CIL Group Ltd

CIL gives you the scope of a RO set up in Shanghai. Established in 2001, CIL - CHINA INCORPORATIONS LIMITED is a professional company registered in Samoa with office in Hong Kong and Shanghai. CIL’s content of services include tax planning, offshore company formations, nominee shareholder(s) or director(s), bank account, trading, document legalization, due diligence, Chinese local company formations, and even international wealth management and so on. CIL has different types of offshore companies for international business and tax planning. For example Hong Kong, although not typically regarded as a tax haven, has a favourable tax structure. Properly managed Hong Kong companies can be utilised for undertaking offshore business and international business without paying tax in Hong Kong.

CIL follows all the rules laid down by AIC and works accordingly. CIL determines the taxable income of a representative office as put by AIC. There are three methods to determine the taxable income of a Representative Office (RO): the actual income method, the deemed income method, and the cost-plus method. CIL even maintains document legalisation to avoid any complexity in setting up RO.

A RO set up in Shanghai is not considered an independent legal entity but rather an extension of its parent company. Accordingly, the parent company must bear all of the representative office’s legal liabilities and debts. The foreign company should carefully safeguard the Representative Office’s financial and a corporate seal to ensure that they are not misused. CIL ensures there is no malfunctioning in the process of RO set up in Shanghai. The authority of the Chief Representative is governed not by Chinese foreign investment law, but rather by the parent company’s jurisdiction of incorporation. However, the parent company is still subject to the jurisdiction of the local Chinese courts with respect to all contractual issues, including property rights.

CIL effectively maintains that the RO also has the legal obligation to deduct from its payroll income taxes and pay them to the local tax offices. CIL makes sure that the non-taxable activities of RO are recognised by application for a tax exemption certificate to the tax authority. This saves the client from unnecessary expenditures. In addition, the RO and all the staff have to bear certain social security contribution respectively including pension fund, hospitalization, unemployment, injury at work, and birth planning insurances.