Business Administration in China

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Equity Joint Venture
 
 
No minimum capital.
100% foreign owned company. Minimum one partner.
 
 
Limied to the amount of contributions.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Co-operative joint ventures, CJV
 
 
No minimum capital.
Minimum 2 partners.
 
 
Limied to the amount of contributions.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Foreign investment joint stock company, JSC
 
 
5m Rmb, 30 Rmb if foreign capital
Minimum 2 partners.
 
 
Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Holding
 
 
minimum de 30m USD
Minimum 1 partenaire.
 
 
Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
 
Business Setup Procedures
For drawing up articles of association, no specifics have been indicated. The capital and the articles of association must be registered with the Provincial Office of Trade and Industry. Deposit of the articles of association and registration are done at the Trade Register. The Business plan must be approved by the authorities before the company can be set up.
The Competent Organization
Ministry of Commerce
Search a Company or a Financial Report
Ministry of Commerce, Find an enterprise

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
55 years for women and 60 years for men.
Working Contracts
Legal provisions govern the work contracts, the collective agreements and the individual negotiation supplement them.
Employment contract and recruiting conditions formalities are strict, which is not so for dismissal constraints which are rather flexible.
There are 3 types of contracts: the permanent contract, the fixed term contract and the contract for the project.

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Cost of Labor

Minimum Wage
No legal minimum salary.
Average Wage
Average monthly gross earnings in China is CNY 1,868 (USD 273).
Social contributions
Social Security Contributions Paid By Employers: 60%
Social Security Contributions Paid By Employees: 11%

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Social Partners

Social Dialogue and Involvement of Social Partners
The Chinese Communist party recognises only one trade union: "the All China Federation of Trade Unions" (ACFTU). The ACFTU is not an independent trade union, it thus cannot be the voice of the workers.
Unions
All China Federation of Trade Unions (ACFTU)
Labor Regulation Bodies
Ministry of Employment

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