Establishing Business

"Industrial Catalogue for Foreign Investment (2015 Revision)"

Hong Kong enterprises investing in the Mainland should make reference to the "Industrial Catalogue for Foreign Investment (2015 Revision)" (the Catalogue) promulgated by the National Development and Reform Commission (NDRC) and Ministry of Commerce (MOC) to determine whether the proposed form of investment is classified as "encouraged" or "restricted", and decide the scope and mode of investment accordingly.

For investing in the China (Shanghai) Pilot Free Trade Zone (FTZ), please refer to the "Circular of the General Office of the State Council on Printing and Issuing of the Special Administrative Measures (the Negative List) on Foreign Investment Access to the Pilot Free Trade Zones" and the opening measures for the service sectors under the "Framework Plan for the China (Shanghai) Pilot Free Trade Zone".

For details of the Catalogue and the FTZ, please refer to the websites of NDRC and the FTZ:
http://www.sdpc.gov.cn/
http://www.china-shftz.gov.cn/Homepage.aspx

Preferential Treatments for Hong Kong Investors in the Mainland

The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is the first free trade agreement concluded by the Mainland and Hong Kong. As a result of the liberalisation measures in trade in services under CEPA, eligible Hong Kong enterprises are able to enjoy preferential access to the Mainland market. For details, please refer to the website of the Hong Kong Trade and Industry Department (TID):
http://www.tid.gov.hk/tc_chi/cepa/tradeservices/trade_services_requirement.html

Workflow for Establishing Business in the Mainland

 
For further details, please refer to the Chinese Version.

Taxation

Tax Registration for Newly Established Business

Registration should be made within 30 days from the date of obtaining the business license. For details, please refer to the relevant websites below.

Main Categories of Taxes for Foreign Invested Enterprise

 
For further details, please refer to the Chinese Version.

Hiring Employees

Labor law and regulations in the Mainland

The "Labor Contract Law of the People's Republic of China" (Labor Contract Law) is the primary source of labor law in the Mainland. Foreign invested enterprises should hire employees in accordance with the Labor Contract Law.

About Labor Dispatch

According to the relevant law, labor dispatch arrangements are supplementary arrangements and shall apply exclusively to provisional, auxiliary or substituted positions.

Hiring of Taiwan, Hong Kong, Macao and Foreign Residents

For applications of the required permits, please refer to the links set out below.

Labor Cost

Annual Minimum Wage

An annual minimum wage is applicable for each municipality and province. Please refer to the below websites of the relevant local authorities on human resources and social security for details.

Social Securities and Housing Provident Fund

Foreign invested enterprise should make applications for social securities and housing provident fund for its staff within 30 days of their initial employment. Please refer to the website of the relevant local authorities for details, or call 12333 for enquiries.

Regarding social security for foreign employees, please refer to the following link:
http://www.gov.cn/gzdt/2011-09/08/content_1943787.htm

 
For further details, please refer to the Chinese Version.

Intellectual Property

Types of intellectual property in the Mainland include trademark, patent, copyright, and business secrets. There are relevant laws and regulations on protection of intellectual property rights, intellectual property rights infringement and intellectual property rights dispute.

Trade Mark

Applications for trademark registration, modification and assignment should be made to the Trademark Office of the State Administration for Industry and Commerce of the People's Republic of China.

Patent

Applications for patent can be made by a patent agency designated or authorised by the patent administration department under the State Council.

Copyright

The National Copyright Administration of the People's Republic of China and relevant local authorities are responsible for copyright matters.

Business Secrets

For violation of its trade secrets, Hong Kong enterprise may request an administrative remedy from the local administration for industry and commerce or file a lawsuit with the People's Court.

 
For further details, please refer to the Chinese Version.