2. Company tax amount: Business Tax: For companies selling goods, a value-added tax of 4% of the invoiced amount is levied; for companies providing services, a business tax of 5% of the invoiced amount is levied. Corporate Income Tax: A corporate income tax of 18-33% is levied on the pure profit of enterprises. For small companies with little profit, it is generally 18%. Accounting is very important for corporate income tax. If your accounts show a lot of profit, then the tax rate will be high. Therefore, ordinary purchases of equipment should be invoiced, and tickets for meals and transportation should be kept as they can be considered as operational costs of your enterprise. 5. Obtain a "Bank Inquiry Letter" from an accounting firm: Contact an accounting firm to obtain a "Bank Inquiry Letter" (must be original, with the accounting firm's official seal). If you are unsure, you can look at classified advertisements in newspapers, where there are many advertisements for accounting firms. The difference between the two types of taxes: Business Tax is levied on turnover, regardless of whether you make a profit or not, as long as a transaction occurs and an invoice is issued, tax must be paid; Income Tax is levied on profits, which are the remaining funds after deducting various costs from turnover. Tax is only levied if a profit is made. Finally, start operations. Remember to file taxes with the tax authorities on time every month, even if no business is conducted and no tax needs to be paid, a zero declaration must still be made, otherwise a fine will be imposed. If you and your friends or family members jointly invest in starting a business, you can choose a regular limited company, with a minimum registered capital of 30,000 yuan; if you are the only shareholder, then choose a one-person limited company, with a minimum registered capital of 100,000 yuan. Two, steps to register a company: 1. Name approval: Go to the Administration for Industry and Commerce (AIC) to get an "Enterprise (Business Name) Preliminary Approval Application Form", fill in the company name you plan to use, and the AIC will search online (internal network of AIC) for duplicate names. If there is no duplicate, this name can be used, and an "Enterprise (Business Name) Preliminary Approval Notice" will be issued. The fee for this step is 30 yuan. (30 yuan allows you to search for 5 names, many names are duplicates, so common names don't need to be tried, saving unnecessary expenses.) 11. Open a basic bank account: With the business license and organization code certificate, go to the bank to open a basic account. It is best to go to the same branch where the capital verification was originally processed, otherwise, an additional 100 yuan fee for the capital verification account will be charged. Opening a basic account requires filling out many forms, so it's best to bring all necessary documents, including the original business license, ID card, organization code certificate, company seal, and legal person seal. When opening a basic account, you also need to purchase a password device (since the second half of 2005, most banks have this requirement), which costs 280 yuan. In the future, when your company issues invoices or makes transfers, the password device will be needed to generate passwords. 9. With the business license, go to the police station-designated seal engraving shop to engrave the company seal and financial seal. These seals will be required in subsequent steps. 3. Write the "Company Articles of Association": You can download a sample of the "Company Articles of Association" from the AIC website and modify it accordingly. All shareholders must sign at the end of the articles. 7. Process the capital verification report: With the bank's shareholder contribution form, the stamped inquiry letter, the company articles of association, the name pre-approval notice, the lease contract, and the property certificate copy, go to the accounting firm to process the capital verification report. Generally, the cost is around 500 yuan (for registered capital below 500,000 yuan). 10. Process the enterprise organization code certificate: With the business license, go to the Technical Supervision Bureau to process the organization code certificate, which costs 80 yuan. Processing this certificate takes about half a month. The Technical Supervision Bureau will first issue a preliminary acceptance code certificate, with which you can process the subsequent tax registration certificate and the basic bank account opening procedures. 12. Process the tax registration: Within 30 days of obtaining the business license, go to the local tax bureau to apply for a tax registration certificate. Regular companies need to process two types of tax registration certificates, namely, state tax and local tax. The cost is 40 yuan each, totaling 80 yuan. When processing the tax registration certificate, you must have an accountant because the tax bureau requires the submission of materials including the accountant qualification certificate and ID card. You can hire a part-time accountant first, and generally, the salary for a part-time accountant for a small company just starting out is about 200 yuan. One, choosing the form of the company: A general limited liability company has a minimum registered capital of 30,000 yuan, requiring 2 or more shareholders. Since January 2006, the new Company Law allows a single shareholder to register a limited liability company. This special type of limited liability company is also known as a "one-person limited company" (but there won't be the word "one-person" in the company name, the business license will note "natural person solely owned"), with a minimum registered capital of 100,000 yuan. 13. Apply for invoice purchase: If your company sells goods, you should apply for invoices at the State Taxation Administration; if it is a service-oriented company, then apply for invoices at the Local Taxation Administration. There are two points you may be particularly concerned about: There are also many other types of taxes, but they don't amount to much money, mainly the two mentioned above, especially the corporate income tax which is quite high. 1. A company must establish a sound accounting system. You might worry that you don't know how to do it. At the beginning, when the company has little business, the workload for the accountant is also very small. You can hire a part-time accountant who can come to your company once a month to help you set up accounts, taking only two or three days. Pay them around 200-500 yuan in salary. 2. Renting: Rent an office in a dedicated office building. If you have a factory or office space yourself, that's also acceptable. Some places do not allow offices to be set up in residential buildings. After signing the lease contract, ask the landlord to provide a copy of the property certificate. After signing the lease contract, you also need to buy stamp duty at the tax bureau, at a tax rate of one-thousandth of the annual rent. For example, if your annual rent is 10,000 yuan, then you need to buy 10 yuan worth of stamp duty, which should be affixed to the first page of the lease contract. Anywhere else that requires the lease contract, you need to use the contract copy with the stamp duty attached. 4. Engrave a personal seal: Go to a seal engraving place on the street to engrave a personal seal, tell them to engrave a legal person's personal seal (square). The cost is about 20 yuan. 6. Open a company capital verification account at the bank: All shareholders take their portion of the investment money to the bank, along with the company articles of association, the AIC's name pre-approval notice, the legal representative's personal seal, ID card, capital verification money, and blank inquiry letter form, to open a company account at the bank. Inform the bank that you are opening a capital verification account. After setting up the company account, each shareholder deposits the corresponding amount into the company account according to their investment amount. The bank will issue a contribution receipt to each shareholder and stamp the inquiry letter with the bank's seal. Note: According to the Company Law, when registering a company, investors (shareholders) must pay the full amount of capital. This can be in monetary form (i.e., RMB) or in kind (such as cars), real estate, intellectual property, etc. At the bank, you only handle the monetary part of the capital contribution. If you have physical assets or real estate as contributions, you need to have them appraised by an accounting firm before contributing them at their actual value, which can be complicated. Therefore, it is recommended that you directly contribute cash. The Company Law does not care how you obtained the money, whether it is your own or borrowed, as long as you fully pay the capital contribution. 8. Register the company: At the AIC, obtain various forms for company establishment registration, including the establishment registration application form, list of shareholders (initiators), director-manager-supervisor status, legal representative registration form, designated representative or authorized agent registration form. After filling them out, submit them together with the name pre-approval notice, company articles of association, lease contract, property certificate copy, and capital verification report to the AIC. Approximately 3 working days later, the business license can be collected. The cost for this item is about 300 yuan.