Nov.10 – China’s nursing homes are in serious shortage, China’s elderly care industry is facing enormous challenges. There are more than 200 million senior citizens in China, and 50% of them are “empty-nesters” living alone in villages.The number of beds in nursing homes was only 3.9 million in 2012. By 2050, the elderly population will reach 400 million. China’s elderly care industry is highly attractive for investment.
High speed investment opportunities in China’s elderly care industry
China is still in the stage of developing to manage the elderly care industry, China major labor force in the past decades are now growing older, this age group of Chinese people is the major task of China’s elderly care industry. To begin with, the State have to learn to cope with the aging situation, nursing home is on the front line for investment.
First of all, China’s lack of management techniques and elderly care professionals, that have made it difficult for domestic private nursing homes to provide high-quality services. The reason for that is China is dominated by relative younger aged generation group; now Chinese old labor force is getting aging day by day. The situation of age composition shifts toward older. The reality is that “State-owned nursing homes funded by the government cannot meet the rising demand for care; this huge potential market will attract more foreign investment. One of the favors is that) private nursing homes, including foreign-invested nursing homes shall be exempt from business tax (BT).
China’s elderly care industry gets double attention with several favors
There are several favorable policies from Chinese government on the subject of China’s elderly care industry. Some provincial governments like Jiangsu administration already released related incentives on April, 2014, such as favored land policies, and fiscal support for construction projects for investors, which will be applied to both domestic and foreign-invested nursing home.
One of the favors is that private nursing homes, including foreign-invested nursing homes shall be exempt from business tax (BT). Furthermore, eligible non-profit nursing homes in cities shall be exempt from corporate income tax (CIT), property tax and land use tax; and Non-profit nursing homes shall be exempt from administrative fees; other nursing homes shall pay administrative fees at 50 percent of their normal rate. Additionally, fiscal reward of RMB 1 million is offered to innovative enterprises engaged in the provision of elderly care services.
To invest in China’s elderly care industry – begin with the fundamentals
How to setup your foreign project in China’s elderly care industry? The Chinese related organization (MCA) has made simple and clear, foreign organizations and individuals may invest in China’s nursing homes (both wholly foreign-owned nursing homes and foreign-invested joint ventures are permitted). To begin with, it is a sequence of the documents you possess, and to follow the registration procedure: has an official name, address, management system and a complete articles of association; meets the technical standards & environmental protection required by Chinese laws; has professional and technical personnel; has over 10 beds; and has enough capital to sustain operations.
To invest in China’s elderly care industry will be one of the largest business sectors of the century in Chinese economy, there has never been such urgent demand in China’s healthcare industry and market as now, from hospitals to elderly care centers, and from ambulance services to post-injury rehabilitation treatments. China already provides chances for Netherlands companies in China healthcare sector. Chance favors those in motion. As an investor, you are required to submit the related documents to meet the criteria of foreign establishment in China (the local governmental organization/MCA). For China Nursing Homes Facilities Industry Report 2014-2017 ; and The Complete List of Chinese Nursing Homes & Aged Care Institutions available upon request, please contact with DCCC, or email to email@example.com