Detailed explanation of requirements for foreign investment registration in Shanghai

Core Tips: What are the conditions, procedures and precautions for setting up a foreign-funded company in Shanghai? The following is the relevant information with our combined experience of actual foreign investment registration services and is for reference only.

Brief introduction of foreign investment company registration in Shanghai:

Foreign-invested companies are companies that set up investment registration for foreign companies coming to China. Their operating costs are imported from abroad. They can also be called subsidiaries, which provide a good platform for domestic business transactions and enjoy related preferential policies. For example, high-tech enterprises introduced from abroad will promote domestic development and there will be relevant tax exemption policies ( refer to Company Law for details ). In addition, foreign-funded enterprises can apply for free vehicle licenses and other related preferential policies in Shanghai if they meet certain conditions.

Then what are the specific conditions, procedures and precautions for setting up a foreign-funded company in Shanghai? The following is the relevant information of our combined experience of actual foreign investment registration services and is for reference only.

Conditions for the establishment of foreign companies:

(1). Natural persons from foreign counties, or Taiwan, Hong Kong, Macao, who have reached the age of 18, (and) or enterprises invested by foreign companies;
(2). Foreign-funded enterprises recommend that the consulting company’s registered capital be no less than 20,000 US dollars, and the registered capital of trade enterprises should not be less than 50,000 US dollars (except special industries);
(3). Company registered address (we can provide registered address for free).

Frequently asked questions for foreign-funded enterprises:
Q: How do I commission you to help us register a company and what materials to provide?
A: Sign a foreign company agency agreement with us, and fill in a power of attorney ( contents include: proposed company name, approximate business scope, legal person information, shareholder’s contribution ratio and other basic information )

Materials to be provided are mainly as follows:

1. Registration company’s power of attorney filled with truthful contents;
2. All investors and legal persons provide proof of identity (original documents required for verification by the administration for industry and commerce once); if the company needs to establish a business investment, a certificate of opening and a copy of the identity certificate of the supervisor are needed;
3. Investor bank credit certificate;
4. Two 2-inch certificate photos of the legal person;
5. Ownership certificate or lease contract of the company’s registered address (could be provided by Yusheng);
6. Our company will draft relevant articles of association and forms of government departments of foreign-funded enterprises for customers to sign and confirm.

Q: What documents can I get after registration?
A: The company’s full set of materials include: the original approval document of Foreign Economic and Trade Commission, the original certificate of approval, the original of business license ( the original and duplicate ), the original of the organization code certificate ( the original and duplicate ) and an IC card, the original of the tax certificate ( state and local ) ( the original and duplicate ), the original of the statistical card, the original of the financial registration certificate, the original of the foreign exchange registration certificate, company seals ( company seal, legal person seal, shareholder seal, financial seal ).

Q: What costs are incurred for operation after the company’s registration is completed?
A: (1) After the company registration is completed, you need to take our full set of materials to open a basic account;
(2) Go to the tax bureau to buy a tax control machine that can be invoiced (for machine-printed invoices);
(3) U-bar for online tax filing;
(4) Tax returns to the tax bureau on time every month;
(5) Inspection of the company’s industry and commerce and code once a year.

Q: My registered address is the economic park. Am I allowed to operate in other locations of Shanghai?
A: As long as it is normal business, you can operate it in any district in Shanghai. The Economic Park only serves as a registered address, and you have to report tax on time every month in the tax area of the registered address.

Follow-up services:

For foreign-funded enterprises, we provide agency financial services (including corporate accounting, taxation, ticketing, etc.), follow-up corporate annual inspections, code certificate annual inspections, and corporate-related information and financial advisory services. If the company runs into a series of procedures in its operations such as changes, we can process on behalf of the company and offer preferential prices to old customers. We cherish every company registered here with us, uphold the best services, and solve problems for companies.

Learn more: Incorporation Requirements For A Foreign Company

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.

Recent Insights and Publications

The Most Popular Tags of Corporate Type

Other Topics and Categories