China represents an appealing and competitive country on an international scale from an investment point of view, and a major force of the worldwide economy. China is known as a fast-growing economy and global influence, which connect to the powerful financial centers. Being a stable business partner in many fields of interest, China attracts several investors from abroad to place their operations and to generate profits in the most prolific and appreciated industries of this country. You can choose the type of structure that suits most the needs and future activities to open a company in China. The company formation process in China is less bureaucratic which can be entirely overseen by our China Company Formation agents.
Follow the steps to open a company in China
Wholly Foreign Owned Enterprises can be established by the investors from abroad who should bear in mind the following steps for registration:
- You have to choose a business name and verify its validity with the State Administration for Industry and Commerce of the People’s Republic of China.
- Appoint the board of managers and the legal representative for your WFOEin China.
- A mandatory request for investors should be created and agree on in a feasibility report in China.
- You must open a bank account and deposit the minimum share capital of RMB 30,000.
- You should apply for the necessary permits and licenses for your future activities in China.
- Now, you can register for tax purposes and social contributions in China.
Types of company set up in China
The State Administration for Industry and Commerce of the People’s Republic of China generate the registration certificate for new companies set-up in this country, which includes for the established with foreign capital. Setting up a new company in China and having the chosen domain will much depend on the business entity and structure for performing the operations. Foreigners can set up the following companies:
- WFOE (Wholly Foreign-Owned Enterprise), is the most popular business structure in China.
- Joint Venture Companies is designed for experienced business persons in China.
- Private Enterprisescan be turn into public companies under certain conditions.
- Sole Proprietorship Company has a simple business structure for small businesses in China.
- Partnership Companies can be suitable for small and medium-sized entrepreneurs.
Company Formation Cost in China
- It is important to have in mind the costs of starting a new company in China. You can consider the important ones which are mentioned below:
- The Registration fee is approximately RMB 10,000 which represents the governmental fees for opening a company in China.
- The virtual office costs are approximately USD 80 per month for a virtual office package in China.
- The Company formation fee is around USD 2,000 as part of our consultants for a personalized offer.
- The accounting costs start from USD 100 per month for tailored accounting services for your new firm in China.
Know The Procedure of China Company Registration
If you wish to register a company in China, the applicant needs to submit an application for the relevant company registration authority, according to the Chinese company law. If the application filed satisfies all the conditions, the ChinaCompany Registrationauthority shall register the proposed entity as a company limited by shares or a limited liability company. According to the laws, the establishment of a company shall be subject to the approval of the registration of the company.