In recent years, the Chinese government has also relaxed the registration requirements for wholly foreign-owned enterprises, no longer requiring a registered capital of 1 million yuan, and has also reduced the income tax rate of enterprises. These measures have attracted more foreign-funded enterprises to set up business in Shanghai and Guangzhou, and also facilitated Hong Kong people to register companies in the Mainland. This article will introduce the details of registering a company in mainland China, such as application procedures, related opening procedures and special considerations.
The WFOE is the most popular type of company among foreign investors and the one with the most stringent registration requirements. The easiest way to set up an individual enterprise is basically to be a Chinese citizen, provide an identity certificate and fill out a form. No need to invest registered capital or even prepare the articles of association. It is the most flexible among many types of companies.
To set up a WFOE, you must first meet the following basic conditions:
- Have at least one investor who is not of Chinese nationality
- One director, one legal representative, one general manager and one supervisor each
- Registered business address (can be a virtual office)
- Pre-registered company name
- Preliminary business plan (company business scope)
- Registered capital of 100,000 to 500,000 RMB (optional)
If you want to open a company in Mainland China, you must first find out the type of company that suits your business plan. The business structures you can choose include: limited liability company, joint-stock company, joint venture, wholly foreign-owned enterprise, representative office, state-owned enterprise, private enterprise and individual businesses. Three of the more common types of companies are described below.
The detailed steps to start a business in Mainland China and set up a registered company are as follows:
Develop a business plan, decide on the type of company to be established, company name and business location. Reserve a company name with the State Administration for Industry and Commerce. Register and get an approval letter from the Ministry of Commerce. Prepare all required documents: pre-registered company name, legal address of the company, articles of association, amount of registered capital, feasibility study report. Register and apply for a business licence with the local administration for industry and commerce within 30 days. Engraved official seal, financial special seal, legal person signature seal. Register company information with the Public Security Bureau and the State Administration of Foreign Exchange. Open corporate bank accounts and foreign accounts and deposit funds. Hire an accountant and then register the company's basic operating and financial information with the Tax Office. Writing employee handbooks and developing company work codes. Register the company's trademark with the Trademark Office
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There are two types of business registration addresses that can be used as a reference. The first type: The enterprise leases by itself, and rents a suitable office space in the business or industrial area as the company's registered address. The enterprise needs to consider the location/traffic/rent and other factors in the early stage. The second type: virtual registered address, the general company registration agent will provide you with this service. Features: The fee is lower, which can speed up the company registration process.
When registering a mainland company, it is necessary to list the business activities of the company. At present, it mainly provides services, consulting, trade, import, export, technology, engineering, industry, commerce and other national economic industries to regulate the business activities of enterprises. Of course, enterprises can also choose a cross-industry business scope according to their own needs.
After all documents are submitted, the authorities will take about two months for approval of your mainland company.