Conditions for foreigners who want to own a company in China
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:
- to register a company in China in the name of an individual.
- to register a company in China in the name of a company.
An individual start a company in China
Conditions for corporate legal person registration:
Have Chinese resume with foreigners
Original and copy of :
- a valid passport
- Taiwan compatriot card for foreigners
- home return certificate
- travel certificate
- Health certificate for foreigners. And it’s from Beijing Entry-Exit Inspection and Quarantine Bureau.
- Have copy of the employment registration form for foreigners. And seal at the employing unit.
- Prepare two two-inch photos
Registration in the name of the company
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:
- Production company: not less than RMB 300,000 RMB
- Wholesale commercial company: not less than 500,000 RMB
- Retail commercial company: not less than RMB 300,000 RMB
- Consulting service company: not less than RMB 100,000 RMB
- Legal person of other enterprises: not less than RMB 30,000 RMB
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.
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.