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Dear Mr. Yang,

you have created a perfect website, I like it very much. Now, I need your help with some questions, namly the following ones:

1) Company A is a Rep. Office in Beijing registered via FESCO of a foreign compay, now she will change to a jointventure in a year. If so, what will be the registration capital and how is the difference of the annual Rep. Office costs to JV costs?

2) Company B is also a Rep. Office Beijing registered via FESCO, she will register a company, if in the form of JV or Limited Company, in a year, what will the registration capital be and how will her annual costs change?

Could you give me a detailed answer?

Many thanks in advance and best regards.

Your Website Visitor

Helen Wen

Dear Helen,

Thank you for visiting my website. It's my pleasure to answer the questions you asked.

Generally speaking, to set up a JV, the minimum registered capital is US$200,000. I am not sure what is the meaning of the 'annual cost'. If you want to know the difference of the tax, here is the answer. A JV should bear the business tax at 5.56% of the total business volume and income tax at 33% of the profit. However, in the first several years from JV make profits, the income tax is exempted or half-paid. A representative office should bear the business tax and income tax based on its cost.

In China, there are two kinds of JV, one is general JV, the other is cooperative JV. There are many differences between them. However, the tax is the same.