Foreign companies refer to enterprises established in China within the limits of the laws of the People’s Republic of China and are jointly invested by Chinese investors and foreign investors or only invested by foreign investors.
How to register foreign companies and conditions for registering foreign companies:
Although foreign capital has entered the Chinese market, the establishment of a foreign company must also be conducted in accordance with Chinese laws and go through a number of registration procedures.
It would not get any favoritism and is treated equally. The conditions for registering foreign companies will not receive special care due to different nationalities. Different from company registration abroad, there are many materials required for registration of foreign companies in Chinese mainland, and the registration conditions are also relatively stringent. There are many conditions for the registration of foreign companies.
Through optimization, it is known that the registration conditions mainly include the company’s shareholders, supervisors, directors, company name, business scope, registered capital, registered address, company’s articles of association, and legal representatives.
Many foreign enterprises have opened up the Chinese market, not only earning huge profits, but also growing the company. At this time, it is necessary to establish a branch company.
Materials needed for foreign companies to set up branches:
1. “Application for Registration of Branches of Foreign Enterprises”.
2. “Power of Attorney for Appointment of Delegates or Joint Proxy”.
3. Approval authority’s approval documents. This is applicable to cases where setting up branches needs approval from approval authorities according to laws and administrative regulations.
4. Articles of association of the company to which the branch is affiliated.
5. Office documents of the head of the branch issued by the company to which the branch is affiliated, and copies of his/her ID.
6. Certificate of legal use of residence (business premises).
7. Pre-approval documents. These refer to the approval document concerning the pre-approval or the copy of the license certificate or the license proof, applicable to branches that have projects in their business scope needing pre-approval before registration according to laws, administrative regulations, and State Council regulations.
8. Other relevant documents.
9. A copy of the business license (stamped with the company’s seal) of the company to which the branch is affiliated.
Note: This regulation applies to the establishment of branches of foreign-invested limited liability companies or a share limited companies in accordance with the Company Law, the Sino-Foreign Joint Venture Law, the Foreign Enterprise Law, and the Sino-foreign Cooperative Enterprises Law.
Not all foreign enterprises can survive in China, and some may be out of business due to poor operation, or being unable to adapt to the Chinese market. Then they have to cancel the company.
Cancellation of foreign enterprises:
1. Apply for dissolution approval to foreign investment examining and approving authorities ( 10 working days ).
2. Set up a liquidation group, file with industry and commerce authorities, and make announcements ( 5 working days ).
3. The liquidation group issues a liquidation report (3 months).
4. Submit the liquidation report to the foreign investment examining and approving authorities and revoke the approval certificate.
5. Cancel from tax bureau and customs department.
6. Cancel from the industrial and commercial authorities.
7. Conducting cancellation procedures including bank accounts, foreign exchange, finance, technical supervision, statistics, public security and other departments.
The entry of foreign enterprises into the Chinese market has played a certain role in leading the development of the economy.
Therefore, both foreign-owned enterprises and Chinese-foreign cooperative enterprises can achieve long-term development as long as they are properly managed.