20 Days Setting up a Business in China

Do not hesitate that mainland China has a lots of entrepreneurial and business opportunities, huge demographic dividend, the Belt and Road strategy and high speed growth engine are attracting global enterprises and companies, talents and elites entering into China market.

If you are intending doing business in mainland China, Chinese companies laws allow you holdings 100% of the company, and you can be the shareholder and director. Additionally, you can appoint yourself as the legal representative, and you need to appoint another person as the supervisor, do not worry, supervisor of Chinese company is also can be foreigner. Learn more: Company Incorporation of Non Residents

You can choose one to register from local government office.

– Limited Liability Company ( LLC ), you can register a LLC as WFOE ( Wholly Foreign Owed Enterprise ), JV ( Joint Venture ), or PE ( Partnership Enterprises ), DIE ( Domestic Invested Enterprises）, in terms of different structure of investors start up your business as WFOE, JV, PE, DIE. All owners ( shareholders ) have the rights to enjoy profits and benefits.

– Branch Office
If you already have registered a LLC in mainland China, you can use it to open a branch office in others cities or districts and its under parent company, you can appoint a independent director as a manager and all benefits and profits belong to parent company.

– Representative Office of Foreign Enterprises in China
Rep office in mainland China is the most restricted type because representative office can not be allowed to make any income from your clients. If you will not provide any services and sales to your clients, open a representative office is a right selection.

Other guidance: Selecting Company Type

Set up a Chinese business is easily and quickly, if you interested in opening a China company, you may get in touch with our online senior consultants, we will send you the form of company structure, this form included all information of business registration ( like : shareholders, legal representative, supervisor, members of the board of directors, registered capital, proportion of shares, business scope and activities, registered address, forms of application of registration, etc. ).

After you completed and confirmed all information, our professional staff will give you more guidance and draft up official legal documents, and then submit all signed files to SAIC ( State Administration for Industry and Commerce ) as soon as possible.

Total processing times for business registration only 5 – 7 working days after we submitted all documents. Then local government will approval your application and issue a business license as your legally certificate of company formation.

After your China business ( WFOE, JV, PE, DIE, Branch Office, Representative Office ) has been incorporated legally from local government departments, you should open a bank account use for business transactions in the future. This procedure has a little hard because bank need to make an appointment and need asking some questions with actual controller of company face to face.

But with the assistance of SMEsChina team, and deeply cooperation relationship, we can help you completing the process of bank account through online video certification without coming here in person. Around 5 working days later bank will approval your application and you may use online internet banking to operate payments.

OK, everything have already done, and starting up and running your Chinese business right now.

– Taxpayer registration and confirm which taxpayer degree you need to apply form tax bureau.

– Apply and issue Chinese local invoice, fapiao.

– HR selection for Chinese employee ( social insurance ) and foreign staff ( Z VISA, Working residence permit ).

– Inject registered capital and foreign exchange transaction.

– Brands and trademark registration.

With the implementation of the New Foreign Investment Enterprise Law, China is encouraging more and more oversea companies to join this emerging market through the further openness of various policies and regulations, such as: lower registered capital system, new 5-in-1 business license, efficient account opening process and more open market access system. Now, start up a Chinese WFOE has become a simply and comfortably experience, even you do not need visiting China personally. SMEsChina assists you completing the whole process of establishment confidently by our experienced teams and lawyers.

Any existed foreign companies, foreigners ( nonresidents ) can be the shareholder(s) of a China WFOE, and obtain the approval of certificate of business registration to operate daily businesses and transactions. Before setting up a WFOE in mainland China, you have to make a decision, who will be the shareholder(s), known as owner(s), because shareholders have the right to distribute the final profit of after-tax.

A foreign parent company ( existed corporation ) as the shareholder to own the 100% stocks ( shares ), need to register a Chinese subsidiary company as a wholly foreign owned enterprise, and the Chinese WFOE as an independent subsidiary to operate businesses in local market. Foreign parent company as the controlling party, has to obtain notarization and authentication documents for the certificate of registration of foreign parent company issued by the Chinese embassy in your home country.

Non residents also can be the shareholder(s) of a WFOE, and you have to apply for the notarization and authentication documents for your passport issued by Chinese embassy in your country.

Legal representative, known as: legal person, or executive director, appointed by shareholder(s), an individual shareholder also can be appointed as the legal representative, no nationality restrictions, legal representative has to apply for the notarization and authentication documents of passport issued by Chinese embassy. If legal representative is a Chinese, need original ID.

Supervisor, known as: senior secretary, appointed by corporate shareholder(s), no nationality restrictions. An individual shareholder also can be the position of supervisor. But according to Chinese company laws, the supervisor cannot serve as legal representative at the same time. Foreign supervisor just needs the passport copy and photo, Chinese supervisor needs original ID and photo.

Known as: business activities, you have to select a list from national economic industry classification and obtain approval of business registration, whatever your industry is, you must apply for the business scope when you submitting the application of certificate of registration. Also, different business activities mean different taxation rates, such as: trade, service, engineering, etc. Here, SMEsChina teams suggest you to learn the business scope from our guidance: A Collection Of Guiding Corporate Business Scope.

Known as: investment capitals, corporate shareholders act as investors and fulfill their capital contribution obligations. China government allows foreign shareholders to inject the registered capital with 30 years once local corporation be approved. Registered capital will be transferred from oversea shareholder’s account to Chinese corporate account after exchanging to RMB currency.

Setting up registered capital is a mandatory provision you have to comply with that, if you are deciding to establish a Chinese business. Traditional trade or service industry, the minimum registered capital is 20,000 USD or Euro. About more reference of capital of China companies, suggest you reading our guidance: Company Registered Capital.