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.
