Brief of Forming Advertising Companies in China
If you are planing to register an advertisement company, here is a right place for your studies, Chinese advertising companies can be set up easily and quickly since the new foreign investment laws implemented the new regulations of culture and advertising industries for its expand openness.
5 years ago, if you set up an advertising company, need to provide more requirements to obtain the business permits on advertisement industry, but now, everything can be launched comfortably.
The minimum registered capital of advertisement business is 20,000 USD for foreign shareholders, and you can inject the registered capital within 30 years since the reforming of Chinese registered capital system.
And, also, the whole process just needs 20 workdays. You can obtain the business license and bank account by SMEsChina’s assistance and support.
The Business Scope of Advertisement Companies
Traditional angle, advertising business can obtain the approval of business activities as: advertising design, production, publishing and agency, also you can add other business activities if you are setting up a local business, such as: cultural and artistic exchange and planning, exhibition services, conference services, computer graphic design, multimedia design, etc. around the business scope of advertising and cultural industries. SMEsChina platform has listed 5 popular samples for your reference, you can link to the page to learn, <business scope of advertising company>, also if you want to research more cross-industry business activities, you may link our page <a collection of guiding corporate business scope> to get more details.
Brief List of Requirements of Setting up Advertising Businesses
|Key Structure of the Company:||Required Documents you have to prepare in your home country:||Remarks:|
|Corporate Shareholder||Notarization and authentication documents for the certificate of registration of foreign parent company issued by the Chinese embassy. Learn more: Embassy Notarization Authentication Documents||2 sets, bilingual|
|Individual Shareholder||Digital photo, notarization and authentication documents for the passport issued by the Chinese embassy. 16 years old at least. Learn more: Embassy Notarization Authentication Documents||2 sets, bilingual|
|Legal Representative – Chinese People||Original ID card, 16 years old at least. Digital photo.||none|
|Legal Representative – Nonresident||Digital photo. Notarization and authentication documents for the passport issued by the Chinese embassy. 16 years old at least. Learn more: Embassy Notarization Authentication Documents||2 sets, bilingual|
|Supervisor – Chinese People||Original ID card, photo, 16 years old at least. Digital photo.||none|
|Supervisor – Nonresident||Passport copy, photo, 16 years old at least. Digital photo.||none|
|Financial Manager||Local ID copy, photo, 16 years old at least. Digital photo.||none|
How Long to Form the Advertising Companies
Do not hesitate, please, just need 20 working days. Including name approval, documents signing, certificate and business license application, company seals application and open bank account.
Timeline of Registering an Advertisement Company
|Description of Each Step:||Time Required:|
|Chinese advertising company name submit, search and obtain approval||3 working days|
|Download and signature of the required documents of company formation (see below) and courier to SMEsChina||5 working days|
|Obtain the certificate of foreign owned (investment) enterprise and the certificate of business registration (known as: business license)||5 working days|
|Apply for the company stamps (known as corporate seals) and obtain approval||2 working days|
|Open a local corporation bank account and internet banking||5 working days|
That’s all, congratulations, your Chinese advertisement company has been obtained the permission to operate and run businesses in mainland China, you can use it to do local or oversea transactions confidently. In mainland China, the certificate of registration also known as business license, and China market and supervision authority has implemented new version of the business license since the reforming of business registration system, you may link our previous post <5-in-1 business registration certificate> to get studies.
How to get started to set up a company?
Before starting the process, SMEsChina team suggests you to learn another guidance if you are nonresidents, <how to open a company in China for foreigner>. If you have already decided your industrial selection is a software company, or an IT business, and to operate the related software sales, installation, research and development, and technological services in the mainland China. SMEsChina team has posted related guidance on starting a Chinese limited company, you can view the following links to get studies. And after you learning the useful guidance from below links, you can download the legal files and forms of company registration, and filling in the related registration information and signing these documents to SMEsChina offices.
|Steps:||Topics of Study:||Links of Reference:|
|Step 1||Decide what types of software company, depends on your key structure of corporation (shareholder’s structure).||Selecting a company type|
|Step 2||How to choose an available company name with bilingual for your private limited company.||Naming rules and requirements|
|Step 3||List detail business activities from 10 industrial categories.||Selecting business scope|
|Step 4||Set up the registered capital for your limited company.||Company registered capital|
|Step 5||Set up core people of your local corporation, and key positions.||Decide corporate structure|
|Step 6||Required documents you have to prepare in your country.||Documents required to register a company|
|Step 7||Prepare notarization and authentication documents issued by China embassy.||Notarization and authentication documents|
|Step 8||Download application forms and legal files and after filling and signing, courier to SMEsChina offices.||Company formation documents download|
Price Table of Advertising Company Formation
- Government Costs
- Certificate of Registration
- Business License
- Virtual Business Registration Address ( 12 months )
- Annual Tax Compliance ( 12 months )
What Taxation for Advertising Corporation
Different from other traditional service industries, the advertising companies need to pay extra tax, we call it additional tax, known as: cultural construction tax, 3%.
SMEsChina website has posted a guidance page <what is the tax rules in China for a foreign company>, from the taxation table, you can learn the tax rules for 2 taxpayers, small scale taxpayer and general taxpayer (VAT qualification). Advertising businesses as the service industry, if you plan to apply for the advertising invoices to local customers, you have to pay another 3% (cultural construction tax).
For example, Google Ads as foreign brand registered in the mainland China, if the company is a small scale taxpayer, you have to pay 3% income VAT and plus cultural construction tax 3% to local tax authorities.
If Google China company is a general taxpayer (VAT qualification), the company issues the local official invoices to customer, has to pay 6% (service industry), plus 3% cultural construction tax.
Other studies you also might be interested:
Advertisement Business Registration Services | SMEsChina.com
4,950 USD to register a local business to operate advertisement activities and approval the permission to run advertising design, agent, publish services.
Service Type: Advertisement Company Registration Services