Best Company Type for Solo Work Studio Registration
Based on the materials reviewed, here's how your annual income of 100,000 RMB would be taxed under different structures:
● Individual taxpayer: 33,000 RMB in taxes
● Sole proprietorship: 500 RMB in taxes
● Regular limited liability company: 2,800 RMB in taxes
We also recommend using your hometown residence address, which simplifies future audits and tax filing while saving you registration fees (otherwise you'd need to rent an address). Registering at your hometown home typically takes just two or three days back home—local governments now offer one-day processing. Doing it yourself costs virtually nothing: three official seals run about 200 RMB, and a company signboard for the bank account setup costs only a few dozen RMB. Choosing a local commercial bank is usually free. You can then use your own company to pay your social insurance, which saves you the agency fee if you're a freelancer.
The running-errands process takes about two days—one day to pick up the business license and another for the corporate bank account. Call ahead to confirm requirements beforehand; it saves significant time. Also, the first round of tax and accounting registration usually requires an in-person visit, but not thereafter.
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Extension:
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