Date 14/10/20 –
Selection of office space in China
To open a company in China, a prerequisite is the presence of a legal address – an office. When registering a company, an office is required, since China is trying to keep businesses safe and prevent fly-by-night companies from emerging. And the presence of a real office of the company reduces the likelihood of such a situation.
Companies can operate under a simplified taxation scheme and under a taxation scheme with VAT.
Simplified company (table)
The physical address requirements for companies operating under the simplified scheme are less stringent than for companies operating under the VAT taxation scheme. For a company operating under a simplified system, it is not necessary to have its own office in a separate room. Such a company can rent part of the office space – a table.
Table rental prices start at RMB 600 per month.
Companies operating under the VAT taxation system need a separate room or area in the common office, where, if necessary, you can put partitions and organize a separate entrance.
Depending on the set of licenses for office premises in the PRC, different requirements are imposed.
So, for example, for companies working with food products, an office with a certain area is required. work with food is supposed. An office space is suitable for a company that will work with finished products.
The minimum cost of renting an office space for a company operating under the standard taxation scheme with VAT starts from 1,000 RMB per month.
Depending on the region, the cost of renting an office may vary, but on average from 1000 RMB.
Representatives of the bank, the chamber of commerce and industry, licensing authorities and the tax inspection may come to your office for inspection.
However, it should be noted that different cities in China have different requirements for the premises allowed for renting a company’s office.
In some cities and provinces, this must be a room in a building declared as a commercial one, in other regions, the company can be registered for the apartment in which you or your employees live.