新闻 - J & K Investment Consulting

1. Know the Form of Investment in China

Non-legal-person Enterprise: legal establishment, has certain organizations and property, but do not have legal personality.
Form of Establishment: resident representative offices of foreign (region) enterprises, partnerships, etc..

Legal Person: means having the amount of funds the law stipulates, corporate name, articles of association, organization, address and other statutory requirements in line with the law, to independently bear civil liability, to register to obtain legal personality of social and economic organization approved by the authorities.
Form of Establishment: foreign-owned enterprises, joint ventures, Sino-foreign cooperative enterprises.

2. Registered Capital

All shareholders or promoters subscribed capital contributions.
The registered capital needs to be identified by the shareholders in accordance with their own business operations.

3. Taxes Required to Be Paid in the Business Operations

According to industry sectors and scales, 5% sales tax, 3% -17% value-added tax, corporate income tax of 20% -25%.

4. How to Return Profitable Part of the Enterprise to Investors?

Net income after tax of the enterprise audited by Taxation Bureau, then investors can apply for the distribution of shareholders profits.

5. How to Get a Visa to China?

Visa to China, according to the purpose to China, it can be divided into business and employment. There are single and multiple forms and the period from 1 month to 2 years. Family members can apply for the same visa with applicants to China.

6. How to Hire Chinese or Foreign Eemployees?

You can recruit Chinese or foreign employees after the completion of company registration. If hiring Chinese employees, the company needs to pay social security and legal reserves of housing acquisition for them.
If hiring foreign employees, the company needs to apply for legal employment procedures and the visa to China.If hiring foreign employees, the company needs to apply for legal employment procedures and the visa to China.

7. How to Know Your Chinese Partner’s Background?

Typically foreign joint venture or Chinese cooperation must be corporation within China. Thousands of miles away, how to know whether the Chinese partner is a legally established company?
We can provide you with background checks of your Chinese partner.

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With the strength of Chinese investment reform and opening market, more and more foreign investors set their sights on China. For China, many foreign investors have enthusiasm to invest but have some investment concerns.
How to successfully operate businesses in a country with unfamiliar legal and cultural backgrounds?
How to know the Chinese partner's background?
There are all problems worried by investors such as employing local staff.

Before Investing in China >>

Investment in China >>

Exit China >>

To better handle the work permit application of foreigners during the epidemic prevention and control period, Shanghai Science & Technology Committee and Shanghai Foreign Experts Bureau issued the following notice On March 10 2020:

1. Reduction or exemption application documents for foreign high-end talents

No age, education or work experience restrictions. And no insurance documents, insurance commitments, or third-party commitments are required for foreign high-end talent whom is over 65 years old.

2. Shorten the approval time to cancel foreigners' work permits in China

The approval time for the cancellation of the Foreigner's Work Permit is shortened from 10 working days to a maximum of 3 working days.

3. Proving employment termination by uploading E-documents.

During the epidemic period, relative email loop, discussion record via WeChat or the certificate of dissolution with electronic signature can be recognized as the certificate to terminate the labor contract.

4. E-Tax records are acceptable

The e-document of tax withholding and payment uploaded by the employer can be used to apply for the work permit.

5. Flexible salary commitment requirements

For foreign talents who adopt the salary commitment system applying for the extension of work permit, the relevant requirements on the salary commitment during the epidemic period (tentatively from February to April) can be appropriately relaxed.

6. Temporarily cancel the time limit of applying for the work permit extension

The restriction for "extension of work permit application shall be submitted 30 days before the expiration" is temporarily cancelled. The employer can do online submission before the expiration of the work permit, and the recovery time will be notified separately.

7. To approve the materials of "automatic extension of validity of the stay period in China

During the epidemic period, if foreign talent's visa or residence permit expires, while they're still in China, they can apply for the work permit in Shanghai within the automatic extension period approved by the entry and exit administration department.

8. Provide service guarantee to support foreign experts to resume work & production

The foreign experts service departments in all districts and the employers shall conscientiously implement the requirements for epidemic prevention and control in Shanghai, proactively take care of foreign experts, promptly respond to the needs of foreign experts, and provide services for foreign experts in working and living to support resume work and production.

Faciliation Measures for Foreigner's Work Permit during the Epidemic Period

Last week, we were pleased to watch the live broadcast of "Facilitation Measures for Foreigner's Work Permit during the Epidemic Period" held by Shanghai Association of Foreign Investment. This live broadcast mainly talked about foreigner's work permit application in China during the epidemic situation. Deputy director of Shanghai Foreign Experts Bureau, Ms. Huang Hong and Ms. Wang Haiyan introduced the current situation and the latest policies for the enterprises.

General Introduction of the Foreigners' Work Permit in Shanghai

At present, around 215,000 foreigners work in Shanghai, around 23.7% of all in China and ranking first in the country. As the new system implemented since 2017, as of March 2020, Shanghai has issued about 204,000 work permits for foreigners, including more than 36,000 foreign high-end talents (Class A), around 18% of all applicants, ranking first in terms of quantity and quality in China.

At present, the right to approve foreigner's work permit has been delegated to Pudong, Huangpu, Xuhui, Yangpu, Minhang, Songjiang, Qingpu, Hongkou and other districts. Meanwhile, Shanghai Foreign Experts Bureau and Exit-Entry Administration Bureau are working together to explore a more efficient mode of "One window, parallel examination & approval, and simultaneous access" for work permit application, so as to facilitate employers to "Fill in one form, come to one place but able to finish two things".

About "Do not meet" approval policy for foreigner's work permit in China during the epidemic period

"Do not meet" approval policy (version 1.0)

On February 1st, Shanghai Foreign Experts Bureau issued the notice to implement the "do not meet" approval policy, which means, for those who need to apply for work permit notification (type B and C), and for those who need to do work permit extension or cancellation (type B and C), the employer can use the "commitment system" to complete the whole process through online, instead of submitting paper materials to the counter. Foreign high-end talents' work permit application process shall still remain as the previous process and do not need to submit paper materials to counter.

"Do not meet" approval policy (version 2.0)

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On March 10th, based on previous "do not meet" approval policy (version 1.0), Shanghai Foreign Experts Bureau issued "Eight New Articles" , which further improved the model of "do not meet" approval policy for foreigners coming to China during the epidemic. The details are as follows:

Reduction or exemption application documents for foreign high-end talents
Shorten the approval time to cancel foreigners' work permits in China, the approval time for the cancellation is shortened from 10 working days to maximum 3 working days.
Proving employment termination by uploading E-documents
E-Tax records are acceptable
Flexible salary commitment requirements
Temporarily cancel the time limit of applying for the work permit extension
To approve the materials of "automatic extension of the period of validity of stay in China"
Provide service guarantee to support foreign experts to resume work and production

J & K will continue to pay attention to the relevant news & information about foreigner's work permit and residence permit in China and share it with customers as soon as any update.

China-Korea "Fast Track" Coming

On April 29, 2020, China and South Korea held the second video conference of joint defense and joint control cooperation mechanism. At the meeting, the government of China and South Korea reached an agreement to announce the establishment of a "Fast Track" for urgently needed personnel exchanges in important business, logistics, production and technical services between China and South Korea.

What is "Fast Track"?

The "Fast Track" aims to ensure that under the prevention and control of the epidemic, it will facilitate the communication between the people who are in urgent need of the resumption of work and production between China and South Korea, maintain and develop the economic and trade cooperation between the two countries, and maintain the stability and smoothness of the industrial chain and supply chain of the two countries.

Which areas of China are applicable to "Fast Track"?

Because the requirements of epidemic prevention and specific measures in the two countries are not the same. Specifically, ten provinces and cities in China will be covered by the "Fast Track" approach. Due to the fact that the Korean Chinese routes in some places have not yet returned to normal, there are only five regions (Shanghai, Liaoning, Shandong, Jiangsu and Anhui) that are actually applicable to the channel.

How to realize "Fast Track"?

Relevant Korean personnel can apply for visa to China with the invitation letter issued by the Chinese local government and the health certificate issued by the medical institution designated by the Ministry of health and wellbeing of South Korea. After passing the health monitoring and quarantine inspection, the isolation time after entry can be shortened, and then they can be effectively managed in the whole process according to the closed-loop principle (it is forbidden to take public transport after entering China. You must use private vehicles to travel and monitor your status at all times.).

Previously, the South Korean government stipulated that all immigrants, regardless of nationality, must receive 14 days of isolation observation after entering the country. However, according to the new regulations, in the future, when Chinese enterprises visit South Korea for important business purposes, they only need to submit the negative certificate of new coronavirus test to the Korean embassy and consulate in China within three days before going abroad, then they can apply for exemption from quarantine. After entering Korea, they need to be tested for virus again. If the result is negative, they can engage in economic activities in the whole territory of Korea without isolation, and only need to accept the dynamic epidemic prevention management of South Korea.

The specific operation rules are still under further optimization. Stay tuned for more information with us.