Incorporating a Domestic Invested Enterprise

Guide for Registering a Domestic Invested Enterprise
– Known as: DIE Company

According to Chinese domestic enterprises laws and regulations, domestic businesses must be owned by all Chinese citizens or local institutions and organizations ( legal registered and existed ). And all cooperators as the shareholders to set up company structure and apply for procedure of corporation formation with five-in-one new business license. The difference with WFOE ( wholly foreign owned enterprises ) or JV structure ( Joint Venture ) is that no foreign entities and non residents be the shareholders.

It cannot be denied that domestic invested enterprises are the most efficient corporate type and the fastest approval procedure as a legal entity and corporate structure for incorporating. Without any processes of verification because they have legal ID to register companies.

Requirements of Chinese Individual Shareholders: Submit the original legal identification card (ID) to MSA ( Market Supervision and Administration ) to verify that if can be approved to open companies and register corporate taxpayers.

Requirements of Chinese corporate shareholders: Know as legal entities who have obtained local business license from their supervision departments, and provide original business license and company seals to MSA (Market Supervision and Administration) and then to get approval of registration.

Basic Structure of DIE, you have to set up corporate structure for register a local domestic invested enterprise, legal representative ( executive director ) and supervisor who appointed by shareholder(s).

Steps of Registering a DIE

  • List a structure of shareholder(s).
  • Shares and joint agreement.
  • Sign articles of association.
  • Sign appointment documents.
  • Obtain business license.
  • Apply for company seals / stamps.
  • Open a basic corporate RMB account.
  • Register corporate taxpayer of VAT.
  • Start running and maintaining company.

Details Procedure of DIE Company Establishment

1st Requirements and Documents

Confirm the corporate registered capital ( the minimum amount is 30,000 RMB for domestic invested companies ), and make a list for business scope and activities, confirm the structure of incorporation and prepare original ID ( shareholder(s), legal representative and supervisor ) to market supervision and administration checking.

2nd Choose and Search a Company Name

First you have to make a list for corporate names and submit to government office searching and obtain name approval. And then use this available name to collect relevant requirements and prepare identification card(s) to verify.

3rd Submit Approval

This step needs 5 work days to obtain approval, and you will get a business license and meanwhile obtain the company seal, financial stamp, legal representative stamp, invoice seal for you domestic companies.

4th Open a Bank Account

Submit company license and seals to local banks to obtain approval and get a bank account. This account will be the only one basic account issued by China central bank, also you can open more general account(s) under your company if you want.

5th Register Corporate Taxpayer

2 or 3 working days to complete the procedure of taxpayer registration, you can set up a taxpayer for your DIE, such as small scale taxpayer or general taxpayer to obtain different invoicing qualifications.

FAQs of Setting up a DIE

According to the Chinese tax system and related regulation of a corporation, you have to hire a local person as the executive financial manager to deal with daily tax return. And attend the taxation meeting on behalf of your Chinese business entity.

Sure, even if your corporate structure owned by domestic shareholder(s), you also can appoint a foreigner to be the executive director ( know as legal representative ), and same time, you also can appoint a non resident as the supervisor.

If your company is a local registered business entity and has obtained a business license issued by your supervision department, you can use it to be the shareholder for setting up a domestic invested company to obtain more business and industrial activities.

All local registered companies, enterprises can hire local Chinese or foreign employees after sign agreement of employment, but if you want to hire foreign staff, you have to collect required documents from your foreign employees, such as, no criminal record, notarized education certificate, CV, photos etc. To estimate that if they can get approval for working permits in terms of talent points system.

Sure, if your Chinese company wants to do import and export business, you have to register additional permits from the China Customs to operate daily Customs duties verification and electronic port businesses.

According to Chinese companies’ laws and enterprises registration regulations, the minimum registered capital for Chinese joint businesses is 30,000 RMB ( Chinese local shareholders must include 2 at least or more ).

If your DIE incorporation only includes 1 shareholder ( Chinese citizen or domestic corporation ), the minimum registered capital is 100,000 RMB.

You can link this guide to learn more: Company Registered Capital.

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