With the upgrading and transformation of the enterprises in China, the consulting enterprises providing updated information and solutions become a new driver for economic development and are supported by the PRC industry policies. The consulting service industry is greatly benefited by inclusion in the most influential tax reform in China, i.e. “levying value-added tax in lieu of business tax”, which greatly mitigate the tax burden of the industry. As compared with other enterprises, the setting-up requirements and approval procedures of a consulting service enterprise are more simplified and thus it is well-received by investors.

Registered Capital

The amount of registered capital shall be comparable to the operating scale of the company with the minimum amount of RMB100,000.

Type of Business

• Information consulting business
• Technical development business
• Investment consulting business

Scope of Business

• Enterprises engaging in information consulting business
  • Economic information consulting
  • Commercial/ business information consulting
  • Information technology consulting
  • Marketing information consulting and survey
  • Corporate image planning
• Enterprises engaging in technical development business
  • Technical development in the fields of network technology or electronic technology
  • Technical consulting
  • Technical development for computer software and hardware
  • Technical services and technical transfer
• Enterprises engaging in investment consulting business
  • Corporate investment consulting
  • Project investment consulting
  • Marketing planning
  • Investment management
  • Investment information consulting

Required Documents

• Investor's qualification certificate of entity or natural person's ID card
• Directors, supervisors and mangers' appointment documents and ID cards
• Legal representative's appointment document and ID card
• Certificate on assessment of capital from banks
• Lease contract or certificate of title
• Documents or certificates from other authorities for examination and approval prior to industry and commerce registration

Required Time

About 60 workdays

Taxes Involved in Operation of Foreign Investment Consulting Enterprises

• Value-Added Tax
  • Small-scale Value-Added Tax Payers pay VAT at 3%
  • General Value-Added Tax Payers pay VAT at 6%

Corporate Income Tax

• Corporate income tax rate is 25%
• Small-scale and small profit companies are subject to corporate tax rate of 20%

Criteria for a small-scale and small profit company: a company with annual taxable profit does not exceed $300,000, with staff less than 80 and total assets not exceeding RMB 10 million shall not engage in business restricted and prohibited by the PRC government