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What Should You Do When You Have Chosen Your Business Type

Updated:2021-10-25 18:59:22    Source:www.tannet-group.comViews:271

When you have chosen the business types, and what is the next step? and how to do it? there are some steps. maybe will help you and help you run your business better. 

Project Application Report
The submission of a project application report is the first stage in the regulatory process for a new project. Approval needs to be sought from, or a filing made with, one of various levels of NDRC, the State Council, provincial/local government, or ministry, depending on the size and sector of the project. 

Name Reservation
All newly established FIEs require their proposed names to be reserved with SAMR. The name reservation will typically contain details such as the location, a unique industry trade name and the form of business organisation. The reserved name must be set out in the articles of association. SAMR is in the process of developing a regime to simplify and shorten the process of company name reservation. The new system will involve a name filing and review system to be operated by SAMR in parallel with the company registration process.

Filing with SAMR
Following the replacement of the MOFCOM approval requirements with the New FI Regime all newly established FIEs will only be required to submit a foreign investment information report through the online system managed by SAMR, rather than obtaining the approval of MOFCOM or its relevant local counterpart.

The Business Licence and Articles
of Association As with any company established in mainland China, an FIE is required to obtain a business licence before commencing business operations, and such business licence will be issued by the registration authority upon the FIE’s registration. An FIE established with the appropriate business scope is required to keep its operation within the business scope, as enterprises in mainland China cannot engage in revenue-generating activities outside their business scope. When filing the application to establish an FIE under the New FI Regime, (as with any other newly-incorporated company in mainland China).The joint venture contract is no longer required to be submitted. Where there is more than one shareholder, it remains the case that some of the more detailed rights and obligations as between the shareholders will be set out in a joint venture contract or shareholders’ agreement. For an existing FIE established prior to 1 January 2020, the provisions of the original joint venture contract and articles of association of such FIE are required to be amended and adjusted so that they are consistent with the Company Law, and such revised articles of association need to be submitted to SAMR before 1 January 2025.

Formal Establishment of an FIE

The issue of a business licence by SAMR marks the formal establishment of an FIE. SAMR is the official registry for entities registered in mainland China and corporate information, such as shareholders’ details, share capital and the names of directors,must be filed with SAMR. After an FIE is registered with SAMR and obtains its business licence, it will have the status of a legal entity in mainland China and may contract on its own behalf.After obtaining its business licence, an FIE will typically deal with certain formalities and obtain certain licences necessary for its day-to-day operations, including registrations and licences relating to the enterprise code, foreign exchange, customs, statistics and tax matters. The various government authorities are in the process of consolidating the issue of five such licences, namely an entity’s business licence, enterprise code certificate, tax registration certificate, social insurance registration certificate and statistic registration certificate into a single unified business licence.

If you don't know how to do when you chosen your busines types and don't know what is next step, please contact us.

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