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Foreign-funded manufacturing enterprise
   With the long-term development of manufacturing sector, China has become a bellwether in the global manufacturing industry. As compared to some emerging manufacturing countries or regions, China possesses sophisticated technologies, a complete industry chain and well-developed logistics infrastructure, which will help investors to improve the operation of their manufacturing businesses and rapidly expand their business presence. In addition, the soaring consuming power of Chinese people will also provide a vast market for investors’ products.

Registered Capital

 From March 1st  2014, the government cancel the request of paid-in register capital. In some area, the government cancel the limited request of register capital.

Categories of Establishment

・ Production
・ Production + domestic sales in China
・ Production + domestic sales in China + export

Scope of Business

・ Production of products within the scope of business
・ Distribution (of self-products)
・ Import/export (of ancillary products produced by the enterprise)

Taxes Involved in Operation of Foreign Investment Producer Enterprises

◆ Value Added Tax
General Value Added Tax Payers pay VAT at 13% or 17%
Small-scale Value Added Tax Payers pay VAT at 3%
General Value Added Tax Payers of Producer Enterprises refer to producer enterprises with annual sales value exceeding RMB 500,000 and with established financial system, while producer enterprises failing to meet these requirements are small-scale Value Added Tax Payers.

Corporate Income Tax
Tax rate is generally 25%
High-tech enterprises are subject to tax rate of 15%
Small-scale and small profit companies are subject to tax rate of 20%
Criteria for a small-scale and small profit company: a company that cannot engage in business restricted and prohibited by the PRC government and its annual taxable profit does not exceed RMB300,000, with staff less than 100 and total assets not exceeding RMB30 million.
High-tech enterprises are defined as the resident enterprises that specialize in research & development (R&D) and transition of technological achievements within the scope prescribed by Fields of High and New Technology Eligible for Primary Support of the State, possess independent intellectual property right, and practice operating activities accordingly. Such high-tech enterprises shall have been registered for more than one year.