Set Up a Company in China
If you want to set up a company in China, you are making the right choice. To begin with the company registration, you need to understand how to name a Chinese Company? What is the registration process for Foreign Invested Enterprises in China? How to apply for the License and Certificate in different activities? etc.
Generally, Foreign Invested Enterprise in China is referred to WFOE (Wholly Foreign Owned Enterprise), or JV (Joint Venture) company, or RO (Representative Office), including Consulting company, Trading company, Technology company, Food, and Beverage company, as well Manufactory or Factory company, etc.
GWBMA provides one-stop business service for Foreign Invested Enterprises (FIE), including the Company Registration Process, Bank Account, Accounting & Tax, HR outsourcing, VISA & working permit, and legal services. Moreover, with the help of technology and experts such as lawyers, Chartered accountants, the company secretary makes Company registration error-free and seamless.
Choose GWBMA, choose its expertise with high efficiency, and start your business in China Today.
CHINA COMPANY REGISTRATION
First-rate and All-round Registration Service
- 100% Online Company Registration process
Just provide us the required documents and let us do the rest.
- No registered Capital Required
There is no paid-up capital required in China.
- No registered Address Needed
We can supply the cheapest price and Permanent legal registered address in the Development Zone in China.
- New Business License 3 in 1
Combines the business license, the organization code certificate, and the tax certificate into one License.
- Set-up a WFOE in 30 Days
The registration process takes only about 30 working days to complete.
- Comprehensive Management Service
A comprehensive range of additional business services including Acccounting & Tax, HR outsourcing, and legal services.
The procedure to set up a company
Set-up a Foreign Invested company in 30 Working Days
Company name Registration5 Working Days
The company name pre-approval application form needs five options of company name in Chinese. Meanwhile, we need the Passport /Business Certificate's photocopies of the Legal representative and the shareholders that should be notarized by the Chinese Embassy.
Application for Business License 3 in 110 Working Days
After taking name approval, we draft an article of association for your company. We need an Incorporation application report, Certificate of incorporation of overseas investors certified by the Chinese Embassy, Standards forms, etc.
Company Stamps3 Working Days
After the Public security bureau record, we start to engrave the company's stamps, including the Company stamp, the Financial stamp, the Fapiao stamp, and the Legal representative's stamp.
Basic RMB Bank account opening5 Working Days
Enterprises with foreign capital shall open an account with the Bank of China. We need to arrange the meeting with the Chinese bank and sign the bank contract with the legal representative.
Open Tax account3 Working Days
Normally, within 30 days from the date the business license is obtained, the enterprise needs to apply for the Tax Account in Tax Bureau. We should collate, prepare the documents, and completed relevant forms to Tax Bureau to apply for E-tax Filing.
Foreign Invested Enterprise Types
There are 4 typical legal entities for Business Registration
Wholly Foreign Owned Enterprise (WFOE)
Joint Venture Comapany
Foreign Partnership Enterprise
Basic Documents Required
Documents required to set up a company in China
What do you get
What do you get after Company Registration
Extra service package after Company Registration
Applying for Licenses & Certificates
Assisting in applying for Business License or Certificate
Frequently Asked Questions
Learn more about Company Registration in China
How much does it cost to set up a foreign-owned company in China?
The Company registration cost depends on the company type, the business scale, and the business industries. Therefore, if you want to set up a company in China, just contact us directly. We’ll analyze your company situation and then provide the most cost-saving proposal.
What is the share proportion for the Foreign-Invested Enterprise?
- For the WFOE/WOEF, the foreign investor should have a 100% shareholder ratio to set up a wholly foreign owned company in China.
- For Joint venture company, at least one of the shareholders should be a foreign investor that the proportion shall be no less than 25%.
I haven’t rented an office yet, can I set up a company first?
When setting up a company in China, it is important that you need to find an office and the lease contract with the landload who provide the copy of the real estate license, and other related materials. It is necessary for company registration. Certainly, if you need help, we can help you to find the best office or provide the registration address in the Development Zone.
How long to finish the WFOE registration and start a business?
- Waiting for the 3 in 1 business license and providing several documents. It depends, if you are not in China, you need a courier express to China. (15-20 working days)
- Opening the bank account. (7 working days)
- Opening the Tax account in the Tax Bureau. (7 working days)
What is a Joint Venture company in China?
The Joint venture (JV) is a business entity set up by one or more citizens, corporations, or economic organizations cooperating with Chinese citizens, corporations, or economic organizations. That means the shareholders are from two or more nationalities. According to the Company Laws in China, the JV company is characterized by shared ownership, shared returns and risk, and shared governance. The point is, the contribution of capitals shall be converted to a certain proportion, and the proportion of the foreign investors shall be no less than 25%.
Will the company be able to start operations after obtaining a business license?
After obtaining a business license, you need to apply for public security records, official seals, corporate seals, and financial seals. Moreover, the corporation in China needs to apply for tax registration and social security account.
What processes do I need to deregistration a company?
The entire process of deregistration write-off the company is generally about 5 to 7 months.
- State Administration for Market Regulation (SAMR) pre-filing.
- Newspaper billboard publication.
- The municipal taxation cancellation application.
- Go to the local tax bureau for cancellation.
- State Administration for Market Regulation (SAMR) cancellation fill submission.
- Social security cancellation.
- Bank write-off cancellation.
What is the limit on the number of board members of a limited liability company?
If a limited liability company has a board of directors, its members are five to thirteen people. Besides, the limited liability company with a small number of shareholders or a relatively small company may have an executive director without a board of directors.
What is the Supervisor of the Foreign Invested Enterprise (WFOE/JV)?
According to the Company law, a WFOE or JV company in China is required to appoint at least one natural person as the supervisor, and this person can be of any nationality and reside in any place. The supervisor cannot be appointed as the legal representative, board members or other senior manager. However, any shareholder or employee can be nominated to serve as a supervisor. In fact, the Supervisor of a WFOE/JV has no direct authority or responsibility, and usually serves a “symbolic function” within the company.
Can a limited liability company not have a board of supervisors?
A limited liability company with a small number of shareholders or a small scale may have one to two supervisors and no supervisory board. However, the limited liability company with a relatively large scale of operations has a supervisory committee with not less than three members, and the proportion of staff representatives shall not be less than one third. Supervisors shouldn’t be the legal representative, board members or other senior manager.
Who can be the legal Representative of Foreign companies?
Setting up a company in China requires a legal representative. The legal representative can be one Chinese or a foreigner. Besides that, the legal representative may be one of the shareholders, or it may be one of the persons from the appointment system (the position is the chairman, executive director, or manager). But the legal representative should not be the supervisor.
How to name your company in China?
In China, the official name of a company consists of four parts: administrative region, designation name, industry characteristics, and organizational form. Firstly, the administrative region name includes different regions or cities where you register the company. Secondly, the designation name includes two or more Chinese characters. Thirdly, the industrial characteristic includes the name of the products, business, or industries such as trade, culture, technology, advertising, etc. Fourthly, the organizational form includes the limited company, liability limited company, RO, etc.
What Does registered Capital Mean?
According to Company Law, registered capital is the fund all the shareholders contribute or promise to contribute to the company as they apply with local State Administration for Market Regulation (SAMR) for incorporation, and the amount of the registered capital will be listed in the company’s Business License. Generally, it is the Subscription Capital system, there is no time limit for fund injection now. It means that the shareholders can transfer the register Capital into Company’s Capital Account in 20-30 years.
How to fill in the company’s business scope?
The Chinese company law stipulates that an enterprise may not operate business beyond the business scope of the business license, otherwise it will face a fine. Therefore, you must first determine the main operations to ensure that the company can legally operate these industries. If you are unsure whether to do the added business scope, you can go to the State Administration for Market Regulation (SAMR) to ask the questions. That’s why the Chinese business scope is very important for your company.
What is the WFOE/WOFE in China?
Wholly Foreign Owned Enterprise (WFOE or WOFE) refers to foreign enterprises, corporations, economic organizations, or individuals that are 100% owned and capitalized in China by foreign investors. Thus, the WFOE doesn’t include the Joint venture enterprises, Representative Offices, or the branches of foreign companies, etc. Most notably, unlike the other investment vehicles in China, the unique feature of a WFOE is that the involvement of a mainland Chinese investor is not required. That’s why the WFOE is the most popular corporation for the Foreign Invested Enterprises (FIE).
What is the Representative Office in China?
Representative Office (RO) allows a foreign company to hire staff in China through their own legal entity. That means the RO is for the sole purpose of company representation. Starting up a RO in China is the fastest way to get an income at a lesser cost. However, not only the RO cannot part-take in any activities that cause them to gain returns, but also it cannot sign up any legal documents or charge a sales service fee from any customers.
What is the difference between the branch company and the subsidiary company?
- A branch company is a branch of the company. Although the Branch company has business qualifications, it does not have legal personality, and cannot independently assume civil liabilities. The civil liability is bared by the company that establishes the branch company. In addition, the name of the branch company has to set up a branch name in front, followed by the name of the company plus a branch location.
- For the subsidiary company, a certain amount of shares of a subsidiary are held and controlled by the parent company, but they have independent legal personality. In another word, civil liability can be assumed independently and externally according to law, but the parent company is not liable for the debts of the subsidiary company. The point is that the Subsidiaries can name themselves without adding the parent company’s name.
What should I do if the Registrated Capital cannot be paid after the capital period expires?
- If the company does not intend to continue to operate, it can directly deregistration or transfer.
- It is possible to extend the capital contribution period by amending the statutes; this method should be the most cost-saving, but it must be approved by all shareholders.
- Find someone to help advance the capital, and the registered capital will actually be paid.
- Shareholders who fail to timely contribute capital can be paid by other shareholders or transfer shares.
- Go to the State Administration for Market Regulation (SAMR) pre-filing to handle the change of capital reduction.
What is a branch office? Is a branch company qualified as a corporate legal person?
A branch company refers to a company that set up a business entity in a different registered area. It should be noted that the branch company does not have a legal personality, and cannot independently assume civil liabilities. Therefore, the parent company is responsible for civil liabilities.
Why I should register a Representative Office (RO) in China?
In the process of applying for the establishment of the Representative Office, the examination and approval authority of the Chinese government is relatively strict. Mainly from the establishment of the subject qualifications, location, chief representative, or representative of the qualifications and credit status and other aspects of the review and restrictions.
Although Representative Office (RO) can not conduct any direct profit-making commercial activities, compared to companies with a certain scale, foreign companies have a lot of role in establishing offices. For example, firstly, foreign agents in China may cooperate with bonded warehouses or import-export companies for operations. Secondly, for precision equipment manufacturers in the mainland for after-sales service. Thirdly, the Foreign trade importers and exporters who intend to enter the Mainland China market will cooperate with Mainland China’s foreign trade import and export companies to complete the import and export actions. Basically setting up an office will have the function of a similar trading company. Lastly, intellectual property enterprises may authorize the use of their property rights on behalf of their parent company in China and have the ability to supervise the infringement of pirated copyrights.