Setting up a Consultancy Business
A consultancy business or firm ( known as a company ) is a legal corporate entity of one or more consultants ( specialists or experts ) that provides professional advice to other corporations and individuals for a consultancy fee. Through setting up Chinese consultancy businesses to target local existed organizations and oversea enterprises ( registered in other countries ), also can provide relevant consulting services to Chinese individuals and non residents with their industry-specific specialists and matter experts.
As the simplest structure of business and an encouraged industry, a consultative company can obtain approval of business registration easily and quickly. If you have already decided starting to operate business consultancies in mainland China, you have to satisfy 2 basic conditions ( other information can be collected by online communications ).
Set up a key corporate structure, must include
1). One shareholder at least ( owner, investor ), can be an individual or existed corporation around the world.
2). Executive director ( known as legal representative ), can be a Chinese citizen or foreigner ( non resident ).
3). Supervisor, can be a Chinese citizen or foreigner ( non resident ).
Executive director and supervisor are appointed by shareholder(s), both positions can not be the same person.
Wherever are you from, you have to provide required documents and related legal files to certify their ( herein before ) authenticity and legitimacy. Then can obtain an approval from local market and supervision department ( know as industrial and commercial administration bureau ). Once you have these decisions and details you can prepare documents required to register a company.
Procedure of setting up a Chinese business
SMEsChina has listed 3 parts for your better understanding. If you have already confirmed and collected relevant documents and requirements, you can start the process of company setting up anytime. Through SMEsChina’s assistance, you do not need to visit to China in person.
Process 1. Industrial and Commercial Registration
1). Corporate name pre approval
2). Sign legal files and official register forms
3). Business license approval
4). Obtain company seals
5). Obtain certificate of registration
Process 2. Corporate Account
1). Submit documents to bank
2). Obtain an account of corporation
3). Apply for internet banking ( keys )
Process 3. Start up Businesses
1). Taxpayer registration
2). Publish VAT invoices
3). Other operations depend on your decision
What commercial activities can be approved
Chinese consulting services related to your actual situations and corporate operations, including consultant consulting, business information, enterprise management consulting services, which may be different depending on professional fields, for instance technical consultants, marketing consultants, MBA advisers, training advisers.
About the written rules of selecting business activities, you have to select main categories in terms of 2019 China foreign investment industrial guidance catalogue. Just like MBA advisory and marketing consultants mentioned by herein-before, you should write corporate management and consulting, and marketing plannings.
Here, SMEsChina listed some popular and available activities for your reference.
Standard description: commercial information advisers, corporate management and consulting, marketing plannings, brands consulting, corporate image plannings.
Other selection reference: conference services, exhibition services, translation services, talent consulting, graphic design, etiquette services, etc.
Cross-industry selections: internet technology consulting, advertising design, production, publishing, agent, information technology consulting, etc.
If your did not find your business activities from this guidance, you can refer to this link: selecting business scope to get more accepted business scope and commercial activities.
How to get started step by step
If you have everything of China consultative businesses you need to set up, whole procedure completed simply within 20 working days through SMEsChina’s assistance step by step. In the future, you can run and operate a small consulting company in mainland China with different consultancy services depending on your corporate decisions.
OK, 7 steps to start up a business:
Step 1. Select a company type
Step 2. Choose a company name
Step 3. Decide corporate structure
Step 4. Selecting business activities
Step 5. Confirm registered capital
Step 6. Prepare required documents
Recommended guidance: How to Obtain a Business Incorporation Certificate
Extended Learning and studies
Naming rules, like SMEsChina Consulting Ltd, or Shanghai SMEsChina Consultants Limited, SMEsChina Consultancy ( Shanghai ) Co.,Ltd, SMEs ( China ) MANAGEMENT CONSULTING LTD, etc. A available corporate name must include brand name ( logo ), selection of industry, registered region, and the end with LLC, LLP, Limited, ltd, Co.,Ltd, and so on.
Registered address, you have to find an office as registered office then can be approved to obtain a certificate of registration, do not worry about that, you may contact SMEsChina placing an order to us and get a virtual commercial address. Meanwhile, SMEsChina offers relevant secretary and accounting services.
Standard corporate structure, your consultancy business can be as, WFOE ( wholly foreign owned enterprise ), FICE ( foreign invested commercial enterprise ), JV ( joint venture business ), LLP ( limited liability partnership ) or other structure of company if you want registering business in mainland China.
Investment Capital, you have to decide a registered capital to take responsibility for corporate limited liabilities. The minimum registered capital of consultancy business is 20,000 USD or Euro. Corporate may transfer capital from shareholder’s account to Chinese company’s account within 30 years.
Source of revenue, a consultancy fee ( or consulting service fee ) can be from oversea customers ( non local clients ) and domestic clients. Customers can be enterprises, companies, organizations, and individuals ( personal accounts ).
VAT qualification, business consultants company can apply for 2 types of qualification for its taxpayer ID, 1st is small scale taxpayer, 2nd is general taxpayer. Which should be registered depending on the invoicing types from your customers.
Operation strategies of business consultants
1). Bank account, this is too simple to complete the process of opening a corporate account in mainland China, SMEsChina has great relationships with local banks, do not need to interview ( face to face ) personally.
2). Hire a staff, SMEsChina HR sector assisting your business entity to register social insurance and house funding accounts, and payroll management services, and our visa department offering your foreign staff to obtain a working visa and residential permit from immigration office.
3). Market opportunities and status of China consulting industry, millions of small and medium enterprises are keep growing from different business ares through MA ( mergers and acquisitions ) and cooperation with global resources. In order to promote the international development strategies of Chinese consulting industry, improvement urgently for low brand concentration, scale disparity, short of core competitiveness and ripeness, quality of employees varies, late development of industry, and other industrial disadvantages, China is expanding openness to more consultancy industries and encouraging industrial development.
Other optional industrial guidance and reference
If you are hesitating that if this industrial guidance is right for your purpose, or you are considering other business plannings, you may use this useful link getting more reference. If you wish, you may place an order to SMEsChina directly. China foreign investment industrial guidance catalogue
Get help deciding how to set up a business in China
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