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China Company Registration

Updated:2017-11-14 15:57:39    Source:www.tannet-group.comViews:336

China Company Registration/China Business Services
Hotline: 86-755-82143422, Email:tannet-solution@hotmail.com

China company registration (also known as China corporate formation, China company establishment, China business setup, etc) is a good choice for global investors to extend business and make profit. China is a huge market, and the vast Chinese market is expanding many important business people’s choice. Before making the right decision, the local industry and commerce, taxation, law, management and operation of a wide range of understanding and research is particularly important.

As a foreign individual or company looking to start your business or expand your activities in China, there are several legal structures to select from:

                          

(1) Wholly Foreign-owned Enterprise (WFOE)
Normally the WFOE is Limited Co. A certain rate between the equity capital and the investments is regulated and is according to the sector. Two reports are necessary for the formation of a Ltd. To found a Ltd. You need a project report with the documentation of the project, the aim, etc. as well as a feasibility study. In most of the times both reports can be put together into one document. Next to these reports a good relationship to the government is an advantage. If you follow just the exact rules rather than the Chinese way while founding the company, the formation can take a long time.

(2) Representative Office (RO)
The formation of a representative office is for many companies the first step to China. In most of the cases these companies already have a customer base in China and want to support them or get accustomed to the new environment. The representatives are founded out of marketing and promotion reasons in most of the times. They are not allowed to be involved in any business operations as well as selling products in China. For such activities they need a Chinese company or trade office. The initiation and searching of new business contacts, consultation and perhaps the creation of market studies are their main tasks.

(3) Joint Venture (JV)
In earlier year the Joint Venture was the most common business type for foreign enterprises in China. In some sectors it was and still is necessary for the formation of such a company as a car producer or the aircraft industry. A crucial point for the formation of the JV is to gain market shares, customers and knowledge about the Chinese market through the JV-partner.

(4) Foreign Investment Enterprise (FIE)
Setting up a Foreign Investment Enterprise (FIE) is a common method of creating an operation in Asian countries, especially in China. In China, any one of a number of legal entities can be considered FIEs including equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE) and foreign-invested companies limited by shares (FCLS). Any one of a number of legal structures under which a company can participate in the foreign economy.

(5) Foreign Invested Partnership Enterprise (FIPE)
FIPE stands for Foreign Invested Partnership Enterprise. In Mainland China, there are 4 modes of business presences for foreign investors: WFOE (65%), Representative Office (20%-), FIPE (10%+), Joint Venture (5%). FIPE becomes more and more popular among young entrepreneurs with their new startups in China as it requires no registered capital but the FIPE still could hire people, collect payments, issue invoices, apply for work & residence in China freely.

China Company Registration Requirements
Since 2016, no paid up capital is required for foreign investor to establish a Consulting, Trading or Information Technology business etc. Below is the required documentation for WFOE formation in China.

1. Certificate of Incorporations, Articles of Formation or Equivalent document certified by Chinese embassy or Chinese consulate overseas. For individual investor: Passport copies of Investors need be certified by Chinese embassy or consulate;
2. Bank Reference Letters from investor’s bank (declare a good standing);
3. Passport copy of: (i) Parent company's director (ii) China company's Legal Representative and (iii) China company's supervisor;
4. China Legal Representative provides: photos, brief resume;
5. Registered capital; Business Scope; 8 proposed Chinese names of China company;
6. Office address in China, leasing contracts, certificate of real estate ownership, and landlord identification;
7. Letter of Authorization.

China Company Registration Procedures
Foreign investors are not permitted to directly submit the application documents of incorporate a WFOE to the relevant authority in China. They must retain a PRC entity that is authorized or permitted by relevant authorities to act as a sponsor. The sponsor will submit all the documents to the examination and approval authorities on behalf of the foreign investor. Procedures for setting up a WFOE in China are as follows:

1. Name registration with State Administration of Industry and Commerce (SAIC);
Certificate of Approval by Ministry of Commerce or Foreign Economical Cooperation Bureau;
2. Apply for Business License with SAIC;
3. Chops made by Public Security Bureau (PSB);
4. Organization Code License by Technical Supervision Bureau (TSB);
5. Tax Certificate by Taxation Bureau;
6. Registration and Approval with State Administration of Foreign Exchange (SAFE);
7. Open foreign currency and RMB bank account;
8. Inject capital from investor’s overseas bank account;
9. Capital Verification Report by Certified Public Accountant (CPA);
10. Apply for permanent Business License with SAIC;
11. Financial certificate registration;
12. Statistics license registration;
13. Import/Export license (applicable for Trading & Manufacturing WFOE).

Tannet’s Services Include:
Foreign Investment Manufacturing Enterprise;
Foreign Investment Trading Enterprise;
Foreign Representative Office;
Foreign Investment Consulting Enterprise;
Registering Foreign-invested Enterprises in Pilot Free Trade Zones;
Sino-Foreign Equity Joint Venture;
Sino-Foreign Co-operative Joint Venture.

Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512 or 86-755-82143181 or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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