Learn incorporation structure and names of Chinese LLC, and how to start the procedure and design company structure for a private business. If you are looking forward to get more guidance for register a Chinese company, and intend to incorporate a local LLC ( limited liability company ), and how to register enterprise’s name, company structure, costs, business licenses and permits, certificate of incorporation, here we guide you some information on completing, and if you want getting more complex issues, our specialist professional consultants are waiting for your feedback.
Generally there are 5 main types of LLCs are very popular here, WFOE ( Wholly Foreign Owned Enterprise ), FICE ( Foreign Invested Commercial Enterprise ) or JV ( Joint Venture ), FIP ( Foreign Invested Partnership ), DIE ( Domestically Invested Enterprises ), most of foreign enterprises choose one of them as the business entity in China, and global enterprises, entrepreneurs, start-ups used to register LLCs and bring their products and technology services enter into mainland China and expanding their brands in this largest market all over the world.
The guidance as following information sets out the main knowledge and files, documents requirements for incorporating a LLC ( Limited Liability company ) in mainland China. It includes information and suggestion about:
1. Who can incorporate an LLC
Must include one shareholder or more, and shareholders have the right to sign Chinese legal forms and documents to local government, can appoint the Chinese company’s legal representative and supervisor. According to the different situation, shareholders and legal representative need to apply for notarized and authenticated certificates and passports from China embassies in your home countries.
2. How to operate the procedure of incorporation
You should worthwhile taking advice from our lawyers, consultants and confirm the information: 1. How much register capital 2. Official registered address ( you intend to rent a spacial address/ real office or virtual registered address ) 3. make a list of Business scope and activities 4. Shares planning and structure 5. List of shareholders 6. Who will be the legal representative and supervisor ( can not be the same people ) 7. Local financial and accounting person ( if you do not have at the beginning you can appoint and outsourcing to our team )
3. Processes of incorporate an LLC
1. Chinese company name application 2. Prepare all official documents and legal forms 3. Submit all signed files to local government 4. Get business license and permits 5. Find a local bank to open account 6. Tax Registration 7. Issue Chinese VAT invoice 8. Apply for import and export licenses if you do international trading business
4. Others services in the future
1. Get work VISA and residence permit for foreign employee 2. Certificate of trademark registration 3. Open social insurance account for Chinese employee
Company Structure of China Incorporation
3 main key positions must report to China government when you apply for business registration:
If you eager to register a LLC ( Limited Liability Companies ) in China, in terms of Chinese foreign enterprises laws and regulations, you must appoint three positions in your own company.
1st. Shareholders as the highest authority of power. Owners of the Chinese company. Responsible for the registered capital and investment of China company, and can get benefits and dividends from corporate profits in the future . Shareholders have the rights for appointing the BOD ( Board of Directors ,three person least ), or Executive Director ( legal representative in China company ), and can appoint the supervisor of enterprise. and future, according to your decisions shareholders can set up the agenda of operations.
2nd. Legal representative ( 1 person ) holds company’s power in China business entity and appointed by shareholders, responsible for Chinese companies laws and regulations. Legal representative of Chinese company will be accountable for any problems in the Chinese company in the future.
3rd. Supervisor, the role of this position is to ensure there is no conflict of interest, a supervisor cannot concurrently hold the position of a Board of Directors / Executive Director, Legal Representative and General Manager. And supervise the execution of company duties by the directors and senior personal management.
Key Structure of the Company:
Required Documents you have to prepare in your home country:
Original ID card, photo, 16 years old at least. Digital photo.
Supervisor – Nonresident
Passport copy, photo, 16 years old at least. Digital photo.
Local ID copy, photo, 16 years old at least. Digital photo.
Before you setting up a Chinese local LLC, you should worthwhile taking advice from our lawyers and consultants, and we will assist you checking the local laws and suggest you which one is the best type for you to get licenses, permits, and then you can operate the procedure of business registration and legally running your Chinese businesses.
Ready to Start and Launch a Business in China? So Are We.
SMEsChina teams focus on the growth of enterprise and providing a variety of business solutions in the area of strategy consultancy, WFOE setting up services, business registration, company formation, incorporation of domestic invested enterprise, finance and audit services, HR and payroll, corporate bank account, resident permit, immigration and visa, trademarks and legal compliance.
China is attracting more and more foreign companies, SMEs,entrepreneurs, startups, brands to invest and establish their business entities through reforming various laws and regulations actively. More than 47 million companies and small medium enterprises have registered their business entities in mainland China and over 3.5 million new enterprises are incorporated during each financial year with comfortable process of registering companies. Here SMEsChina is sharing our knowledge and business insights to global enterprises and companies for better learning the regulations and rules of China corporations running and corporate maintaining. All reference and guidance collected by SMEsChina Teams in accordance with the latest implemented laws of the People’s Republic of China on Wholly Foreign-Owned Enterprises ( WFOE ), Joint Venture ( JV ) and Limited Liability Company ( LLC ), Limited Liability Partnership ( LLP ), and other relevant and officially promulgated regulations and rules on the corporation formation and registration of industrial and commercial enterprises and related IP laws, immigration and resident policies ( VISA ), tax laws.
SMEsChina teams happy to work around you and look after your daily China operations confidently and smoothly. Check if setting up a private company is right for you, if you have everything to set up a business in Mainland China, you can get in touch with our teams to get more useful information and online guidance.