Processing Time-limit:
    A series of application procedure shall be performed for setting up a foreign-capital enterprise.It will take authorities about 20 working days to examine and approve.
    The full certificates and licenses issued when all procedures accomplished shall be:Certificate of Approval,Business License, Local Taxation Registration,State Administration Taxation Registration,Code Certificate of Organization, Foreign Exchange Registration, Custom Registration,company seals including cachet, personal seal, financial seal, opening of an account.

Business Scope:
    In China,the business scope of all industries is defined very strictly and accurately.The foreign-capital enterprise shall operate only within the scope approved,which shall be described in Business License.If any item needs to be revised,application and approval are required.For example,the business scope of a technical company shall be:export of products,production and sale of computer,electronical products, home-improvement,network technology,communication engineering,computer and electronical technology info, biology and pharmacy, optical,mechanical and electronic integration,technology development consultation service for high-tech application in traditional industry etc. The business scope of a consultation service company shall be:investment consultation,international economy consultation,trade information consultation,marketing consultation,management consultation ,technology consultation .The enterprise engaged in trade business is required to register in bonded zone.

The Minimal Amount of Registered Capital of Foreign-Capital Enterprise:
4 The minimal amount of registered capital for production,import and export business,consultation service,technology development enterprise :HK＄ 1,000,000 .
4 The minimal amount of registered capital for trade enterprise(bonded zone) :HK＄ 500,000
4 The minimal amount of registered capital for investment enterprise :US＄ 10,000,000.

The Contribution and Payment Manner of Registered Capital:
    The registered capital shall be contributed in installments within 1 year commenced from the day on which the Business License issued. A Report on Verifying Capital shall be submitted by Chinese certified public accountants' firm via it`s verification within 30 days commenced from the payment day. The Report on Verifying Capital shall be put on records in Industry&Commerce Administration Authorities.
The Payment Manner of Registered Capital:
1 Currency contribution:The currency shall be remitted into Statutory Capital Account for Shenzhen Foreign-Capital Enterprise from the foreign investor`s account beyond the boundary.
1 Equipments contribution:After applying to customs for equipments import,the commodities inspection and appraisement authorities will appraise the equipments,A
Report on Verifying Capital shall be submitted by Chinese certified public accountants' firm.
The Usage of Registered Capital:
    The capital can be transferred into RMB account for purchasing office equipment,production equipment or used as circulating fund once verified by Chinese certified public accountants' firm.
The Company Account:
    The enterprise can open RMB account in any bank,a bank shall be designated as basic account(for cash withdrawing only).An application to Foreign Exchange Administration Bureau for opening foreign currency account shall be required.

Preferential Policy:
4 In the first 2 years,the enterprise income tax will be exempted,and collected by 50% in the 3rd year.
4 The enterprise can operate in due form, make out invoices in RMB,calculate income in RMB, without many restrictions on representation office.
4 After-tax profits can be changed into foreign exchange and remitted into investor`s account beyond the boundary.

Ratepaying Provisions:
4 Taxation registration and account book setup:
Taxation registration shall be accomplished as soon as possible to avoid relative punishment imposed upon by taxation authorities.Once taxation registered,account book should be set up duly under the relative regulations.
4 Daily declaration and main categories of taxes related:
* Individual income tax(monthly declared)
* Sales tax(monthly declared)
* Enterprise income tax(quarterly declared)

Income Tax:
    Income tax is categories of taxes shared by central and local government.In general,30% collected by central government , and 3% by local government.The foreign-capital enterprise in accordance with the following conditions shall be imposed according to preferential policy on income tax.
1 The tax rate of income tax for foreign-capital enterprise is 15% reduced from 30%,3% collected by local government will be exempted.
1 The enterprise engaged in energy,traffic,construction business such as ports,docks, operating period of which is 15 years or more shall be imposed from the year in which the enterprise profits.The enterprise income tax will be exempted from the 1st year to the 5th year. The enterprise income tax will be collected by 50% of normal tax rate from the 6th year to the 10th year.
1 For productive foreign-capital enterprise,the enterprise income tax will be exempted in the first 2 years,and collected by 50% in the 3rd year.Upon expiration,If the production value of export products accounts for 70% or more of the total production value of the year, the enterprise income tax will be collected by 10%.The above favourable term for advanced technology enterprise will be extended to 6 years,and collected by 10%.
1 The foreign-capital enterprise engaged in service industry, invested over USD 5,000,000 ,operating period of which is 10 years or more, shall be imposed from the year in which the enterprise profits.The enterprise income tax will be exempted in the 1st year,the enterprise income tax will be collected by 50% of normal tax rate from the 2nd year to the 3rd year.
Sales Tax:
Tax rate of sales tax differs in different industries(from 3%~20%):
Traffic & transportation, construction:3%;
Commercial service:5%;
Insurance: 8%;
Entertainments: 20%.
Individual Income Tax:
    Tax rate of Individual Income Tax adopts excess progressive rate.The tax threshold for Chinese employees is RMB1,600/month, foreign employees is RMB4,000/month.The tax rate(from5%~45%) is 9-class excess progressive rate,