Requirements for registration of the foreign-funded logistics type enterprise

I. Circular on the Relevant Issues concerning the Experimental Establishment of Logistics Enterprises with Foreign Investment
II. Notice of Ministry of Commerce about Further Improvement of the Work of Attracting Foreign Capital in Logistics Area
III. Provisions on the Administration of Road Transport Sector with Foreign Investment
IV. Provisions on the Administration of International Maritime Transportation with Foreign Investment
V. Provisions on Civil Aviation by Foreign Investment
VI. Interim Measures on Examination, Approval and Administration on Railway Freight Transport with Foreign Investment
VII. Administration Measures on Foreign-funded International Freight Forwarding Agent Enterprises
VIII. Measures on the Administration of Commercial Fields with Foreign Investment

Application Conditions of a Logistc WFOE:

I. The foreign-funded logistics-type enterprise refers to the foreign-funded enterprise that takes providing logistics and other relevant services to other enterprises as its main business activity, including the foreign-funded road transportation enterprise, the foreign-funded water transportation enterprise, the foreign-funded air transportation enterprise, the foreign-funded freight forwarding enterprise, the foreign-funded commercial enterprise, the foreign-funded third-party logistics enterprise and the foreign-funded enterprise engaged in other logistics or logistics-related services.

II. It is allowable for overseas investors to invest and manage the international distribution of logistics business and the third-party logistics business in the form of Sino-foreign joint venture and Sino-foreign cooperation.

III. Meet the requirement on the minimum registered capital stipulaetd by the above laws and regulations regarding foreign investment.

IV. Apply for establishing the foreign-funded logistics-type enterprise and engage in one or multiple logistics business. To apply for multiple logistics business, the highest conditions among the qualification requirements for respectively engaging in the applied logistics business need to be met.

V. Among the investors who are planning to establish a foreign-funded logistics enterprise undertaking the international distribution of logistics business, at least one party shall possess excellent performance and operating experience in managing international trade, international cargo transportation or international cargo transportation agency. The investor satisfying the above requirement shall be the largest shareholder among the Chinese investors or foreign investors.

VI. Among the investors who are planning to establish a foreign-funded logistics enterprise undertaking the third-party logistics business, at least one party shall possess excellent performance and operating experience in managing transportation or logistics. The investor satisfying the above requirement shall be the largest shareholder among the Chinese investors or foreign investors.

VII. The share proportion of overseas investors in a foreign-funded logistics enterprise undertaking the international distribution of logistics business shall not exceed 50%.

VIII. Have fixed business premise.

A foreign-funded international freight forwarding enterprise can carry out part or all of the following business with approval:

(I) Booking (chartering boat, chartering airplane, chartering cabin), consigning, storage and packaging.
(II) Supervision of loading and unloading of cargoes, the container assembling and dismantling, distribution, transfer and relevant short-distance transportation services.
(III) Customs clearance, application for inspection, application for examination, insurance.
(IV) Preparing relevant documents, freight payment, clearing and incidentals payment.
(V) Transportation agency of international exhibits, personal belongings and transit cargo.
(VI) International multimodal transport and concentrated transportation (including container LCL).
(VII) International express service (except personal letters, posting and delivering service of official documents in the party, government and military system).
(VIII) Consultation and other international freight forwarder business.

Business scope refers to the scope of business activities that an enterprise undertakes, which shall be lawfully registered in the enterprise registration authority. The enterprise registration authority shall lawfully register the enterprise’s business scope according to the application of investors or enterprise. The enterprise’s business scope shall be consistent with regulations in the Articles of Association or Partnership Agreement.

Standard business scope of the international freight forwarder

Handle the maritime transportation, land transportation, air transportation of imported and exported goods, international transportation agency business of the international exhibits, personal belongings and transit cargoes, including cargo canvassing, consigning, space booking, container assembling and dismantling, storage, transfer, customs clearance, application for inspection and relevant short-haul transportation services as well as consultation service (the above products concerned with the special management provisions of quota license shall be handled in accordance with relevant regulations of the State).

Requirements of registered capital

It is suggested that the registered capital of an international logistics enterprise exceeds RMB 5 million) and adapt to the ‘investment scale’
(I) The minimum registered capital for managing maritime international freight forwarder business is RMB 5 million.
(II) The minimum registered capital for managing aviation international freight forwarder business is RMB 3 million.
(III) The minimum registered capital for managing land international freight forwarder business or international express business is RMB 2 million.
The minimum registered capital for managing two or more businesses in the previous provisions is the highest among all.

Processes and documents required for opening a foreign-funded logistics company

  • 1. The registration of foreign-funded logistics company is mainly according to Notice of Ministry of Commerce on Further Improvement of the Work of Attracting Foreign Capital in Logistics Area.
  • 2. Enterprise types of the foreign-funded logistics company registration: WFOE, wholly foreign-owned enterprises, joint venture or other limited companies.
  • 3. Registered capital of the foreign-owned logistics company. Different minimum registered capitals are applicable according to different business
    scopes of the logistics enterprises.

Conditions on applying for the registration of a foreign-funded logistics company

  • 1 ). The foreign-funded logistics-type enterprise refers to the foreign-funded enterprise that takes providing logistics and other relevant services for other
    enterprises as its main business activity, including the foreign-funded road transportation enterprise, the foreign-funded water transportation enterprise, the foreign-funded air transportation enterprise, the foreign-funded freight forwarding enterprise, the foreign-funded commercial enterprise, the foreign-funded third- party logistics enterprise and the foreign-funded enterprise engaged in other logistics or logistics-related services.
  • 2 ). It is allowable for overseas investors to invest and manage the international distribution of logistics business and the third-party logistics business in the form of Sino-foreign joint venture and Sino-foreign cooperation.
  • 3 ). Meet the requirement on the minimum registered capital stipulated by the above laws and regulations regarding foreign investment.
  • 4 ). Apply for establishing the foreign-funded logistics-type enterprise and engage in one or multiple logistics business. To apply for multiple logistics business, the highest conditions among the qualification requirements for respectively engaging in the applied logistics business need to be met.
  • 5 ). Among the investors who are planning to establish a foreign-funded logistics enterprise for undertaking the international distribution of logistics business, at least one party shall possess excellent performance and operating experience in managing international trade, international cargo transportation or international cargo transportation agency. The investor satisfying the above requirement shall be the largest shareholder among the Chinese investors or foreign investors.
  • 6 ). Among the investors who are planning to establish a foreign-funded logistics enterprise for undertaking the third-party logistics business, at least one party shall possess excellent performance and operating experience in managing transportation or logistics. The investor satisfying the above requirement shall be the largest shareholder among the Chinese investors or foreign investors.
  • 7 ). The share proportion of overseas investors in a foreign-funded logistics enterprise undertaking the international distribution of logistics business shall not exceed 50%.
  • 8 ). Have fixed business premise.
  • 9 ). Have essential facilities to conduct the managed business.
  • 10 ). Subject to the approval of Ministry of Commerce according to the above department rules or other laws and regulations regarding the foreign investment.

Process of opening a logistic by company registration agency:

  • 1) Ascertain the investor’s qualification t hrough preliminary consultation.
  • 2) Sign the Consulting Agency Agreement and provide the Investment Plan.
  • 3) Provide the material list and sample to help the client prepare documents accurately without error.
  • 4) Be entrusted to draw up various documents including Feasibility Study Report, Articles of Association and Letter of Application, etc., then submit them to the client for confirmation in way of signature.
  • 5) Apply for approval from Shanghai Municipal Commission of Foreign Economy and Trade.
  • 6) Apply for Approval Certificate of Foreign Investment.
  • 7) Apply for Special Operation Business License.
  • 8) Apply for Enterprise Business License.
  • 9) Carve seals.
  • 10) Apply for Organization Code Certificate.
  • 11) Apply for Foreign Exchange Registration Certificate.
  • 12) Apply for Tax Registration Certificate.

If you are planng to open a Chinese logistic business, forwarder company, you may contact us by online consultants.

Recommend readingChina Companies Help and Support Center to learn more from a collection of guidance on startup, registration, formation, running and operations for Chinese Companies. Through this page to learn more if you plan to startup a private business in China.

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