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China Company Registration
There are several different types of business entities that can be registered in China, including sole proprietorships, partnerships, and limited liability companies. The most common type of business entity for foreign investors is the wholly foreign-owned enterprise (WFOE). A WFOE is a limited liability company that is 100% owned by foreign investors. Another option for foreign businesses is to establish a representative office (RO). An RO is not a legal entity and cannot engage in profit-making activities. Instead, it serves as a base for conducting market research and promoting the parent company’s products or services in China.
Companies in China must have a minimum of 1 shareholder and a maximum of 50 shareholders. Both individuals & companies can be shareholders.
Companies in China must have a designated legal representative, a company supervisor and a financial manager. The legal representative and supervisor should reside in China, and the financial must be a Chinese citizen or entity.
There is no minimum registered capital in China although 100,000 CNY is the arbitrary and recommended amount. The funds do not have to be injected into the corporate bank account.
Companies in China must have a physical registered address that is able to receive mail correspondence.
How to Open a Company in China
PROs
China offers great opportunities for those seeking to open a company. As the world’s largest economy, the Chinese market is growing rapidly and offers significant opportunities for businesses. In addition to this, the Chinese government actively encourages foreign investment and offers a number of incentives to businesses that open a company in China.
Once you have determined the business scope in which you plan to operate, it is important to stick to it. This means that if the Chinese government catches you conducting business outside of your business scope, you may face penalties or be forced to close your company.
The new company name must be available, verified, not trademarked and approved. The company name must be in Chinese and cannot include “China” in the name. An English name can also be designated, but is optional. The Chinese name of the company is the legally binding name.
for INDIVIDUALS
1. Passport Copy
2. Residential Address Proof
for COMPANIES
1. Certificate of incorporation
2. Business profile
1. Company Constitution (AOA)
2. Legal Representative Form
3. Company Registration Form
4. Company Supervisor Form
Once the company is registered and the business license is issued, apply to obtain a tax registration number from the local tax bureau and organize an interview with a bank to open the corporate bank account.
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