If you want to engage in low financial risk projects, you can opt for an SPV (Special Purpose Vehicle) company in China, helped by one of our agents for setting up a company in China. We invite you to discover in the following lines some details about the SPV company in China, to understand what this structure is used for and what characteristics it presents. We are here to help you open an SPV in China.
| Quick Facts | |
|---|---|
| SPV stands for | Special Purpose Vehicle |
SPE stands for | Special Purpose Entity |
Can be established by | Companies or natural persons |
| Optimal structure for SPV/SPE in China | Wholly Foreign-Owned Enterprise or Hong-Kong Company |
| Recommended for group investors (YES/NO) | YES |
| Is SPV/SPE a separate legal entity? | Yes. SPVs are the optimal choice for certain investments in China for limitation of risk. |
| Raising capital through SPV/SPE in China (YES/NO) | YES |
| Risk mitigation | Through Chinese SPV/SPE, financial risks are isolated. Parent companies facing bankruptcy do not affect such a structure. |
| Transferring assets like mortgage loans or real estate to a Chinese SPV | Available option |
| Nationality of shareholders of an SPV/SPE in China | No restrictions imposed |
| Registered address for SPV/SPE in China | Required |
| SPV/SPE are controlled/verified by | The State Administration of Foreign Exchange (SAFE). |
| Can specific assets be transferred through an SPV/SPE in China? | Yes, assets like equipment, real estate, or an entire business division can be transferred. |
| SPV/SPE in China to create joint ventures | A popular option for international investors. |
| Choosing our Chinese company formation agents for opening SPV/SPE | For: – company registration in China, – paperwork, – collaboration with the local authorities, and many more. |
Table of Contents
What is an SPV company in China?
An SPV company in China is meant to fulfill a certain purpose and in most cases, this structure protects the company from financial risks. In China, an SPV company can be owned by several companies and/or individuals. On the other hand, an offshore SPV company can be established in China given the advantages in terms of taxes and foreign exchange choices available to international entrepreneurs. Here are other aspects of an SPV company in China:
- According to Circular No. 19, an offshore SPV in China can be established by residents in China.
- An SPV company in China can be used as a financing vehicle for round-trip investments. You can learn more about company formation in China and available SPVs from our specialists.
- When you want to open an SPV in China, you must comply with the conditions imposed by SAFE (State Administration of Foreign Exchange) in China.
We invite you to learn more about how to open a company in China and more precisely SPVs from one of our local agents. WOFE in China can also be a business structure option for foreign entrepreneurs. If you want to open a business in another country, such as the Czech Republic, our lawyers can put you in touch with our local partners.
Opening an SPV company in Hong Kong
Many foreign entrepreneurs choose Hong Kong to open or develop their businesses due to the benefits in terms of taxation and more. Securing assets can be done with the help of an SPV company in China, including Hong Kong. Here is what you need to know about SPV company in Hong Kong:
- Isolating business risks can be done through an SPV company in Hong Kong.
- Risk-free projects can be developed in sectors like real estate or infrastructure.
- If the parent company that established the SPV in Hong Kong or anywhere in China goes bankrupt, the respective SPV can continue its activities without being affected in any way.
- With an SPV company in Hong Kong, you can attract various foreign investors. You can get in touch with us if you want to open an SPV in China.
- In Hong Kong, SPV registration as a partnership or trust is allowed.
- An SPV in Hong Kong can be a gateway to mainland China for international investors.
If you are interested in company incorporation in China and particularly an SPV in Hong Kong, do not hesitate to collaborate with our specialists in the field. We are at your disposal with complete information about how to open a business in China.
Accounting rules for SPVs in China
Tax filing and returns are part of accounting for SPVs in China. Our accountants in China can tell you more about the obligations that this structure has and what you must respect in this regard. Contact us for more details about how to open an SPV in China.
Investing in China, always a great option
China is among the most appreciated business destinations by foreign entrepreneurs and investors. Having multiple business opportunities, China is attractive and offers a stable business climate. If you want to open a company in China, you should also know some details about the country’s economy:
- Around USD 18.3 trillion was China’s GDP in 2022.
- Around USD 13,000 is the per capita income in China.
- China is the second strongest economy in the world, after the USA.
If you want to start a company in China, you can opt for our services. On the other hand, if you want to open an SPV in China, do not hesitate to contact our team of specialists and learn more about the procedures involved.
