The process and steps of the establishment of a Chinese mainland company

Materials to be prepared:

  • 1. Name of the company (more than 5 alternative names of the company); read more: Company Name Requirements
  • 2. The copy of the House Property Certificate of the registered address of the company and the copy of the owner’s identity card ( the certificate copy of the institution property and the lease contract of the house should be stamped with an official seal of the institution; residential quarters in new and high-tech zones, economic development zones and new station zones are required to provide the original House Property Certificate to be checked by the Industry and Commerce Bureau ).
  • 3. The original identity card of the whole shareholders ( if the registered capital is provided by the customer, only the copy of the ID card should be provided; if the legal person has nonlocal registered permanent residence and needs to register in the new station zone, the economic development zone and the new and high-tech zone, he shall provide the original Temporary Residence Permit. )
  • 4. The proportion of all shareholders’ capital contribution ( arrangement of shareholders’ shares )
  • 5. The business scope of the company ( What is the main business of the company? The scope may involve qualification or license. ). learn more: Selecting Business Scope

Registration process of a mainland company

  • Step 1: prepare more than 5 company names and check them at the Industry and Commerce Bureau.
  • Step 2: Engrave a set of engraved seals in the engraving factory, including the company official seal, financial seal, legal person’s seal and contract seal. At the same time, open a capital verification bank account and deposit investment funds.
  • Step 3: Collect and collate materials to apply for a business license at the Industry and Commerce Bureau.
  • Step 4: Collect and collate materials to apply for a company’s organization code certificate at the Bureau of Quality and Technical Supervision.
  • Step 5: Collect and collate materials to apply for a national tax registration certificate at the National Taxation Bureau.
  • Step 6: Collect and collate materials to apply for a local tax registration certificate at the Local Taxation Bureau.
  • Step 7: Open a company’s basic account at the bank where you open a capital verification bank account or other banks.
  • Step 8: Company accountant collects and collates materials and goes to the National and Local Sub Taxation Bureaus for company record and reporting tax returns.

The establishment procedure of Shanghai Company in China

Initiation

  • 1) Formulate the articles of association of the company;
  • 2) Initiators subscribe for the initial issue of the shares;
  • 3) Initiators pay the contribution capital;
  • 4) After completion of the payment of all shareholders, a statutory capital verification institution shall carry out capital verification and issue the capital verification certificate.
  • 5) Elect the chairman and the board of supervisors;
  • 6) Apply for the registration of establishment;
  • 7) Obtain the business license and make an announcement. Learn more: Business Incorporation Certificate

Raising shares

  • 1) Initiators sign the initiator agreement to clarify their rights and obligations in the process of establishing the company;
  • 2) Initiators jointly formulate the articles of association of the company;
  • 3) Initiators shall subscribe for no less than 35% of the total shares of the company;
  • 4) Initiators shall publish a prospectus and prepare share subscription forms;
  • 5) Sign a share underwriting agreement and a share collection agreement with securities dealers and banks respectively;
  • 6) Subscribers subscribe for and pay their shares;
  • 7) A statutory capital verification institution shall carry out capital verification and issue the certificate;
  • 8) Convene the founding meeting;
  • 9) Apply for the registration of establishment;
  • 10) Obtain the business license and make an announcement.

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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.

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