Services

China Investment Q&A

Q1: When foreign companies invest in China, do their documents need to be authenticated?
A1: Yes, the company documents need to be apostilled.

Q2: How long does it take to process the establishment of a company in China?
A2: Approximately 27 to 30 working days.

Q3: What taxes are levied when there is a share transfer in China?
A3: Share transfer in China is treated as sales, so both the buyer and seller are subject to a stamp duty of 0.05% of the transfer price, and a 10% withholding tax on account profits after asset assessment.

Q4: Do new foreign investors’ documents need to be authenticated for share transfer? How long is the validity period?
A4: New investors’ documents must be apostilled, and the validity period of apostilled documents is 6 months. If the validity period is overdue, the documents need to be apostilled again.

Q5: Will the company be unable to operate during the share transfer period?
A5: No, the company or factory is still able to operate as normal during the review period by the related government authorities.
   
Q6: How is the fee for asset valuation reports calculated during share transfer?
A6: Fees are calculated based on the assessed value of the assets. For example, if the assessed value is RMB 20 million, the fee is approximately RMB 20,000.