FAQ
We have a comprehensive FAQ collections will help foreign investors greatly understand the investment details and conditions about starting business and live in China especially in Ningbo. These FAQs are frequently inquired by our clients then we make them into a list which is a valuable collections. Here we choose top five inquiries which most of our clients are interested in.

 

1.      Can you provide me detailed info of living cost, office rental or apartment rental, the transportation, warehouse rental, the staff average salary, etc. in Ningbo?

 

Here is general expenses and cost information in Ningbo. All these information is only for your reference which does not mean you will enjoy this price or cost in the near future for sure. The living cost and office daily maintenance cost in Ningbo can be 25% to 50% lower than its in Shanghai, Beijing and Shenzhen.

 

◇For a Ningbo local residence, 2000-2500RMB per month for the living cost including meal, bus transportation and other small daily cost will be a common level.

◇In downtown area of Ningbo office renal is usually from 1.6 RMB per day per square meter to 2.8 RMB per day per square meter.

Apartment renal: a two bedrooms apartment with good decoration in decent community in downtown area, the rental is usually from 2500-4000

◇Warehouse which is around 400㎡ the rental is usually from 3500-5000RMB per month.

◇A junior Chinese employee who has one year to three years working experience, gross salary is usually from 3500-4500RMB.

 

2.   Is there any specific rule about WFOE transferring its annual profit to investor's overseas account?

 

Yes. There will be 10% income tax imposed on the net profit amount when investor transfers company profit out of China. Also WFOE must keep 10% of its annual net profit as company’s reserve fund and certain proportion as staff bonus and supplementary benefit fund. When the total reserve fund amount reaches company’s 50% of registered capital there won’t have to be new reserve fund from the next year. The proportion of staff bonus and supplementary benefit fund can be decided by the company executive director or board of directors. Usually it can be 5%.
 

3.      What are the procedures to export normal products by our China trading WFOE? 

 

The common and typical process is :

 

a) Overseas buyer signs purchasing contract with your China WFOE and pays deposit to your China WFOE.

b) Your China WFOE find the products supplier in China and fix the manufacturing details with the supplier and then place the order to the supplier and pay deposit to the supplier.

c)  Supplier produces the products and send the products to the warehouse or port appointed by your China WFOE.

d)  Your China WFOE find the international logistics agency and ship the products to the overseas buyer's port.

e)  Overseas buyer receive the products and pay the balance to your China WFOE. Then your China WFOE pay balance to the supplier.

f)   Your China WFOE apply for VAT refund.

 

4.      What are the statutory obligations I must meet towards my employees according to the Chinese laws as an investor of our Ningbo WFOE?

 

Here is the company responsibility for your Chinese employees:

 

a) Sign labor contract with your employees to establish legal labor relationship or you can also use our HR outsourcing service which means we sign the labor contract with your employees and send these employees to work for. We will take charge of all the employment procedures for your which will greatly save your time and legal risks.

b) Buy social insurance for your foreign and Chinese employees. If you choose our HR outsourcing service we can help you handle your employees' social insurance management and payroll for you.

c ) Your will have to observe Chinese labor laws when you manage your Chinese employees. Chinese labor laws are quite complicated and we can discuss it case by case.

 

5.      How many foreign expats can get working permit and resident permit in a Ningbo WFOE?

 

Each of the WFOE's shareholders can apply for working permit and resident permit. But only when a WFOE's registered capital reaches one million RMB it can hire more foreign staff to work and apply for the working permit. There is no mandatory limits of the foreign staff's number WFOE can hire. But WFOE with higher registered capital can usually get more quota of working permit.

 

 

 

 

 

 

Please contact our service specialist for the full edition of this FAQ collections.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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