Conditions and Requirements for Registration of a Chinese Company

I. Investor (Shareholder)
A person above 18 years old who has identity certificate and capacity for civil conduct can register a company.
The following personnel are forbidden to register company:
National public servants, senior staffs of state-owned enterprise and leading cadres of party and government organs as well as their spouses and children cannot invest to establish a company.
The person whose Business License has been revoked for less than three years or bankruptcy liquidation has been conducted less than three years.
Inmate or the crime with sentence execution period less than three years (Less than five years for economic crimes)
The person with no capacity for civil conduct or is deprived of political rights.

II. Company Registration Address
Registration address is required for registering a company, and Housing Ownership Certificate and Rental Agreement should be provided for the registration address (No need of Rental Agreement for self-owned property), and the address must be for commercial or industrial use. Residence cannot act as registration address.

III. Company Registered Capital
The minimum registered capital for one-person limited company is RMB 100,000, which need to be paid off once.
The minimum registered capital for a limited company with two or more shareholders is RMB 300,000 which can be paid and registered by installment. The first payment shall be no less than 20% of the registered capital.
The registered capital must subject to the capital verification of the accounting firm.

IV. Company Composition
The company can establish board of directors and board of supervisors or not. If not, an executive director and a supervisor must be appointed. The executive director may not concurrently serve as supervisor, but the shareholder may concurrently serve as executive director or supervisor.
Legal representative: The company shall have a legal representative, held either by one of the shareholders or by external people.

V. Financial Staff
The company shall have one financial person, either by employing full-time or part-time financial person or by entrusting the finance company.

VI. Basic Account and Tax Payable Account
The company must open a basic account and a tax payment account.

Learn more: Foreign Company Incorporation Requirements

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China is attracting more and more foreign companies, SMEs,entrepreneurs, startups, brands to invest and establish their business entities through reforming various laws and regulations actively. 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. Here SMEsChina is sharing our knowledge and business insights to global enterprises and companies for better learning the regulations and rules of China corporations running and corporate maintaining. All reference and guidance collected by SMEsChina Teams in accordance with the latest implemented laws of the People’s Republic of China on Wholly Foreign-Owned Enterprises ( WFOE ), Joint Venture ( JV ) and Limited Liability Company ( LLC ), Limited Liability Partnership ( LLP ), and other relevant and officially promulgated regulations and rules on the corporation formation and registration of industrial and commercial enterprises and related IP laws, immigration and resident policies ( VISA ), tax laws.

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