How long does it take for the establishment of foreign enterprises in Shanghai?
If you are solely foreign-funded, it will take a shorter period of time than Sino-foreign joint ventures, which is about one and a half months.
1. First go to the Industry and Commerce Bureau to for company name approval; (about 1-10 working days)
2. Review the contract, feasibility study report, and the articles of association – Commerce Committee, (if there is a pre-approved project, prior approval is required) (approximately 20 working days);
3. Business license – Industry and Commerce Bureau (around 5 working days);
4. Engraving the seal – Public Security Bureau (about 5 working days);
5. Enterprise organization code – quality and technical supervision bureau (about 3 working days);
6. Foreign exchange registration – Foreign Exchange Administration (around 20 working days);
7. Tax registration – Tax Bureau (around 3 working days);
8. Bank account opening – Bank;
9. Capital verification – accounting firm;
10. Change of business license – Industry and Commerce Bureau
11. Settlement – Bank
What are Shanghai’s requirements for the registration of foreign companies
Shanghai has been at the forefront of China’s development since its reform and opening up. The regional economy has also maintained a momentum of sound and rapid development, and it has been widely favored by foreign investors. According to statistics, as of the end of 2011, foreign investors have set up 240 investment companies in Shanghai, 353 regional headquarters of multinational companies and 334 R&D centers.
This has fully demonstrated Shanghai’s attractiveness to foreign investment. Then what specific requirements does Shanghai have for registering foreign companies? How to register a foreign company in Shanghai?
First of all, make it clear what kind of company you want to establish in Shanghai. If you just want to register a permanent representative of a foreign company in China in Shanghai, then the investment and taxes involved will not be much, and it will be approved around half a month.
If you want to invest in a foreign-funded industrial company in Shanghai, the registered capital, taxes, and other capital investment involved will be relatively large, and the relevant administrative matters will be more complicated to handle. The entire registration period will take about 2 months.
The registered capital of foreign-funded companies in Shanghai is preferably over 500,000 yuan. Although the minimum registered capital of 100,000 yuan in domestically-funded enterprises is also applicable to foreign-funded enterprises, yet actually not many foreign registrations with 100,000 yuan could be approved in Shanghai. In the past few years, the state has been cracking down on “fake foreign capital”, so it would be advantageous to prepare larger amount of registered capital so as to smoothly pass through the industry and commerce procedures, avoiding unnecessary failures.
As a bridgehead for foreign economic development, Shanghai has a unique advantage in foreign-investment. There are also many supportive policies concerning the registration and settlement of foreign-funded enterprises. As a coastal city, it is also very favorable for the development of import and export trade of foreign-funded enterprises. If you want to register a foreign company in Shanghai, then act quickly.
Specific industrial and commercial registration issues can be handled by relevant professional agencies for you. The registration process of foreign-funded companies in Shanghai is rather cumbersome. People who are not very clear about the rules and procedures in this area can only find it extremely depressing if some key documents are found missing in the final stage.