Setting Up a Company in China

If you want to establish a company in China, you have several options as a foreign investor, including wholly foreign-owned enterprises, limited companies, and sole proprietorships. Additionally, you can open a company with Chinese partners.

Company Address

The address of your company in China can have different implications and benefits, depending on the region. Incentives and support may vary in developing and developed areas.

Key Considerations

• Licensing for import and export
• Approval from Chinese customs authorities
• Invoice advantages
• Incentive regions
• Free trade zones

Consulting Services

We offer consulting services to guide you through the necessary steps and requirements.

Required Documents

You can apply for your company's registration in China through the Integrated Registration Service system, simplifying document exchange among various institutions.

Some of the critical documents and requirements include

• A Chinese name for your business approved by the Industry and Commerce Bureau
• A business operation permit
• Your company's bank account
• Your company seal

If you're interested in opening a company in China, it's worth noting that Shanghai, as an international hub, offers various opportunities to investors. In this city, home to the world's most significant import fair, foreign investors can establish sole proprietorships, limited companies, joint-stock companies, or companies with Chinese partners in free trade zones or the regions of their choice.

RECOMMENDED CAPITAL

For WFOEs and JVs, the commitment system determines the registered capital, and we recommend having more than 800,000 RMB of paid-up capital. ROs do not have specific documented capital requirements, but they can not engage in profit-making activities, and the foreign company allocates all office expenses.

EMPLOYEE LIMITATIONS

For WFOEs and JVs, you can enter into labour contracts with employees, and there are no limitations on the number of employees. For ROs, the number of representatives (including the chief representative) can be at most 4. Foreign enterprises' appointed chief representative, representative, and personnel are dispatched or assigned by the foreign affairs service department.

BANK ACCOUNT TYPES

For WFOEs and JVs, various account types can be opened, subject to the bank's specific requirements. WFOEs can access various financial institutions' financing and wealth management services. ROs can open a bank account and receive foreign currency, but these transactions must be related to daily operational expenses. Note that banks require a Letter of Credit(LOC) for import and export transactions, and you can not open one.

OTHER CONSIDERATIONS

Before establishing an RO in China, a foreign enterprise must have existed for over two years.

Businesses cannot convert an RO into a WFOE/JV, but you can re-register it as a new WFOE/JV after cancellation.