Investment in China

INVESTMENT IN CHINA

Investment in China may be either through a WFOE (Wholly Foreign Owned Enterprise) or a JV (Joint Venture) company. (Click here if you are interested in a Representative Office, which allows promotion, marketing and other such activities, but not manufacturing or other profit marking enterprises.)

Maritime International Ltd. has an Associate Office in Shanghai, through which we can assist in all areas of investment into China.

TAX EFFICIENT INVESTMENT THROUGH A MAURITIUS GBC 1 COMPANY

The Mauritius Double Taxation Avoidance Treaty (DTA) with China dates from 1994 and is heavily used for investment into China. To take advantage of this Treaty, a Mauritius GBC1 (resident) company is required.

A particularly important feature of the Mauritius/China DTA is the 5% withholding tax on dividends plus exempt status (with some exceptions) for capital gains on the sale of shares in the China company (not applicable to real estate). Note that the normal withholding tax is 20%.

While the normal corporate tax rate on GBC 1 Companies in Mauritius is 15%, this can be 100% offset against tax paid by the entity in China. Since the corporate tax rate in China will be more than the above, the Mauritius GBC1 Company will normally pay no tax in Mauritius and only 5% in China on the dividends received.

Note also that there is no withholding tax in Mauritius, on the payment of dividends to shareholders.

• Click Here for Typical Mauritius GBC 1 Incorporation Fees
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• Request a No-Obligation Quotation for a Mauritius GBC1 company
• Contact us for more information on Investment in China

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