Chinese Company Formation for Foreigners ( Non Chinese Local Residents ):
Comprehensive company registration guidance, offer high standards of service to global enterprises, entrepreneurs, middle and small-sized enterprises from around the world who wish expanding and developing their products, services, technologies and brands in mainland China.
SMEsChina teams provide quick response for Chinese enterprises formation, help our customers to start doing their businesses in China market immediately, and the same time, assist non residents to register and maintain businesses smoothly and legally.
There are no restrictions for any foreigners from any countries and all of these non Chinese local residents can be the directors, shareholders, and also you can appoint any residents to be the legal representative ( executive director ) and supervisor of Chinese company. A limited company can be established through our professional guidance and online company registration system and for you there are no mandatory provisions that you do have to live in China.
You may have a lot of questions and misgivings with establishing a LLP ( limited liability partnership ) or LLC ( limited liability company ) as your Chinese local limited company. SMEsChina teams deeply aware of your difficult choices in the early stage of starting a business, and in fact, there are indeed many rules and regulations that are difficult for foreigners to digest, therefore, our lawyers always assist our foreign clients with simple and intelligible terminologies to explain the enterprises laws and taxation policies.
But now, the best business environment coming, the Chinese government is actively stepping up and deepening the reforms and measures of the enterprise registration system. For non residents, plan to setting up a company in China, will become easier and simpler. Meanwhile, SMEsChina team members assist you preparing all legal supporting documents and forms for submission of registration ( Chinese state administration for industry and commerce ) more convenient and comfortable.
Why Incorporating a Business in China:
China’s thriving economy is attracting a lot of entrepreneurs, foreign individual investors, holding companies and subsidiary corporations who eager to establish and start up business entities in the local mainland China. With SMEsChina teams, global corporations and brands will have an excellent and professional local business partner to access local market, and SMEsChina can help different countries and various industries successfully establish your own businesses in China.
In October 2017, a report at the 19th National Congress of the Communist Party of China stressed that innovation is the primary driving force behind development. China has become the center of start-up companies, entrepreneurial accelerators and business incubators, more and more attention to the construction of an innovative national strategy. China has set the aim of becoming an “innovation nation” by 2020, an international leader in innovation by 2030, and a world powerhouse in scientific and technological innovation by 2050.
Our legal consultants specialize in assisting foreign entities enter Chinese marketing and setting up Foreign Invested Commercial Enterprises, Wholly Foreign Owned Enterprises, Representative Offices, , and Joint Ventures in mainland China. We know well why so many foreign enterprises and oversea companies don’t understand the Chinese investment structures and laws, taxation, local regulations when they intend to invest and enter China marketing. Here we list the main hot issues that you are looking forward learn.
Different Legal Status for China Enterprises:
1. Wholly Foreign Owned Enterprise:
WFOEs in China are 100% owned and invested by foreign individual shareholders or oversea holding enterprises, as a local business type and limited liability company that a WFOE can choose a list from different services scope and trading activities, such as: consulting services, management consultants, enterprise consulting and services, technological support, sale and purchase, and others. Suggest you reading the page: Standard Description of Business Scope of Chinese Companies, WFOE in China is the most popular corporate type for non residents and foreign existed corporations. About its procedure and requirements, you may link our another posted guidance: How Setting up a WFOE within 20 days
2. Foreign Invested Commercial Enterprises, the legal status of FICEs are also the same as WFOEs.
3. Joint Ventures:
JV also is a very popular company type for mature enterprises that owned and invested by foreign investors ( individuals or oversea enterprises ) and Chinese partners together. But in terms of the laws of Joint Ventures, if Chinese shareholders are local domestic companies that it would be much easier and faster to establishment, if the Chinese shareholders of Joint Ventures are Chinese ( individuals ), need more extra costs and procedures from local government , so if possible we often suggest that Chinese partners to register one local domestic company first then use it to holding the Joint Ventures with foreign investors ( individuals or oversea existed enterprises ).
4. Domestically Invested Enterprises:
DIEs in China are 100% owned and invested by Chinese investors ( individuals or local existed companies ). Different with WOFEs, FICEs, JVs, because the shareholders are Chinese investors so DIEs have advantages that the procedure of establishment is more easier, quicker, and can get more business scope and activities from local government approval.
5. Foreign Invested Partnership:
FIPs are also limited liability companies and have 2 foreign shareholders at least, are 100% owned and invested by foreign individual shareholders or oversea existed enterprises.
6. Representative Office:
Even though need to prepare many notarized documents and files from China embassy, but Rep Offices are also the easiest approach for small and medium-sized foreign enterprises. Different with WOFEs, FICEs, JVs, DIEs can be accepted to use virtual registered address to apply for government approval, as a Representative Offices must rent a physical address ( real office ) and apply for Work VISA for representative then can apply for the certificates of business registration and bank account.
You can link more about different structure of corporation to learn from our guidance: Selecting a Company Type
Viewpoints that Why the prices seem to be higher for non Chinese residents:
1. First our Chinese company registration packages for foreign enterprises include a legal registered address that is required by company laws. And we also provide secretary services and standard mail services.
2. And all documents, files and forms for application of company formation we need to translate into Chinese language then can be accepted and submit to local government office.
3. As a foreign enterprise owned by non Chinese residents, need to apply for extra certificate like foreign enterprises certificate of business registration during the process of company formation, unlike Chinese residents only need to obtain business license from administration for industry and commerce.
4. Chinese residents only need to open a basic account to go about their daily transactions, but non Chinese shareholders must open an extra capital account and its supervised by the administration of foreign exchange.
5. Different from domestic enterprises owned by Chinese residents, foreign investors as the shareholders of company in China we called it foreign investment enterprise, oversea shareholders can be foreign enterprises or foreign individuals. So each year government needs these foreign companies to attend annual audit and inspection from different departments.
Requirements, Procedure and Process of Company Registration:
In mainland China, private LLC ( limited liability company ) is the most popular enterprises type of company registration because it has independent legal qualification and structure of investors for its shareholders ( owners ). In terms of Chinese companies registration ordinance and enterprises laws, you may open a LLC as company’s type and any people can be the shareholders who’s age over 18, here you can read this page and learn all details of Chinese company registration, whatever industry you intend to register in mainland China, you also need to understand the following important information for your China business development and planning.
Simple Requirements and Basic Structure of Foreign Business Enterprise as the following:
1. Company Name Search
Company name in Chinese
Apply for a name for your Chinese company incorporation, and need you filling a document from our professional consultants first, and approval a legally and available name in Chinese language from local government departments. If you can not type Chinese characters, don’t worry about it because our consultants will give you assistance.
Company name in English
After you got business license and permit from local business enterprises management registration bureau, you may apply for a name in English language from police office. You can use English name on your company stamp and foreign trading permit. Generally, the types of company English name you can set up as :
ABC Group ( China ) Co.,Ltd.
ABC International Trading ( Shanghai ) Limited
ABC Consultants ( Shanghai ) Ltd.
Learn more: Company Name Requirements
2. Structure of Shareholders ( owners )
The minimum number is one shareholder then can be approved from local Chinese government to start up a Chinese company registration. Shareholders can be individual Chinese person and individual foreigners and the same time can be foreign enterprises and domestic companies.
Learn more: Register Company Required Documents
3. Board of Directors
If your limited company is Joint Venture or partnership enterprises, local government need you setting up an independent board of directors, must include three independent directors at least and appointed by shareholders. One of the director can be the legal representative of China company.
4. Legal Representative and Supervisor
These 2 positions need to be appointed by board of shareholders, legal representative as the independent delegate will be responsible for all local laws of Chinese companies and has the right to sign all Chinese legal documents and contracts on behalf of the China Company.
Supervisor just like senior secretary in oversea enterprises, has the rights to supervise the senior management teams of the company.
5. Registered Capital and Proportion of Shares
The minimum register capital is 100,000RMB, around 16,000USD, 13,000Euro, the currency of registered capital decided by your decision, and Chinese government allows foreign shareholder(s) to inject the registered capital within 30 years once you already established the local limited company, along with this, you can inject the capital more times and how much each time depends on your company needs.
Proportion of shares, our lawyers will draw up the articles of association and agreement of share subscription and these Chinese legal official documents will send to you later, and SMEsChina will submit signed files to local government to obtain approval of registration.
Learn more: Requirements Of Registered Capital
6. Registered Address
This is the leading requirements for China company registration, if you do not want renting a physical real office, you may use our virtual registered address to open China company, do not worry, our virtual office are available and legally for government checking.
Learn more: Why Using a Virtual Address
7. Open a Bank Account
Our consultants assisting clients to prepare all files that bank needed and help you opening a local bank account, apply for the internet banking, its easy and fast to submit documents and business license to local Chinese banks. New regulation impletemented in 2019, bank account can be approved around 3 workdays.
8. VAT Taxpayer Registration
Local tax bureau will inform these established enterprises to register tax information within 30 days. You can entrust our accountants going to tax office in person on behalf of your company, submit required documents and issue Chinese VAT invoice.
9. Public Registry Information
All information of company formation and incorporation will be published on the website of Chinese government, including company name, registered address, register number, taxation number, name of legal representative and supervisor and shareholders, registered capital, business scope and activities, and taxpayer record and credit degree.
After you already done the all processes of company registration you also need our additional services like monthly and yearly accounting, company secretary, import and export license and international trading permits, trademark, HR, visa and residence permit, etc.
If you are intending applying for company registration in mainland China, please contact our consultants right now.
Why Use SMEsChina Service Packages
We specialize in business registration for oversea residents and enterprises and have excellent expertise different with our competitors.
High efficiency maintenance of China companies and varied of additional services institutions.
Understand all legal requirements and compliance for non Chinese residents and make the whole process of experience more comfortable.
Need not come into China in person and all process, steps can be completed through international express.
As a legal company registration laws firm has been accredited and authorized by enterprises registration bureau of industry and commerce.
All personal information of China company are safe and secure and all documentation legalization approved by local register departments.
Extensive additional services which you can select once you starting up businesses in China, like: virtual office, taxation specialists, monthly payroll, social security and VISA residence permit.
Great relationship with local government office and resources of banks can help our clients handling any emergencies confidently.
If you are non Chinese residents and decide doing business in China market, you can contact our lawyers to establish your own entities, and complete the whole steps, procedure of company formation and business license registration by using our expert guidance.