Foreign Company Establishment in China
No restrictions on foreign residents to set up a business in this fast-growing market, the whole process of business registration is the same as local citizens.
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Joy: Customer Manager
Oversea Company Services
Welcome to SMEsChina platform, here you can learn everything of incorporating a foreign company in China, this guidance includes timetable, prices, requirements and required documents and other useful information, and also provides detail guidance to assist your Chinese company operated confidently and comfortably through our experienced teams. Below is the complete guide on Chinese company establishment as a foreign business entity.
Notably, China is attracting more and more foreign businesses and companies to establish their business entities here through bring technologies, products, ideas and brands to the Chinese market since the implementation of the business registration system and the preferential policies of taxation. With the reforms of government initiatives, incorporate a local enterprise looks like quicker and simpler right now.
Timetable of Foreign Companies Establishment
From our experience, a service industry can be set up within 20 working days, a Chinese trade company needs another 5 working days to obtain import and export permits.
Description of Timeline: | Processing Time: |
---|---|
Submit the application of company name search and registration. | 3 workdays |
Draft out the documents of incorporation and legal forms, files of business registration. | 5 workdays |
Apply for the 5-in-1 business license and the certificate of foreign owned company. | 5 workdays |
Apply for the company stamps, corporate seals. | 2 workdays |
Corporate account opening and activate the internet banking. | 5 workdays |
Import and export permits (The Customs Registration Certificate). | 5 workdays |
Prices of Enterprise Establishment
Our prices include all service package for foreign companies registration.
– Collection, approval, and verify the documentation prepared by customers.
– Offer a legal virtual office address to obtain the approval of registration.
– Name search and submit application, get the approval of the corporate name.
– Documents and forms preparation, and signature of the corporate shareholder(s).
– Apply for the certificate of registration of foreign owned enterprise approved by the local Municipal Commission of Commerce.
– Obtainment of the business registration license from the local licensing authority, know as: 5-in-1 business license.
– Issuing of the corporate stamps, known as corporate seals.
– Documents collection and submitting for tax registration, and VAT taxpayer application.
– Basic and capital accounts opening and capital account declaration.
– Government cost, translate fee, and drafting of the legal files and forms.
– Import and export license registration and permits application.
– Yearly administrative and maintaining services, such as license renew.
– Annual bookkeeping and tax declaration services for income tax report, annual audit, government inspection, tax final settlement.
Service Industry
- Government Costs
- Certificate of Registration
- Business License
- Seals/Stamps
- Virtual Business Registration Address ( 12 months )
- Annual Tax Compliance ( 12 months )
Trade Industry
- Government Costs
- Certificate of Registration
- Business License
- Seals/Stamps
- Virtual Business Registration Address ( 12 months )
- Annual Tax Compliance ( 12 months )
Company’s shareholder, executive director, supervisor, financial manager
Shareholder(s):
Known as owners, as the investors of the company to operate daily transactions, you can learn the detail requirements from our guidance <Qualifications and Legal Requirements of Shareholder>. Shareholder(s) can be an existed business or individual(s).
Executive Director:
As well as the legal representative of a company, appointed by the shareholders and sign the contracts, agreements on behalf of the company. You can learn its qualifications from our guidance <Legal Representative Requirements>. Executive director can be a Chinese citizen or a nonresident, no restriction on nationality.
Supervisor:
Known as: secretary, on behalf of the shareholder(s) to supervise the senior management teams, no nationality restriction. You can learn supervisor’s requirements from our guidance <Legal Requirements of the Supervisor>.
Finance Manager:
You have to hire a local accountant as the financial manager to report the tax returns each month, and report your VAT and profits depending on your daily operations.
How Selecting Business Activities
Different business entities can apply for the different business scope from industrial selections. You can choose the business activities from different selections and industrial classifications. For example, if your China company is a garment business to operate daily purchase and sale (trade classification), also you can select garment design from service classification, even you can select electronics as the business scope if you need. In China, most companies have already obtained the approval of cross-industry business.
What Requirements and Documents You have to Prepare
Here, SMEsChina has listed a table of required documents you have to prepare in your home country, and call a courier to send these documents to SMEsChina offices. Our lawyers need to submit the documents to local government office to verify and check.
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 |
What Information Need to Decide
Here, SMEsChina has listed a refer links for your studies, you have to decide the following information of company registration through our related guidance links.
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 |
Required Documents of China Company Registration
You have to look for a local lawyer and fill in the information and files of a foreign company establishment and business registration, SMEsChina also provides the services to our foreign customers. Here is a list of required documents and forms of company formation for your studies. Detail documents you may refer to the page <Registration Documents Download> to get more studies.
Documentation Download List (PDF): | Signatory: | Remarks: |
---|---|---|
Letter of Commitment of Establishment of Foreign Investment Enterprise | Shareholder(s) | Bilingual, print double, black pen |
The Letter of Attorney for Appointed or Authorized Agent | Shareholder(s) | Bilingual, print 4 copies, black pen |
Foreign Company Registration (Record) Application | Legal Representative | Bilingual, print double, black pen |
Information of Legal Representative | Legal Representative | Bilingual, print double, black pen |
Information of Executive Director | Director | Bilingual, print double, black pen |
Information of Supervisor | Supervisor | Bilingual, print double, black pen |
Situations of Investors ( Shareholder Roster ) | Needn’t | Bilingual, print double |
The Letter of Attorney of Services of Legal Documents of Foreign Investment Enterprise | Legal Representative and Shareholder(s) | Bilingual, print double, black pen |
Commitment of the Registry Authority | Legal Representative | Bilingual, print double, black pen |
Commitment of New Establishment | Shareholder(s) | Bilingual, print double, black pen |
Virtual Registered Address Agreement | Legal Representative | Bilingual, print double, black pen |
Letter of Attorney of Application of Company Seals | Legal Representative | Bilingual, print double, black pen |
Letter of Attorney of Corporate Digital Certificate | Legal Representative | Bilingual, print double, black pen |
Appointment Document | Shareholder(s) | Bilingual, print double, black pen |
Sample of the Articles of Association | Shareholder(s) | Bilingual, print double, black pen |
Application of Foreign Trade Operator Certificates | Legal Representative | Bilingual, print double, black pen, import and export businesses need it |
General Taxpayer Application (VAT Qualification) | Legal Representative | Bilingual, print double, black pen |
Suggested Reading:
<20 days forming a company in China>
<how long does it take to register a wfoe in china>
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