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If you require your China operations to directly buy and sell, have its own import/export license, and legitimately trade in China – you will need to change your current RO structure to that of a foreign invested commercial enterprise (FICE) or wholly foreign owned enterprise (WFOE)

2. ROs are now more expensive to operate than a FICE or WFOE

foreign invested commercial enterprises (FICE) These are typically used for the following business activities: • Import-export and distribution • Retailing: selling goods and related services to individuals from a fixed location, in addition to TV, telephone, mail order, internet and vending machines, • Wholesaling: selling goods and related services to companies and industry, trade or other organizations • Agencies, brokerages: representative transactions on the basis of provisions • Franchising Use of wholly foreign owned enterprises (WFOE) in the services industry • Consulting, other professional services • Quality control, after sales services, product design, technical support, sampling (although minimum amount permitted)

WFOEs may also be used for manufacturing.

the establishment of both a FICE and a WFOE are rather more complex than an RO

The structuring and application of the new FICE/WFOE can be combined at the same time as the RO closure.

 Qualification requirements for setting up an FIMI

The total investment amount must no less than RMB 20 million (roughly US$ 3 million or EUR 2.27 million);

The Law also states that where the parties have chosen a foreign governing law, the court or the arbitration tribunal should investigate and determine the applicable foreign laws, presumably through expert testimony (as in the past). Where the parties select foreign governing laws by agreement, it is the parties' responsibility to provide copies of the selected foreign governing law

This means that, for example, all shareholder agreements in relation to say a two-party wholly foreign-owned enterprise would have to be governed by PRC law.

In particular, the Law stipulates two important general principles for determining the application of governing laws for foreign-related civil disputes: party autonomy and closest connection

However, the Law is not designed to radically change the current rules of conflicts of laws in China. The requirements to apply mandatory Chinese laws which are provided by other laws are maintained under the Law

The rules of conflicts of laws stipulated under other civil or commercial laws, which are not covered by the Law, also remain unchanged.

Education Surcharge is calculated at 3% of the VAT, CT and BT payments.

If the tax payer (or the tax withholding agent in case of a foreign enterprise) is located in an urban area, the rate is 7% of the VAT, CT and BT payments;

, if a Rep Office is unable to maintain complete accounting books, or cannot accurately calculate its returns or costs, the Rep Office will be taxed according to the Deemed Profit Method, which is based on the Rep Office’s costs or revenue. The selection will depend upon which amount can be more accurately illustrated by the Rep Office. The tax authority will designate a deemed profit rate to the Rep Office and calculate the taxable income based on such deemed profit rate.

he minimum deemed profit rate under the Deemed Profit Method was increased from 10 to 15 percent

c) Liability for Rep Offices to pay Value-Added Tax (VAT)

b) Abolishment of Tax Exemption

a foreign company which seeks to set up a Rep Office must show that the foreign company has been set up at least for two years.

n the case of a renewal the applicant will need to prove that the foreign company still exists. Further a limitation has been introduced as to the term of new and renewed Rep Office licenses for one year at a time (compared to the usual three years).

a maximum of four representatives, including the chief representative, are generally allowed in a Rep Office.

Translators

 Accountants

Lawyers

CCTV said there will be a cut back on rail and road investment over the next 10 years in comparison to the previous 10 (doesn't take a rocket science to know that most of the R&D budget was spent during the previous 10 years)

More than 80 percent of the 18 million auto sales there last year were paid 100 percent up front

fixed investment share of GDP of 47 percent is too high

the increase is a short-term stimulus to offset lowered exports due to the world’s malaise

Beijing’s municipal authorities even announced multinationals should have minimum wages 1.5 times that of local firms