Setting up of Business in Mainland

Setting up a business in mainland China can be a challenging process, as there are many rules and regulations that must be followed. Don't worry - we're here to help simplify the process and make it easy for you.

Setting up of Business in Free Zone

Setting up a business in a Free Zone in China can be a complex process, as there are many rules and regulations that must be followed. It is recommended to seek the assistance of a local lawyer or professional service provider to ensure that everything is done correctly. Our team of experts is here to help simplify the process for you and provide professional support every step of the way.

THE PROCEDURE TO SET UP A COMPANY

We support your business at every stage

Prename Registration

Register with the appropriate government agencies: In China, companies are typically registered with the State Administration for Industry and Commerce (SAIC). You will need to complete the necessary paperwork and pay any applicable fees to register your company with the SAIC

Business License

Depending on the nature of your business, you may need to obtain various licenses and permits to operate legally in China. This can include things like a business license, a tax registration certificate, and a foreign exchange registration certificate.

Company Stamps

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RMB Bank account opening

It's important to have a good system in place for managing your company's finances in China. This can involve setting up a bank account, registering for taxes, and implementing an accounting system.

Launch your business

Once you have completed all of the necessary steps, you are ready to start operating your business in China. This can involve marketing your products or services, building relationships with customers and suppliers, and managing your operations on a day-to-day basis.

CHINA CORPORATE STRUCTURES

The advantage of 4 typical Foreign Invested Corporations

There are several options for business structures in China. Each option has its own advantages and disadvantages, and it's important to choose the one that best fits your business needs.

Wholly Foreign Owned Enterprise (WFOE)

  • The most popular corporation structure
  • Long-term permits (15 to 30 years)
  • Control of highbrow residency
  • Can construct assets in China
  • Simple submission process
  • No listed investment required
  • Hire staff directly

Joint Venture Company (JV)

  • Avoid Negative lists of WFOE
  • Division of dangers and payments
  • More government relations
  • Higher access to local assets and affordable labor
  • Reimbursement policies
  • Simple management of trials
  • Toughen industry’s value in the souk

Representative Office (RO)

  • Fast production of an office
  • Saves time as it is easier to meet up with the contacts
  • Can hire foreign and local staff
  • Have your own office in China
  • No registered capital required
  • Affordable and easy to use
  • Fewer tax payments 

Foreign Limited Partnership (LP)

  • Tax incentives have been very effective
  • Attract more potential investors
  • Maximum benefit for the creditors
  • Favorable investment structure
  • Flexible profit mechanism
  • Revealing new business opportunities
  • Separation between Management power and Investment right

WHAT DO YOU GET

Business License
Obtaining a Business License from Government
Business Scope
Provide the approved business activity in the Business License
Articles of association 
Company's articles of association (Basic Version in Chinese)
Stamps
Company stamp, Financial stamp, Invoice (Fapiao) seal and Legal Representative stamp
Bank Account 
RMB Company Bank Account / Company Capital Account / Foreign Exchange Account
TAX Bureau Disk 
Golden Tax Bureau Disk （OfficialTax USB disk to issue invoices and the tax）/ Fapiao printing machine / Blank fapiao notes
Visa & Work Permit 
Work visa is required for entrepreneurs who set up a company in China. After applying for a work visa, you must obtain a work permit and residence permit.
Social security account
Pension, Medical Insurance, Unemployment Insurance, Maternity Insurance, Work Injury Insurance and Housing Provident Fund for Chinese employees.

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10. FAQ

Have any problems?

Frequently Asked Questions on China Company Formation

Are there any legal complexities for setting up a business in CHINA?

The laws of the land in the China have been prepared considering ease of investment. The authority carries out the procedures and legal formalities in a quick manner. Hence, you do not have to wait too long for commencing your business operations in China.

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Is open trading possible in China?

Yes. In fact, China promotes open trading with 75% of products imported are tax exempted. It also gives tax-free operations for Free Zone companies. The trade policy exclusively developed for supporting businesses is conducive for the growth of small firms also.

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What are the advantages of setting up a business in China?

Yes. In fact, China promotes open trading with 75% of products imported are tax exempted. It also gives tax-free operations for Free Zone companies. The trade policy exclusively developed for supporting businesses is conducive for the growth of small firms also.

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How can I set up a business in China ?

To start a business in China you need to obtain a business license . There are three types of business licenses mainly. Mainland, Free Zone and Offshore. The procedure for each type of license differs.

Primarily business set up in China involves the following-

Initial approval from the competent authority, for initiation of the business.

Legal and official approval from the authority after thorough verification of the documents. This includes the investor’s identity, qualifications, resident status, financial stability and so on.

The authorities will also ascertain the feasibility of the business by examining the official and commercial space, AOA and MOA, the basic structure of the organisation etc.

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