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.
Industries with Investment Incentives
Foreign investments are encouraged in industries ranging from manufacturing, wholesale and retail, leasing and commercial service, scientific research and technical service, agriculture, forestry, animal husbandry and fisheries, hydro-environment and public utility management, service organizations for the handicapped, elders and children, certain culture and sports, to entertainment.
Industrial and Commercial Annual Report
Foreign invested enterprise shall undergo an industrial and commercial annual report from 1 January to 30 June every year from the following year after the incorporation.
Annual Report of Foreign Investment Enterprise
A foreign investment enterprise shall submit an Annual Report of Foreign Investment Enterprise every year since the next year of its establishment. The report period is generally from January 1 to June 30 (The specific time is subject to the time announced by the Ministry of Commerce each year).
Employment Contract
An employment labour contract must be signed for recruitment in China, and the rights and obligations of both parties shall be stipulated therein. The enterprise shall sign an employment contract with the employee within one month from the start of his/her employment. Labour contracts are classified into employment contracts with a fixed period, labour contracts without a fixed period and employment contracts with a period to complete the prescribed work.
Social Security Insurance and Housing Provident Fund
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:
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An Enterprise Employee’s Proportion of Contribution to the Social Insurance Funds
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City
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Item
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Proportion Contributed by the Enterprise
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Proportion Contributed by the Employee
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Beijing
|
Social Security
|
27.8% - 29.5%
|
10%+3 yuan - 10.2%+3 yuan
|
|
Housing Fund
|
5% - 12%
|
5% - 12%
|
|
Shanghai
|
Social Security
|
27.16% - 28.52%
|
10.5%
|
|
Housing Fund
|
5% - 7%
|
5% - 7%
|
|
Guangzhou
|
Social Security
|
21.63% - 23.3%
|
10.2%
|
|
Housing Fund
|
5% - 12%
|
5% - 12%
|
|
Shenzhen
|
Social Security
|
14.89% - 23.09%
|
8.4% - 10.3%
|
|
Housing Fund
|
5% - 12%
|
5% - 12%
|
|
Dongguan
|
Social Security
|
15.82% - 18%
|
8.7%
|
|
Housing Fund
|
5% - 12%
|
5% - 12%
|
|
Hangzhou
|
Social Security
|
26.4% - 27.7%
|
10%+4 Yuan - 10.5%+4 Yuan
|
|
Housing Fund
|
5% - 12%
|
5% - 12%
|
|
NanJing
|
Social Security
|
26.38% - 27.06%
|
10.5%+10 Yuan
|
|
Housing Fund
|
5% - 12%
|
5% - 12%
|
|
Qingdao
|
Social Security
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27.1% - 27.95%
|
10% - 10.3%
|
|
Housing Fund
|
5% - 12%
|
5% - 12%
|
|
Suzhou
|
Social Security
|
22.9% - 24.8%
|
10.5%+5 Yuan
|
|
Housing Fund
|
8% - 12%
|
8% - 12%
|
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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.
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Shanghai Zhizhen United Certified Public Accountants (general partnership) in 2006. After 10 years of development, there are currently more than 60 professionals such as CICPA, ACCA, and AICPA, and have an extensive international network.
We will keep our promise to the society and strive to become a responsible corporate citizen, and do our best for social welfare through various forms.
