In 2017, China released some tremendous changes in policies related to trading environments, bank accounts and Chinese visas. Some foreigners have ran into issues understanding the new measures, but we have answers for you!
Do you have these problems?
1. Your Chinese or HK bank accounts got investigated or shut down. Your money can not come in or go out of China in a legal way.
In China and Hong Kong, two regions further regulating their banking industries and trading environment, numerous bank accounts have been shut down or frozen, due to improperly received payments.
Many people are constantly running into problems with bank account transactions, such as the following:
Transfer Gets Interrupted
Usman has been working as a trader for more than 10 years, he has an offshore bank account with China Merchants Bank (CMB) to receive foreign exchanges. However, one of the transfers from a client was interrupted and held by the bank,due to the fact the country of cargo origin was different from the nation making the payment.
Offshore Bank Account Gets Closed
Mike has an offshore bank account after registering a Hong Kong company. Recently, the bank gave him numerous warnings, requesting he opena mainland company to connect to his offshore bank account. He was told his account would be shut down if he didn’t heed the warning.
Higher standards in banking drive the trading environment to be more regulated, more verifications for bank account holders, more difficult to open bank accounts.
International transactions constantly suffered from such interventions. This makes it more difficult to receive foreign currencies, exchange foreign currencies into Renminbi and make overseas transfers.
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2.It's getting more
difficult to apply for a Chinese work visa or get your work visa renewed.
In China, work permits are issued by the Foreign Experts Bureau, and visas are released by immigration. Before giving permission to ones' application, they have the power to request an overall verification of applicant's background and their companies.
For companies, all the trading data in China Customs must be perfectly consistent with each income or expense in their bank account transfer record.
Companies that have very little in the way of records from the database of China Customs, banks and the Tax Bureau are called ‘zombie’ companies. These zombie companies have a very difficult time passing verification and their lack of records generally results in a failure of work permit/visa application.
The common old trading way of buying documents is illegal!
Buying documents is an unsafe way of trading, spending a few hundred Yuan to pay for an agent, and the agent uses the name of an unknown company to export for you. In this activity, the agent can use a fake VAT invoice to apply for an export tax refund and cheat the government.
Buying documents is one reason why a trading company becomes a zombie company, because its trading activities are not logged in the China Customs system under the appropriate name.
Money has to return back by personal bank accounts or underground agents. This is the most common, but illegal, way of doing trading business in China. That is also one of the reasons why some foreigners' bank accounts have been frozen and fail to pass the work permit application.
In 2018, China releases new policies to regulate the trading environment. What is the best way of running a trading business? How can you freely and safely receive foreign currencies and exchange foreign currencies into Renminbi? How can you run a legal business and get a Chinese work visa?
All solutions are in our seminar, come check it out.
New Year! New Trading!
2018 Export Seminar
Free entry with limited seats. Please make a reservation in advance. Contact your consultant or call (020) 8355 5515 for a reservation.
Language: English
Date: January 16, 2018 (Tuesday)
Time: 13:30-17:00
Venue: Room Diamond 9, Crowne Plaza Hotel (339 Huanshi Road East, Yuexiu District, Guangzhou) 广州市环市东路339号中心皇冠假日酒店
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