Profit Repatriation - China Fortune Investment Group
Profit Repatriation
How and how much a Foreign Invested Enterprises can repatriate profits of their business in China is a major concerns of investors who want to invest funds. This is mainly due to two reasons, the first of which is that the Chinese currency is not free-transferable in the world and the Chinese government has strong control over the exchange between RMB and other currencies. The second reason is there are many policies and regulations relating to transfer the profits outside of China. The regulations consist of special approval and implementation procedures which are difficult to understand for foreign investors. Additionally, the rules and regulations are regularly changed by both central and local government.
This issue of profit repatriation needs to be considered and advised on starting from the initial structuring stage of Joint Venture, Merger or Acquisition. It should be ingrained to the business investment forecast as well as tax planning scheme. ChinaFIG consultants have good command of PRC laws and understands the detailed and updated procedures in repatriating profit from China and have the ability to establish contacts and negotiate with the authorities in order to get profit repatriated at lower cost.