Home > Local Company Registration > China Trading Company Registration

China Trading Company Registration

Updated:2018-5-29 16:56:46    Source:www.tannet-group.comViews:1232

China trading company registration is one of the popular choice for foreign investors to do  business in China. With foreign trading companies registered in China, foreign investors will enjoy a legitimate status to import and export goods, sign business contract under the protection of Chinese law, have the legal right to employ staffs and buy social insurances especially for Chinese employees who want to buy a property later in China.

In China, a trading company requires an import - export license that enables it to import and export goods. One of the main reason to open an import - export company is to reclaim your VAT back.

Business Scope
Business scope of the company in China is specially approved by commerce bureau of the district of the city or the city where the Company locates. The business scope is a particular on the Business License and also shall be stipulated in the bylaw of the company.

The company can not do business beyond its business scope, or it will be fined by the Administration of Industry and Commerce.

Registered Capital
The registered capital of the company is a certain amount of cash or substances evaluated to certain amount of money the shareholder of the company promises to invest into the company. The competent authority may require a higher amount of registered capital according to different situations. For example, if the company applies for trading automobile, the registered capital will be required higher.

Establishing a Trading Import Export Company in China
After seeing all the opportunities spring up like mushrooms, setting up a foreign import export trading company in China would be the only legitimate channel for a foreign investor to start his business in China legally.

The most common and acceptable business mode for trading business is trading WFOE or WOFE. WFOE known as Wholly Foreign Owned Enterprise is a limited liability company with 100% shares owned by foreign investor(s). A trading WFOE should be equipped with an import and export license to enable it to import and export commodities. One of the main reasons for establishing import and export companies is to return VAT, which is the most common way for foreign investors to invest in mainland China.

The business scope of a trading WFOE could cover:
(1) Wholesale commodities;
(2) Retail products;
(3) Commission agency;
(4) Export to outside of China;
(5) Import to China;
(6) Sell on China online malls.

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

Previous:China Foreign Invested Partnership Enterprise Registration (FIPE)     Next:China Wholly Foreign Owned Enterprise Registration