Tax Trap! 5 misunderstandings, how to choose the right company registered address

Mondo Finance Updated on 2024-03-04

Knowledge point 1: Say goodbye to the Hainan registration boom!

There are various voices on the internet, and many people suggest registering a family company in Hainan to enjoy the double reduction policy. But this is wrong! Hainan's double reduction policy clearly stipulates that only enterprises that actually conduct business in Hainan and pay taxes can enjoy the preferential treatment. If your family company is only set up for tax avoidance and there is no actual business taking place, then the domicile of Hainan will not bring any tax advantages.

Knowledge point 2: Restrictions on the operation of family companies

Although a family company is set up to reduce personal income tax, it is not used to run a business itself. Even if you are registered in Hainan, if you have no actual business dealings and tax payment, you will not be able to enjoy the double reduction policy.

Knowledge point 3: Select a potential city to register

When a family company makes a profit, it is usually used to buy assets such as real estate and land. Therefore, it is crucial to choose a big city with investment potential to register a company. For example: I made 100 million yuan, I may not invest in Foshan, I may have to go to Guangzhou to invest, if my family company is registered in Foshan, I may not be qualified to buy land and property in Guangzhou. Therefore, family companies should choose big cities with investment potential to register.

Knowledge point 4: Firewall companies do not have to pursue tax depressions

For risk isolation companies (firewall companies), there is no need for cash withdrawals or dividends every year, so there is no need for preferential policies and income tax incentives in tax depressions.

Knowledge point 5: The right time to find a tax depression

Only if the business company conducts business, has business dealings, and has to pay enterprise income tax every year, we will go to the tax depression. Because the policy of the tax depression is originally fluctuating, there is one this year, and it may be canceled next year, so you see that you put this company even if it is a company, you register it in this tax depression, and after three years, this place will no longer have this tax policy, and you have to move your company out, which will bring additional costs and troubles.

Ending: Be wary of misleading, choose the place of registration wisely, and don't be misled to register a company in Hainan! The wrong place of registration is not only a waste of money, but it can also lead to not being able to enjoy the tax benefits that you deserve. Make sure you choose the place of registration according to your actual business situation to avoid increased tax costs in the future.

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