Guidance of China Company Formation

LLC: Limited Liability Company

Selecting the right structure of China Limited Liability Company and forming a company as a legal business entity to invest in China market. If you are seeking a local expert or consultant to obtain the best solution and results to save time and costs, in fact, you are the right place. SMEsChina is assisting global enterprises growing and expanding their brands here.

You can register your Chinese company anytime if you have everything you need to set up, and in the future also can use a registered company to run a business here. Generally speaking, corporate shareholders need to agree forming a local China company and to sign articles of association and appointment documents and relevant other legal files to Bureau of Market Supervision.

20 Workdays Formation a Chinese LLC

  • Incorporation a suitable company name.
  • Find a registered address for China LLC.
  • Set up a structure, shares of shareholders.
  • Appoint an executive director (legal representative).
  • Appoint a company supervisor and secretary.
  • To sign articles of association and official files.
  • Work out a list of shares for Chinese LLC forming.
  • Appoint a financial executive to register taxpayer.
  • Application forms for certificate of incorporation.

Step by Step for Setting up a Limited Liability Company

Step 1 Company Type

You can get in touch with our online consultants to check if your China limited liability company can be approved easily and get more suggestion about setting a private limited company, whatever your company type is, you must abide by Chinese enterprises laws and regulations, let’s start to select a suitable company type first.

Step 2 Incorporating Chinese Company Name

If you are intending to set up a China company, remember that you have to choose an available Chinese corporate name to submit local Bureau of Market Supervision.

China corporation name can be both languages and cannot be the same as another registered and existing Chinese trademark, certainly also cannot be the same as other local registered brands or enterprises. The more guidance you may refer to this useful link: Company Name Requirements.

Step 3 Decide the Members of the Board of Shareholders

A China limited liability company needs one shareholder at least and same time shareholder can be the executive director, as known as legal representative. And all shareholders have to list the shares of Chinese LLC forming and can get dividends from own shares.

Step 4 Structure of Company Key Positions

In terms of Chinese company laws and enterprises regulations, members of the board of shareholders as the largest authority to sign a series of appointment documents and appoint an executive director ( legal representative ), and company supervisor, no nationality restrictions for these key positions and manage structure.

Step 5 Find an Address for Company Formation

Company address will be printed on the business license and published on the Chinese government resource website, find an available company address is easily in China, you can rent a physical office or ask an agent to provide virtual registered address, like SMEsChina offers that. Learn more: Reasons of Using a Virtual Address

Step 6 Select Business Scope and Activities

China LLC formation needs to select details business activities from the NIC (national industry classification) and submit a series of legal documents for different industries and business activities. Due to the cultural difference that most foreign entrepreneurs can not find out a standard list for choosing a suitable business scope for their company formation, because there are too many industrial terminologies to translate, therefore, SMEsChina has made a standard list for your reference. Selecting Business Scope

Step 7 Confirm the Registered Capital

The minimum registered capital is 20,000 USD or Euro for foreign investors who want to establish a Chinese business. And Chinese companies’ laws stipulate that all shareholders must inject the capital amount within 30 years after business license be approved. Read more: Company Registered Capital .

Step 8 Prepare Required Documents

Except for regular files of registration and official forms issued by the local Bureau of Market Supervision, the process of company registration needs you collecting other documentary evidence from your home countries for shareholders, executive director (legal representative), and company supervisor. You can refer to this useful link: Foreign Company Incorporation Requirements

FAQs: About Formation a Company as LLC

From our experience, it is too difficult to enter China to complete the procedure of limited company formation for non residents, although come here in person can make the process faster, but complex procedure of tourist or business visa still affect your China business planning.

Now forgetting it, Chinese company registration system has reformed, and if you decide starting to set up a Chinese LLC (limited liability company), you can do that anytime, wherever you are.

This is a frequently asked question from our career from global clients, since 2014, China industrial and commercial administration bureau implemented new policies in business registration system and regulation of registered capital, the latest rule is 20,000USD or Euro for foreign investors, some industries reduce to a lower requirement of capital (before 2014, foreign enterprises need to set up the minimum capital is 150,000 USD), like services, consultancies.

Certainly, some special regulated industries also need to set up more investment capital than this amount, like dangerous chemicals, international freight forwarding agent, new energy auto, manufacturing, and other special industries.

Depends on what industry you want to set up, most of general businesses can use a virtual registered address to obtain company licenses and corporate bank account, but some special industries and corporate types must use a physical office to obtain approval, such as representative office, or a coffee shop, a food retail store, as well as special industries like: liquor wholesale, restaurant, laboratory and so on.

If your China LLC does import and export businesses in the future, you should register additional licenses and permits for your Chinese company from the China Customs with e-port system. Do not worry in this process, it’s easy to get approval.

With the difference of company name and business activities, you have to choose a standard industry for incorporating an LLC in China, main industries include: service and consulting, design consultation, engineering and construction, domestic and international trading as import and export, architectural consulting, technical installation and services, IT, e-commerce, creative culture, manufacturers, auto and components etc. You may get in touch with our experts to obtain a suggestion for selecting a standard industry for your limited liability company formation.

Depends on your structure of shareholder for China LLC, such as a Wholly Foreign Owned Enterprise (WFOE) as known as a WOFE (wholly owned foreign enterprise) and FICE (foreign invested commercial enterprise), JV (sino-foreign joint venture), partnerships, offshore company, holding company, domestic shareholders.

And other organizational types like: self-employed shops, sole trader, representative office, branch office, non-profit organization, liaison office.

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Check if setting up a private company is right for you, how you launch a corporation depends on what business activities your company does. It can also affect the processes of registration and different requirements for your preparation.

SMEsChina focus on the growth of enterprise and providing a variety of business solutions in the area of strategy consultancy, business registration, company formation, China company formation LLC, finance and audit services, HR and payroll, corporate bank account, resident permit, immigration and visa, trademarks and legal compliance. If you have everything to set up a private business in Mainland China, you can get in touch with our teams to get more useful information and online guidance.

More than 47 million companies and small medium enterprises have registered their business entities in mainland China and over 3.5 million new enterprises are incorporated during each financial year with comfortable process of registering companies due to China government implemented new rules and regulation on business registration laws since Oct. 2014. That’s Why SMEsChina is Here.