Setting-up a una compañía
Hi todos,
Mis socios y yo deseamos instalar una compañía aquí en China para localizar cierto tipo de software en inglés que podemos vender en línea en mercados internacionales. Nos todos experimentan en esta área y sabemos exactamente proceder en el extremo operacional es decir. licenciando de los reveladores chinos, haciendo la localización, setting-up sistemas del pago, los servidores, servicio de cliente, la comercialización, el etc.Puesto que necesitaremos (una oficina pequeña de la persona quizás 15), necesitamos instalar una entidad china legal de modo que poder emplear a personal y dirigir nuestro negocio. Puesto que “no venderemos” cualquier cosa en China (nuestros réditos serán generados en línea de los servidores basados costa afuera), nuestro primer pensamiento era instalar un RO, con un padre de Hong Kong. Hemos hablado a los consultores que nos dijeron que esto fuera fácil de hacer, aunque hay una cantidad justa de papeleo implicada, y tome por lo menos varias semanas.
Dos preguntas vienen importar:
1) ¿Cuáles son las ventajas de un padre de HK? ¿Por qué no instalado un LLC en los E.E.U.U. para $200 inferiores dependiendo del estado, y hágase con él? Otros dicen que para el impuesto las razones o el padre deben estar en el BVI o el otro asilo de impuesto supuesto. Estoy interesado en oír sus opiniones sobre un LLC basado los E.E.U.U. barato y fácil en comparación con algunas de las otras opciones mencionadas.
2) ¿Es un RO realmente el mejor tipo de compañía para nosotros?
El ROS está conforme a un régimen absurdo del impuesto basado en pagar impuesto sobre costos de la compañía (!) más bien que beneficios. Since we won’t be profitable for about 9 months, and will incur fairly large expenses (like staff, rent, equipment, etc.) perhaps a WOFE is the way to go after all. Thoughts?
What originally seemed like such a simple idea - a small office to perform certain tasks all laid out in the business plan, is becoming bogged down in our thinking about how to create an appropriate legal entity. Any suggestions would be highly valued. Thank you in advance.
Jon
July 11th, 2008 at 12:50 pm
Hi Jon,
You ask the right questions. There is no real benefit to an RO if it has a Hong Kong companyas “parent” , except that sometimes it is easier to get the paperwork together for establishment.
Regarding RO vs. WFOE, this is not so easy to answer. Certainly a WFOE gives you more flexibility, especially if you consider invoicing in China. Moreover, you are right that RO’s are subject to considerable taxes. On the other hand, the set-up costs and required investments for a WFOE are higher, and you need to confirm whether a WFOE is allowed for your business. In my experience, everything “online” may be subject to further restrictions and/or licenses - some more research may be needed!
You will be receiving a lot of comments from others on this topic, but if you ever want to discuss, contact me at mjroos@wjnco.com.
July 13th, 2008 at 11:21 am
Hi Jon,
Maarten has given some good comments here and unless you plan to actively use the HK company for conducting the invoicing for transactions or business leads that the RO might be able to generate then you may not need the HK Company.
Most people we do this for actually DO use the HK company for conducting the actual transaction with Chinese parties that the RO has been able to “source”. The tax on HK sourced income is only 16.5% so its a resonable place to book business and might create a deferal if profits are ultimately being remitted somewhere else. There would be no further tax at the HK end after this profits tax has been deducted as HK does not impose any other taxes that would impact the business.
If you are going down the path of a WFOE (and remember these need capitalizing as well as being more expensive, and more complicated to establish), then the HK company makes a lot a lot of sense for three key reasons:
1) Your Holdco would be in a jurisdiction which is familiar and strong from a legal perspective. That in and of itself is a benefit. You can at least have a cut out in a common law jurisdiction if things go wrong in the PRC.
2) From a finance perspective, having the Holdco in HK gives you access to one of the top three banking and fincial centres in the worls.
3) In terms of taxes, you would still have a tax liability in China, but when remitting the funds out as a dividend, China would only levy 5% on the witholding tax to HK as opposed to between 10-15% if directly to North America. If dividends were being remited to the BVI then 10% witholding tax.
In addition, while use of the BVI as a holding jurisdiction is common (it is the second largest investing jurisdiction in China after HK), it is precisely this reason that has made the BVI a bit of a red flag for the Chinese tax authorities. Hong Kong does not have the same stigma attached to it.
Hope this helps and if you need any more guidance, feel free to touch base with me at gledboo1@yahoo.com.
Cheers
Daniel
July 13th, 2008 at 11:49 pm
Hi Jon,
I have a lot of experience in the software game both online as well as OEM and retail, if you want to discuss your BP, dorp me an email : rafalpotega@hotmail.com and I will be able to point you in the right direction.
Regards,
Rafal