Category: China

China business: Labour 101 — get it right from the beginning or risk big headaches

Employing, managing and developing employees successfully is crucial to the long-term health and success of a company. Foreign companies operating in China often struggle to successfully maintain good employees and terminate difficult ones due to a lack of cultural understanding and knowledge related to relevant laws, rules and regulations. In this article, we outline the…

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China corporate insights: further decreases in value-added tax set to benefit businesses

In the annual Work Report delivered at the Two Sessions (Chinese People’s Political Consultative Conference and National People’s Congress), Premier Li Keqiang announced further cuts to value-added tax rates. From 1 April 2019, the following rates shall be effective: Sector Previous rate New rate Manufacturing sector 16% 13% Construction and transport (including passenger transport services)…

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China corporate insights: understanding the basics of the registered capital registration system

Registered capital refers to the capital to be paid by the shareholders or promoters of a company. The minimum amount of registered capital mandated to be registered was eliminated in 2014, except where required by law, rules and regulations. The Circular of the State Council on Issuing the Reform Proposals for the Registered Capital Registration…

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Tax news: Value added tax exemptions for China’s small-scale businesses are in place

Recently, small and micro China enterprises saw preferential tax relief under the promulgation of the Notice on Implementing the Policy of Inclusive Tax Relief for Small Profit Enterprises Circular, Caishui No. 13 [2019] (Circular 13). What’s more, provisions in Circular 13 further exempt small-scale taxpayers from value-added taxes, provided their monthly sales fall below RMB…

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