Monthly Archive April 12, 2021

What You Need to Know: China Visa Requirements

Chinese has become home for many Western expatriates who desire work outside their home countries. The Chinese government’s visa application process has been greatly simplified in recent years, but is still rather complicated. Anyone looking to acquire a Chinese work visa should keep in mind some crucial tidbits of information that will be crucial in deciding the status of your work permit.

There are three different kinds of work visas one can apply for:

  • M Visa: Issued to people who are not employed nor paid by a Chinese firm. Typically for brief business trips that total lest that 6 months per year
  • Z Visa: Granted to foreigners who are employed in China and spent for that 6 months out of the year in China.
  • R Visa: Issued to highly qualified individuals who meet the requirements for a class A visa, as well as their immediate family. However, it is limited to 180-days per entry.

How do you obtain a Work Visa?

The Chinese government has a point system which classifies visas by a certain criteria, which includes one’s expected earnings in China, work experience in one’s respective industry, level of proficiency in the Chinese language, and level of formal education. Applicants deemed to be low-skilled need to score a minimum of 60 points for a class B and 85 points for class A visas, whereas there is no limit on the number of class A visas issued for those considered high-skilled.

Documents You Will Need:

After deciding on which visa is best for you, you will need to provide the following documents:

  • Passport, visa or valid residence permit
  • Job qualification certificate
  • Medical report
  • Employment contract, employment certificate, or government authorization letter
  • Authenticated copy of your educational certificate (or diploma) of your highest academic degree or relevant vocational qualification certificate
  • Certificate that proves you have no criminal conviction

While making a list of the required documents might appear simple and straightforward, the information needed from those documents are more complicated. Here’s what you need to know:

Certificate of No Criminal Conviction

The Certificate of No Criminal Conviction is an essential document for applying to a work visa. This should be obtainable online and will appear differently depending on your country of origin. There are usually a government website where such a document can be requested. If you are in the USA, you should follow the procedure listed in this document or from the US Department of State. The Certificate of No Criminal Conviction will need to be notarized by a public notary or solicitor.

Educational Certificates

To prove your level of education, you will need to have the pertinent documents notarized by a public notary or solicitor. This includes diplomas (from college or high school), degrees, or even TEFL or TESOL certificates if you intend to be an English teacher.

“Legalization”

Once all the needed documents are notarized, you will then need to deliver them to your local Chinese embassy for “legalization,” along with an Application Form of Consular Legalization of the Embassy/Consulate of the People’s Republic of China. Barring rare exceptions, these documents must be submitted in person, not by mail.

How much does it Cost to get a work visa?

The costs of applying for a work visa vary by country of origin. US citizens, for instance, would need to pay USD 140 for a single entry Z visa while it would cost a UK citizen GBP 151. If collecting all the documents, making separate payments, and delivering finalized documents to a Chinese embassy is too difficult, It may be easier and cheaper to pay an agent a flat fee to take care of the whole process for you. 

Getting Started…

The above is a general outline of the process to apply for a China work visa. It is important to understand which visa you are applying for and gather the necessary documents in a timely manner to maximise your chances of a successful application. 

At Incorp China, we can assist you through the entire process, and liaise with necessary parties to collect your documents and submit your application. For more information on our services, please contact us at any time for a free quote

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Profit Repatriation: How to Get Your Money Out of China

As China’s economy continues to grow, it appears to foreign companies as an increasingly attractive place to do business. China is the only major economy to have grown during 2020, a year remembered by many for the coronavirus pandemic and concomitant economic recession. But as foreign businesses invest in the China, a growing number of them are also looking for the most efficient way to bring their profits back home. 

The rules for repatriating funds are different for individuals and companies, regarding both the preconditions one must meet and limits on the amount transferred. Here, we will can compare the regulations for companies and people:

For Companies

There are three methods by which a Wholly Foreign Owned Enterprise (WFOE) can remit its profits across borders: paying dividends, intercompany payments, or granting loans to a related foreign firm.

Repatriation with dividends

Transferring profits through dividend payments can only be done once the follow conditions have been met:

  1. You have paid the corporate income tax of 25%.
  2. The annual audit report has been completed.
  3. Accumulated losses from previous years have been recovered.
  4. All registered income has been included into the WFOE.
  5. 10% of the WFOE’s after-tax profits have been put into a mandatory surplus fund. (This is not necessary if the fund has already reached 50% of registered capital).

Intercompany payments

A WFOE can repatriate money to the parent company by including such funds in intercompany transactions. However, this method is a trade-off: because cash transfers of this nature face fewer preconditions, they may face heightened scrutiny from Chinese officials, necessitating thorough record-keeping on your part.

Loans to related foreign company

A WFOE can also extend loans to a related foreign business. A maximum of 30% of the parent company’s equity can be extended if both companies have an equity sharing relationship, have been established for at least a year, and comply with foreign exchange rules.

For Individuals

Most individuals who have a legitimate employment contract and duly pay their taxes will not find it very troublesome to repatriate their earnings back home. Methods differ slightly depending on the size of the amount being repatriated.

Small amounts

Any amount smaller than RMB 200,000 is allowed to be carried on your person as you leave China, while sums exceeding that figure have to be declared as you transit through customs. If you are leaving on short notice, keep in mind that foreign nationals have a withdraw limit of only US$500 per day.

Large amounts
Those sending larger amounts our of country must supply their bank with their employment contract, valid identification, payslips, work permit, and tax payment documents (including Tax Identification Number).

Once all necessary documents are received, the bank will make an application to China’s State Administration of Foreign Exchange (SAFE), which exercises strict control on money entering and exiting the country. Once the application is accepted, the predetermined sum of money can be transferred to a foreign account of your choice. This can be done by the bank itself or a wiring service, such as Western Union.

Choosing the right method for you

All methods of profit repatriation in China are fluid and frequently changing.  They are different from province to province, city to city, and sometimes even vary between local district within the same city. To find the best plan for you, it would be best for us to provide a complimentary consult to clearly understand your needs.

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Come aprire un conto bancario in Cina

Aprire un conto bancario in Cina è uno dei passi fondamentali per chi volesse iniziare la sua avventura commerciale nel gigante asiatico. Una delle caratteristiche più attraenti della Repubblica Popolare Cinese è la dimensione del mercato interno, il quale, per dimensioni, non ha nulla da invidiare a quello statunitense o europeo. Tuttavia, la conoscenza della lingua e della civiltà cinese possono non bastare, in quanto fare affari in Cina implica un’adeguata conoscenza del sistema economico e burocratico. Aprire un conto bancario in Cina è uno dei passaggi fondamentali, nei prossimi paragrafi sintetizzeremo tale processo ripercorrendo i principali punti dell’iter burocratico.

Perché aprire un conto corrente in Cina?

Pianificare il proprio ingresso nel mercato Cinese può essere difficoltoso a prescindere dalle dimensioni della tua azienda. Infatti poco importa che tu sia una multinazionale o una PMI, è necessario seguire un iter burocratico che si differenzia a seconda della tipologia di attività. Si comincia acquisendo una “business license”, per poi passare ai passi successivi, tra i quali appunto aprire un conto bancario in Cina. Questo è un passaggio imprescindibile, sia che tu voglia aprire un WOFE o un Ufficio di Rappresentanza (RO) dal momento che sarebbe impossibile effettuare le regolari operazioni giornaliere senza un conto bancario aperto in una banca locale.

Di cosa ho bisogno per aprire un conto bancario in Cina?

A causa dei regolamenti della People’s Bank of China (PBC), la strada potrebbe rivelarsi tortuosa. Infati, dal 2020, la PBC obbliga le banche commerciali a svolgere un’analisi dettagliata dei loro clienti esteri. Questa politica è denominata “Know your costumer” e implica non solo il monitoraggio delle attività commerciali, ivi comprese le transazioni finanziarie, ma anche un attento scrutinio delle attività bancarie con enti terzi, da intendersi come l’analisi di eventuali conti aperti ovvero “dormienti”, delle attività in capitale della società e, in aggiunta, la valutazione di operazioni “sospette” o anormali. Quindi, se si recasse un rappresentante legale della tua società in Cina e si recasse in banca per aprire il conto, gli verrebbero chieste alcune domande che potrebbero sembrare addirittura scoraggianti, in quanto mirano a verificare la natura del rapporto tra il richiedente e la società che rappresenta.
Per snellire il processo, è bene che il richiedente abbia con se pochi documenti:

  • La business license
  • Il certificato di approvazione emesso dalle autorità cinese
  • Documento d’identità del richiedente e certificato di codice dell’azienda
  • Certificato di registrazione delle imposte locali e statali

Infine, data la durata e la relativa complessità del processo, le banche cinesi suggeriscono che il rappresentante legale dell’azienda resti in Cina fin quando lo stesso non sia portato a termine; momentaneamente, a causa delle restrizioni all’ingresso, sono consentite richieste da remoto e un processo virtuale di conoscimento del cliente e accertamento delle credenziali. Inoltre, anche grazie al supporto delle ambasciate e dei consolati, si sta cercando di creare soluzioni alternative che possano garantire il ricevimento della documentazione necessaria all’apertura di un conto corrente.

Per maggiori informazioni, potete:

[email protected]

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