Is it's legal to make money in China and then bring a large sum of money back to England?

Question

e.g. taxes and money restrictions etc

Answer 1

yes, there are only two ways of doing this
1, stash it in your suitcase and hope no one will search you
2, send it through an account preferably HSBC in to an account you have in the uk (if you have one) but pay the taxes and charges which can be quite a lot!!

it cost my fella $150 hkd to send £1000 to me in england

Answer 2

Large Sum of Money = How Much????? Millions of RMB??? or just 100,000 RMB???

If you make money legally in China then you can, of course, bring part of the money back to England.

Before you decided to set up a business in China, you better go to consult the lawyers / accountant firms about the details. Especially regarding to the TAX rate for the trade / business you would do in China. Different trades have different tax rates. Basically, you have to pay a Business Tax from 5% up to 20 some % plus 8% to 10% or more income tax, total 13% - 30 % or up. It is subject to which city you would register your business, the tax rate may be higher or lower.

If you're going to open a Spa or a KTV lounge or a Jazz club in Shanghai, you would have to pay a lot higher tax rate then opening an accounting consultancy company.

It is a very complicated process for a foreigner to apply for a BR business registration (100% own by that individual), however, if you married a local Chinese woman there and will form a partnership company with her relatives, then it would be a lot easier. The investment money you need to start with is a lot lower as well.

Basically, Chinese Government does not encourage anyone to bring the money out of China, each person can only bring maximum RMB20,000 to leave China each time.

My father bought some land / buidlings in a city in Guangdong and rented them out, he puts the money into his local bank accounts and brings back not more than RMB20,000 to Hong Kong every month.

Answer 3

It is not so much what you know but who you know. If you make the right connections anything is possible in China. But keep your wits about you as you would be exposing yourself to possible prosecution if it happens to be a lot of money. The Chinese authorities restrict the amount of money you can exchange.

What you could do is just reinvest it in a joint venture. China is one of the fastest growing economies in the world and that means excellent possible returns. If you cannot bring it all back with you then you have nothing to lose. But as with anything, even legal ventures, it is who you know. Remember this word - guangxi ( pronounced gu-ang-shee ) - it means having connections and it is the most important thing for Chinese.

They will want to get to know you because you are a westerner but if you prove to have no or little guangxi, especially here in the UK, they will lose interest.

Answer 4

There are restrictions for how much cash you can leave China with, but I don't know what they are. Also, generally, there are restrictions for how much cash you can bring into a country, but again, I have no idea what they are for England. For the US, I think it is 10,000, and then you have to declare. Of course, they probably wouldn't know. I brought my cat to China, and they didn't even look twice when I went through customs. (This was a couple of years before SARS.)

Also, I don't know anyone who gets paid in foreign currency here, not directly. I get USD deposited into my US bank every month, but because of this, I am not allowed to exchange RMB for USD. You will probably have trouble changing all your money back into pounds before you leave. The university students are allowed to get foreign currency.

Answer 5

Yes of course provided you have paid all taxes due on earnings in china.

A smarter choice would be to register a company in Hong Kong and keep your bank accounts here for doing business in the mainland.

There is no restrictionso on the amount of legally obtained money that can be transferred out of Hong Kong and banking faclities here are first class, dont trust the mainland Chinese banks with your money.

Answer 6

About taxes and stuff I saw you already got detailed info. I just want to comment that, if you are paid in RMB is not easy to change to foreign currency unless you go to black market to buy US Dollars or you keep bank receipts of the original money exchange (FCY to RMB exchange receipts).

The policy is simple. You can bring money to China, but is not that easy take it out of China. Hope it can help you.

Answer 7

in most countries it is illegal for a foreigner /visiter to work and earn money..only those with the work permit can do that.and then there r limits on the amount of money one can carry from one country to another. the best way to find out be4 doing something like that is to go to their govt official websites.these websites povides info on all these matters.

Answer 8

all fine and dandy, unless you happen to be chinese who was born there..
there was a story a few years back about some chinese guy who won a huge sum of money and was not allowed to leave the country esp with the money..

Answer 9

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Answer 10

Yes, you can, but you must pay taxes on it.

It's better to have it transferred into your account than to carry it with you.