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Main Steps to Open a Company in China

Updated on Wednesday 18th April 2018

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Main-steps-to-open-a-company-in-China.jpgChina and its thriving business sectors welcome foreigners who want to set up the operations and benefit from a wide range of advantages linked to the business climate and the flourishing industries. Technology, engineering, manufacturing are only a few of the interesting fields with the full potential of growth for both local and foreign investors. The main steps to open a company in China can be entirely explained by our team of company incorporation agents in China at any time.
 

How do I open a WFOE in China?

 
The Wholly Foreign-Owned Enterprise (WFOE) in China is the main business entity which can be adopted for further activities by a foreigner in this country. As the title says, the company is entirely owned by the businessman from overseas who has complete control of the shares involved. When deciding for a WFOE in China, it is best to observe the main requirements at the time of incorporation:
 
•    choose and verify the name of the business (the Trade Register can help in this sense;
•    offer complete information about the owners (name, nationality, residency);
•    provide details about the activities and the purposes of the WFOE in China;
•    appoint the representative of the company and then the board of managers;
•    set up a business feasibility report (the authorities will make the necessary approvals);
•    open a bank account and provide the minimum share capital;
•    register for tax purposes in China (social contributions are also included);
•    apply for business licenses and permits and wait for the authority's permission;
•    hire an accounting firm for your company in China.
 
As a reminder, our team of company formation representatives in China can act on behalf of your company and represent the business’s interests from a legal point of view and related requirements.
 

What documents are necessary for WFOE incorporation in China?

 
The main documents of a company in China are the Articles of Association which provide complete information about the shareholders, the activities, and the assets involved. Moreover, a Certificate of Status can be solicited to Canadian and US investors.  These can be submitted to the local Trade Register at the time of company incorporation.
 

Do I need approvals for company registration in China?

 
The Chinese Government approval is necessary for the Articles of Association, the feasibility report which in most cases is a one-year business plan. In addition, the lease contract for the office spaces in China is necessary to be submitted for further approvals.
 

Apply for licenses and permits in China

 
If a foreign businessman wants to set up a company in the manufacturing or retail sector, a business license must be provided in this matter. The Chinese authorities also ask for licenses and permits for companies operating in the food and beverage sector or in construction, but not limited to these.
 

Open a bank account in China

 
Foreigners must take into account an important requirement when opening a company in China, whether it is a WFOE or another structure (joint stock company, limited or general partnership, sole proprietorship), and that is to open a bank account in China. Normally, foreigners can direct the attention to local banks or can choose the foreign financial institutions in China. The documents of the registered company are necessary in this sense.
 

Do I need an accounting firm for a company in China?

 
Yes, all companies in China must consider the services of an accounting firm in China, which can offer the following, in complete agreement with the international accounting standards:
 
•    payroll;
•    bookkeeping;
•    tax advice;
•    tax minimization methods;
•    audits;
•    support for the annual financial statements.
 
As soon as you accomplished the main requirements for company registration in China, you can direct the attention to the available workforce on the Chinese market.
You are also invited to contact our team of company formation specialists in China if you want to open a company in China.
 
 
 
 
 

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