China

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Operating a Business in China

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Equity Joint Venture No minimum capital.	100% foreign owned company. Minimum a partner. Limied to the amount of contributions.	Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Co-operative joint ventures, CJV No minimum capital.	Minimum 2 partners. Limied to the amount of contributions.	Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Foreign investment joint stock company, JSC 5m Rmb, 30 Rmb if foreign capital	Minimum 2 partners. Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.	Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Holding minimum de 30m USD	Minimum 1 partenaire. Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.	Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.

Business setup procedures: For drawing up articles of association, no specifics have been indicated. The capital and the articles of association must be registered with the Provincial Office of Trade and Industry. Deposit of the articles of association and registration are done at the Trade Register. The Business plan must be approved by the authorities before the company can be set up.
The competent organization: Ministry of Commerce

Legal weekly duration: 40 hours
Retirement age: 55 years for women and 60 years for men.
Working contracts: Legal provisions govern the work contracts, the collective agreements and the individual negotiation supplement them.
Employment contract and recruiting conditions formalities are strict, which is not so for dismissal constraints which are rather flexible.
There are 3 types of contracts: the permanent contract, the fixed term contract and the contract for the project.

Minimum wage: No legal minimum salary.
Average wage: Average monthly gross earnings in China is CNY 1,868 (USD 273).
Social contributions: Social security contributions paid by employers: 60%
Social security contributions paid by employees: 11%

Social dialogue and involvement of social partners: The Chinese Communist party recognises only one trade union: "the All China Federation of Trade Unions" (ACFTU). The ACFTU is not an independent trade union, it thus cannot be the voice of the workers.
Unions: All China Federation of Trade Unions (ACFTU)
Labor regulation bodies: Ministry of Employment

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