25% CIT (15% for HNTE), full market access to RMB economy, mandatory local director, deep onshore B2B distribution.
When China is the right call, and when it is not.
WFOE (wholly foreign owned enterprise) structure gives foreign owners full control over a China incorporated entity selling to 1.4B consumers. High tech enterprise certification cuts CIT from 25% to 15%. Special Economic Zone incentives layer on top.
JV structures unlock sectors closed to wholly foreign ownership. Telecoms, education, certain logistics. CSRC and PBoC approvals are part of the path, not an obstacle, when the local partner brings the licence.
Local incorporation gives direct access to component suppliers, factory floors and customs treatment unavailable to importers. RMB invoicing avoids cross border FX friction. 110 DTAs reduce withholding on profit repatriation.
Capital controls under PBoC restrict free profit repatriation, Stripe and Mercury do not operate, and FX conversions need SAFE clearance. Most non China facing founders are better served by a gateway rather than a mainland entity.
Crypto is banned for financial institutions, VPN services are illegal, and the Great Firewall constrains content businesses. CBRC and CSRC enforcement is real. These sectors should incorporate elsewhere and trade in via partners.
Working data for China. Cite check each figure before use.
Bundle for China, one invoice.
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Each rate, threshold, and deadline below is cited from an authoritative source.
Information is provided for general guidance and reflects tax year 2025 unless noted. Specific situations require advice from a local practitioner. Always confirm against the cited tax authority and registrar before relying on a figure.