’s still not the time you can sit back and relax. You should get busy right away for tax registration now. As shanghai tax bureau’s increasing tightening up on the tax policies against foreign investors, the application for certificate for tax is becoming an exceedingly serious issue you should handle with great care. The on-sight inspection of foreign companies’ office premises started to be implemented by the tax bureau early this year. This new policy is to ensure that the newly established foreign companies’ offices cut the mustard, so to decrease the tax avoidance and evasion. To deal with the inspection, be sure you have following matters well handled. 

1. There are specific requirements for office and its furnishing. Your office has to be located in a office block that’s for commercial use instead of in residential building. Besides, the office should be at least 24㎡. To prevent foreign companies from sharing its office with other companies, the tax bureau official will check if your office has a separate number. As to the office furnishing, at least one desk, one chair, one computer  and one signboard with Chinese company name hung on the front door , and most importantly, 1 landline telephone. This is very important, cause the tax bureau needs to get a hold of you by calling this landline telephone number in the future for any taxation issues including this on-site inspection.

2. You are required to hire a certified accountant. His or her one copy of ID card, one copy of  accountant certificate,  four 2-inch photos, and cellphone number need to be submitted to the tax bureau during the taxation certificate registration.

3. Original lease agreement, invoice, business license also need to be checked to the tax bureau inspectors.

Application for taxation certificate is a crucial step during your company establishment. If you want everything goes swimmingly, be serious about abovementioned stuff, and your taxation certificate get issued in approximately one month, only by then you can move forward to opening of bank account and have the capital injected.

Provided by www.PathToChina.com“”Path To China “ is an International Business Consulting Firm that provides foreign investors with business registration service in China. For business advisory service , please contact Vincent by vincent@pathtochina.com.

This entry was posted on Wednesday, October 10th, 2007 at 3:26 am and is filed under Tax & Accounting, Wholly Foreign-Owned Enterprises ("WFOE"). You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.