Enter the Chinese Market: CBEC & Company Formation

VAT (增值税): standard rate 13%, with reduced rates of 9% and 6% (transport, modern services etc.)

e-Fapiao: fully digitalised electronic invoices are now rolled out nationwide — issuance, delivery and booking happen entirely online

Corporate Income Tax: standard 25%, reduced to 15% for certified high-tech enterprises

Cross-border e-commerce (CBEC): under the 9610 direct-mail and 1210 bonded-warehouse models, consumer orders within the RMB 5,000 single-transaction limit are taxed at the preferential CBEC composite rate — lower than general trade

• WFOE (Wholly Foreign-Owned Enterprise / 外商独资企业): 100% foreign ownership; registered capital is now a subscription commitment with no minimum paid-in requirement — the default choice for foreign investors
• Joint Venture (JV): shared ownership with a Chinese partner, useful where local licences or channel access are needed
• Representative Office (RO): liaison and market research only — cannot trade or generate revenue
• 有限公司 (domestic LLC): requires Chinese shareholders; nominee structures carry real legal risk and need careful assessment

• Free Trade Zones: Shanghai FTZ and the Hainan Free Trade Port offer shortened negative lists for foreign investment and easier cross-border capital flows
• CBEC pilot zones: 160+ comprehensive cross-border e-commerce pilot cities with streamlined customs clearance and export tax rebates
• High-tech enterprise status: corporate income tax cut from 25% to 15%, stackable with R&D super-deduction
• Hainan Free Trade Port: 15% CIT for encouraged industries, with further liberalisation after full customs closure operations