Incorporation of Company Just Needs 20 Workdays

A limited company and Chinese LLC ( limited liability company ), LLP ( limited liability partnership ) in mainland China are incorporated in terms of the latest enterprises laws of business registration act of 2014. There have many advantages for registering a Chinese limited company or a partnership and the owners of the company will be as the shareholders to contributes investments which they are interested in using the company to develop their planning of business in the market of mainland China. Certainly, all of the shareholders can share the profits from their owned China limited companies.

To start a limited liability company incorporation is affordable and the whole procedure can be done within 3 weeks ( around 20 working days ), when you deciding the most reasonable and optimal corporate structure for your China LLC or LLP, you have to consider the best solution of maximizing profits and the planning of business management and corporate development strategies and so on. There have many regulation and laws, culture and legal compliance in this great country with rapid expansion and powerful economic performance, here local governments are reforming and creating a brand new environment of investment to assist domestic companies and foreign enterprises acclimatizing to the changeable international political and economic environment.

As a legal registered limited liability company is the most popular company type in mainland China, well deserved reputation and required registered capital for entity status can provide to your clients additional confidence to get orders and incomes. Limited companies have more businesses opportunities due to all company register information and corporate credit rating will be published on the websites of different department offices, such as: tax bureaus, industrial and commercial administration bureaus. If have any black records on these website systems, no any purchasers and suppliers want to deal with them. The most important and major benefits is that the shareholders or owners do not need to undertake the private assets in case of Chinese company bankruptcy.

1. Low opening fees and running costs and as the best business type and company structure be popular with global investors which means foreign enterprises and non residents can jump into the China market comfortably.

2. Do not need to inject the registered capital at the beginning, this requirement has been postponed that oversea shareholders can free choice the amount and timings to inject the investment capital. China government allows foreign shareholders injecting the registered capital within 30 years.

3. Since 1st May 2018, tax office has reduced the VAT tax rating comprehensively for different industries.

4. Small and micro businesses can apply for the policies of taxes reduction according to different scale and business activities.

5. Most of industries cancel registration systems, change to commitment system which means encourage and open more limits industries, integration with the world economy.

6. The most important advantage is that you can through registering a local limited company, LLC or LLP to do business, do not forget that China is the largest consumer market in the world.

7. Holding a local company to hire employee and help foreign staff obtaining visa residence permits easily.

8. Establish a own business entity to register Chinese trademark to do business and electronic commerce.

Exactly, whatever the type of China company is, WFOE and Joint Venture also can register to be the limited liability company and the costs and procedure of company establishment are the same here, and WFOE and Joint Venture also can obtain the same taxpayers degree and share the same rights and tax ratings. A WOFE and Joint Venture which means included non residents as the shareholders and the structure also can be LLC or LLP.

First, all of them belong to limited liability companies, there have not any difference with procedure of registration and taxes rates. All types all can be approved from local industrial and commercial bureaus and tax offices easily. And all these commercial structures can be registered as LLC or LLP.

1. WFOE means the corporate shares wholly owned by non residents, like, individual foreigners or oversea existed enterprises.

2. Joint Venture means the hold shares owned by both China and foreign residents. And the foreign shareholders ( individuals or oversea existed companies ) have to hold shares more than 25%.

3. Domestic Company means the whole shares owned by local Chinese residents ( individuals or registered local companies ).

Stage 1, Chinese company name registration and application, 3 working days.

Stage 2, Sign official legal documents and register forms, 1 working day.

Stage 3, Submit to local industrial and commercial bureaus to obtain business license, 8 working days.

Stage 4. Apply for a Chinese local bank to open a bank account, 3 working days.

Stage 5. Tax registration and apply VAT invoice machine, 5 working days.

Stage 6. Apply for import and export permits and licenses if you need, 7 working days.

The whole process and procedure, our consultants and lawyers will help you completing, all documents and forms we will courier to you, and will submit to government approval. The whole procedure will be done according to above timeline.

If you are a non Chinese resident and look forward to do business in mainland China, you should find a local cooperate organization or laws firm instead of an ordinary company formation agent, even though there are many company registration agents can help you completing the limited company registration but you also have to consider if they can offer the follow up services for different stages of development and growth. Moreover, your China LLC or LLP as a legal registered company and must adopt different financial strategies and structural adjustment to match with changeable policies and law regulations. So you may hire our dependable senior consultants to help you making a series of business plannings whatever your type of company is and whichever nationality you are from.

In conclusion, with our professional and international elite team fully capable of being responsible for your China companies from company establishment, licensing, taxation planning and declaration, internal auditing, human resource management, visa residence permit, bank maintenance to trademark registration, taxes breaks, government inspection, permits, legal compliance in terms of different growth stages of enterprises development.

With the implementation of the New Foreign Investment Enterprise Law, China is encouraging more and more oversea companies to join this emerging market through the further openness of various policies and regulations, such as: lower registered capital system, new 5-in-1 business license, efficient account opening process and more open market access system. Now, start up a Chinese WFOE has become a simply and comfortably experience, even you do not need visiting China personally. SMEsChina assists you completing the whole process of establishment confidently by our experienced teams and lawyers.

Any existed foreign companies, foreigners ( nonresidents ) can be the shareholder(s) of a China WFOE, and obtain the approval of certificate of business registration to operate daily businesses and transactions. Before setting up a WFOE in mainland China, you have to make a decision, who will be the shareholder(s), known as owner(s), because shareholders have the right to distribute the final profit of after-tax. Learn more: Qualifications and Legal Requirements of Shareholder

A foreign parent company ( existed corporation ) as the shareholder to own the 100% stocks ( shares ), need to register a Chinese subsidiary company as a wholly foreign owned enterprise, and the Chinese WFOE as an independent subsidiary to operate businesses in local market. Foreign parent company as the controlling party, has to obtain notarization and authentication documents for the certificate of registration of foreign parent company issued by the Chinese embassy in your home country.

Non residents also can be the shareholder(s) of a WFOE, and you have to apply for the notarization and authentication documents for your passport issued by Chinese embassy in your country.

Legal representative, known as: legal person, or executive director, appointed by shareholder(s), an individual shareholder also can be appointed as the legal representative, no nationality restrictions, legal representative has to apply for the notarization and authentication documents of passport issued by Chinese embassy. If legal representative is a Chinese, need original ID. Learn more: Legal Representative Requirements

Supervisor, known as: senior secretary, appointed by corporate shareholder(s), no nationality restrictions. An individual shareholder also can be the position of supervisor. But according to Chinese company laws, the supervisor cannot serve as legal representative at the same time. Foreign supervisor just needs the passport copy and photo, Chinese supervisor needs original ID and photo. Learn more: Legal Requirements of the Supervisor

Known as: business activities, you have to select a list from national economic industry classification and obtain approval of business registration, whatever your industry is, you must apply for the business scope when you submitting the application of certificate of registration. Also, different business activities mean different taxation rates, such as: trade, service, engineering, etc. Here, SMEsChina teams suggest you to learn the business scope from our guidance: A Collection Of Guiding Corporate Business Scope.

Known as: investment capitals, corporate shareholders act as investors and fulfill their capital contribution obligations. China government allows foreign shareholders to inject the registered capital with 30 years once local corporation be approved. Registered capital will be transferred from oversea shareholder’s account to Chinese corporate account after exchanging to RMB currency.

Setting up registered capital is a mandatory provision you have to comply with that, if you are deciding to establish a Chinese business. Traditional trade or service industry, the minimum registered capital is 20,000 USD or Euro. About more reference of capital of China companies, suggest you reading our guidance: Company Registered Capital.