It’s wised to own a company in China as China’s economy and trade have emerged in recent years.
This has attracted a large number of foreigners. They come to China for trade. And many foreign friends settle in China. Or they start a partnership with the Chinese.
First of all, let’s take a look at to set up a company in China. What are the conditions foreigners need?
First, foreigners can register companies in China.
The legal representative may not only be a Chinese, but also a foreigner.
However, the conditions are different between these two situations:
Conditions for corporate legal person registration:
Have Chinese resume with foreigners
Original and copy of :
Foreign companies apply for company registration in China.
This company needs to meet the conditions included in the following materials.
Provide 2 originals and a copy of the registration certificate.
These include company registration certificates, tax certificates, and company regulation.
Provide audit reports of last year.
The accounting firm needs to audit this report.
And it is the translated Chinese version, with the official seal of the translation company.
There is a bank credit certificate issued by a foreign bank.
It indicates that the company is in good operating condition.
And its deposit amount meets the registered capital requirements to invest a company.
2 original lease contracts for company office.
And the lessee must be the legal representative.
Moreover, the lease period needs more than one year with the Housing Authority. There is also proof of relevant property rights.
photos of the legal representative, original ID card or original passport.
When handling bank accounts, you need to provide original documents for verification.
The registered capital shall meet the prescribed amount. And it is suitable for the business scope. The specific capital requirements are as follows:
Here is the branch type.
Usually, we divide foreign-funded companies into two types:
Between them, the shareholders of a wholly foreign-owned company could be foreign enterprises or foreign individuals.
But, the Chinese shareholders in a joint venture company can only be Chinese companies.
We all know that the company’s business scope must be clear.
However, everyone should note that China is now subject to the approval system for the registration of foreign-invested companies.
Some industries are restricted for foreign-invested companies.
Find the details of specific business scope on China WFOE formation & its process and registration.
To register foreign-funded companies in China. It’s must be commercial houses.
And at the time of registration, it is necessary to provide the lease agreement and related certificates.
Chinese and foreign companies invested and operate joint ventures together.
According to the investment ratio, both the Chinese and foreign parties are responsible for the risks, profits and losses of the enterprise.
Chinese and foreign parties establish a joint venture together.
The company’s project needs approval from the government’s approval authority.
It is a limited liability company.
Chinese and foreign joint management.
Production and operation activities included in the country’s special regulations.
It is a Chinese legal person in China.
Both Chinese and foreign cooperative parties fulfill their respective rights and obligations, and these rights and obligations are formulated through the contract of the cooperative enterprise.
They are cooperation agreements and contracts formulated after consultation between the Chinese and foreign parties.
The Chinese and foreign parties formulate the rights and obligations together with consultation.
both parties of the cooperation sign the contract.
And the approval authority approves it.
Meanwhile, it is protected by national laws.
Both parties should perform their obligations according to the contract.
These rights and obligations include:
Cooperative enterprises can
We generally divide the cooperative enterprises into two categories:
It is the opposite of a corporation operated by a legal person.
It has no independent property ownership, only has management and use rights.
Entire capital of wholly foreign-owned enterprises is from foreign investors.
Generally, WFOE is limited liability companies or one-person limited companies.
However, it does not include branches of foreign economic organizations in China.
It can be a global strategy for its foreign parent company.
Commercially have stronger operating capabilities, and can use RMB to settle surpluses and issue invoices to customers. That helps protect its own intellectual property rights and patented technologies.
No special requirements for import and export licenses of its own products.
Can enjoy all personnel management rights.
A foreign-funded partnership enterprise is a partnership in China. And it’s between foreign individuals and companies.
Another one is a partnership between foreign enterprises or individuals and
Chinese individuals or enterprises.
Partners have equal rights to the executive partners
The efficiency of foreign-invested partnerships is relatively high.
Foreign-funded partnerships avoid double taxation. Meanwhile, this effectively reduces the operating costs of the enterprise. Therefore, investors can get more profits.
The establishment of a foreign-invested enterprise generally goes through the following steps:
The application materials and the model text of the application form
Foreigners can start a company in China.
Within the scope of business permitted by law, not only foreign individuals can open a company in China, but also foreign companies, within the business scope.
There are four types of company in China you can choose. They are joint venture, corporation, WFOE, and foreign investment partnership.
Follow the steps in this article, prepare the materials, and show your ambitions in China.
Compared with the registration of domestic-funded companies in China, registered foreign-funded companies are very different in terms of process and materials.
If you feel cumbersome, it is recommended to find a professional agent business service company to register.
If the article helps you with your investment, feel free to share it with your friends, thank you.
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