20 September 2012 ~ 1 Comment

Malvern Morgan Cars Beijing Issued with ‘Enterprise Legal Person Business License’

Hurrah – Malvern Morgan Cars Beijing has a business license. [We could not register Morgan Cars as that was taken by an anonymous entity.] We are able to conduct this business until 2032. This should give me sufficient time to recoup the investment this business is taking to launch.

Business License

The license means that we can proceed to the next steps for the establishment of our import business. We are making chops of the company, and it is estimated to be finished on 22nd Oct. Then, we will apply for the organization code certificate. After the organization code certificate is issued, we will go on applying for the tax registration certificate which is estimated to be issued on 26th October at the earliest if things go smoothly. With these certificates, we can first open RMB basic account at Bank of China. While applying for RMB basic account, we can apply for State Administration for Foreign Exchange Identity Card at the same time. Then after SAFE IC card is issued we can go on opening the capital account. With this we can take GBP invoices from Morgan Motor Company to SAFE who will review them, and should then approve the conversion of our RMB to GBP.

Once we have the certificate, I shall have the pleasure of managing the tax filing. The tax year in China ends on December 31. It is compulsory to file a report and pay advances monthly or quarterly (monthly for individuals). The date for submitting an annual report and arranging payments is up until May 31. There are fines on arrears. Foreign companies in China are obligated to submit an interim report every three months (advance payments should be paid within 15 days of the end of the quarter).

It is clear that the Government wants to be with us every step of the way.

The corporate tax rate is 25%, with a withholding tax of 10% on dividends. My understanding is that before a company can remit funds overseas, it must demonstrate both its filings and its payment of taxes.

The monies which will arrive on the ledger of the Morgan Motor Company will have travelled quite a few steps over their 5071 miles from Beijing.

One of my challenges is to get that money there when the cars are actually built so that they are not parked for long in the damp winter weather.

While all these are being taken care of, we continue to promote the cars. At the moment they are in Chengdu and will then head to Qingdao for the first ever China Festival of Speed. We are going to sign our next dealer in Qingdao and this 5 day event is a showcase for him with over 80,000 attendees claimed. The Plus 8 and Aero will side alongside the Lotus, Bentley and Lamborghini. I am delighted that we are weaving the Morgan brand into the fabric of the Chinese car fan.

 

Meanwhile our showroom is moving forward, nearly. After some small gift tokens and multiple submissions of the drawings, the designs by our contractor are now lodged with the Fire Department. We signed on the lease in July with a provisional Sept start date. In my diary I have Oct 15th as a soft launch. After some rather nonsensical to & fro with the i-rena property management office about the height of our signage, 8 sets of A4 drawings with multiple chops have been submitted for the approval of the Fire Department. We intend not to cook our cars nor our customers with naked flames, our sole heating element being a microwave, but still the powers that be will check our designs. Their scrutiny will take 2 weeks and then we shall learn of the ‘amendments’ required. We shall be lucky to start work in Oct, which is sabotaged by the October holidays and then the National Congress.

I am now trying to balance out the schedules for cars being built, funds being available to pay for them in the correct currency, import permit being ready so that the cars can enter the country for commercial sale, and a facility to showcase them in.

Oscar, our erstwhile man Friday, raised a concern about opening a showroom in the middle of a Beijing winter when we sell convertible cars. At this rate I am confident that we shall be open in time to welcome the Spring. By which time our tax certificate will be issued, our chops hammered by monthly submissions, and even our import license may have been issued. As we have sold 2 Plus 8’s and have a 44 75thAnniversary and a Roadster due for shipping in November I certainly hope that these are all in order.

At least the girls should enjoy Xmas.  I ordered Morgan pedal cars for them, one purple and one pink. They will be hand painted with the names ‘Halo’ and ‘Amity.’ At least the kids should have fun riding these in an empty, very well located and elegantly designed showroom. Perhaps a kids racing arcade would be another fun business to start...

 

 

 

 

 

 

 

 

 

One Response to “Malvern Morgan Cars Beijing Issued with ‘Enterprise Legal Person Business License’”

  1. Qing Lin 20 September 2012 at 11:57 pm Permalink

    Wow! It certainly IS a fantastic achievement! Congrates to your accomplishment in China: keep up the good work:)

    Ching @joininchina


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