Charges and Fees(For Reference Only)

Basic Expenses

Main Expenses and Costs Involved in Foreign Investment in Dongguan

NO.

Items

Contents

RMKS

1-1

Land use Land acquisition method The period of land use rights under the regulations of Dongguan Bureau of Land and Resources is 50 years.

* There are certain differences in the costs for all towns in the city and various industrial zones; in case of particular conditions, related cost may be determined through negotiation.

Land acquisition cost About 384 Yuan m2 Bidding, auction and listing for industrial land use, lowest starting price
Land lease method

Various towns construct factory buildings as requested by investors and lease them to investors.

Land lease expense

2-3 Yuan/ m2

Standard factory specs About 70m (L) X 20m (W) X 4m (H), three-storey building, loading capacity of about 500~700kg/m2
Standard factory
lease expense
About 8~10 Yuan/ m2

1-2

Factory construction Building condition Upon the completion of land acquisition, the owner may appoint the constructor.  
Construction time About 6 months from the enterprise establishment to the completion of construction.
Construction expense About 600 Yuan/ m2 for standard factory

1-3

Electricity expense 0.62~~~0.82/kwh (for industrial electricity use), see the Link Slightly different for various towns

1-4

Water expense 1.1~~1.5 Yuan/m3 (for industrial water use) Slightly different for various towns

1-5

Sewage discharge expense 0.80 Yuan/m3 (reference value)  

1-5

Communication expense

Initial installation cost of
ordinary phone
300 Yuan/line, basic monthly rental of 18 Yuan/month  
Call cost of ordinary phone Local call

0.22 Yuan for the first 3 min and hereafter 0.11 Yuan/min

Domestic long-distance call 0.07 Yuan/6s

International long-distance call

0.80 Yuan/6s

Long-distance call to Hongkong, Macao & Taiwan

0.20 Yuan/6s

ADSL Virtual dial-up Access fee: 400 Yuan/line 90 Yuan/60h Lowest charge
Dedicated line Access fee: 1000 Yuan/line 9,000 Yuan /month
ISDN Access fee: 300 Yuan/line 4.20 Yuan/h  
VoIP call cost Domestic long-distance call 0.30 Yuan/min  
Call to Hongkong, Macao & Taiwan 1.50 Yuan/min
Call to USA & Canada 2.40 Yuan/min

Call to UK, France, Italy, Germany, New Zealand, South Korea, Japan, etc

3.60 Yuan/min  
Call to other countries and regions 4.60 Yuan/min  

DDN Monthly rental

(unit: RMB)

Rate (Bps)

64K

256K

1M

Local call

2000

3200

7500

Domestic long-distance call

3500

5500

9000

Call to Hongkong, Macao & Taiwan

8700

13300

23800

Call to other Asian regions

29500

44500

83000

Call to Europe, America, Australia and Africa

30500

45500

86000

Initial installation cost: 1000 Yuan/terminal
Initial installation cost: 2000 Yuan/terminal

1-6

Labor cost

HR

Abundant human resources from Guangdong Province and adjacent provinces gather in Dongguan (over 5 million migrant labors, about 0.3 million high-quality talents as well as middle and high-level management and engineering technical personnel)

 
Language Mandarin, Cantonese
Average monthly salary

University graduate: over 1500 Yuan/month; junior college graduate: 1000 Yuan/month; common staff: about 800 Yuan/month; experienced staff and staff of over department head: over 2000 Yuan/month.

Comparison between lowest monthly salaries:

Dongguan: 920 Yuan

Guangzhou: 1,030 Yuan

Bonus

Year-end double pay

 
Overtime pay The overtime pay in ordinary times is calculated based on 1.5 times of the original salary; 2.5 times in weekends and 3 times in holidays and festivals. As provided by the State
Board and lodging Borne by the enterprise General
Employment mode On a contractual basis, the labor contract will be signed after 3-6 months of probation period
Working time limit 40h/week As provided by the State
Overtime limit 36h/month
Social insurance premiums Endowment insurance 18% of the before-tax salary, including 10% paid by the employer and 8% paid by the employee As provided by the State
Work-related injury insurance 0.5%~~1.5% of the before-tax salary borne by the employer
Maternity insurance 0.5% of the before-tax salary borne by the employer
Unemployment
insurance
2% of the before-tax salary, including 1.5% paid by the employer and 0.5% paid by the employee
Medical insurance 2% of the before-tax salary, borne by the employer

1-7

Parts & accessories purchase

Electronic products and parts gather together; 95% of PC parts and peripherals can be purchased from local suppliers.

 

1-8

Time of handling procedures for the
business license

Within 1 month after necessary instruments are prepared