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Set up a Branch in China

Updated on Friday 18th May 2018

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Set up a Branch in China.jpgLarge companies worldwide can choose to set up their operations in China through branches. This kind of business form respects both the rules and regulations of the parent company and the legal conditions in China. The business activities remain the same, so does the name of the company and it can act as an extension of the existing firm, regardless of the home country. Even if the registration process of a branch in China is simple, it is best to ask for support and guidelines from our Chinese team of company formation representatives.
 

Conditions to open a branch in China

 
As it is recommended, foreign entrepreneurs interested in expanding their operations on the Asian market and particularly in China should, first of all, decide on the business type that suits most to their needs and purposes. In this case, establishing a branch in China may represent the proper business idea, keeping in mind the mandatory requirements for such entity and the ones imposed for doing business in China. It is good to know that branches in China are registered through WFOE (Wholly Foreign-Owned Enterprise) In this sense, the parent company which is going to register a branch in China must observe the following conditions with the help of the legal representative of the future business:
 
  • • submit the Articles of Association with complete information about the owners
  • • submit the minimum share capital of RMB 100,000 as established for WFOEs in China;
  • • open a business bank account in the local currency to draft the capital;
  • • register for tax purposes with the National Tax Bureau (taxes and social contributions);
  • • apply for the branch stamps (they can function as signatures).
 
 
Instead of dealing with the language barrier or with any other issues that might occur, you can get in touch with our company incorporation agents in China for help in this matter. We also remind foreigners that our advisors can act on behalf of their businesses in China as legal representatives, nonetheless of the chosen business entity. Registering a company in China is less bureaucratic and investors can start the operations in a fast manner.
 

Do I need an office for a branch in China?

 
Yes, branches in China which are registered as WFOEs need to have a business address in the first place. In other words, a traditional office for your company in China is necessary. We remind that foreign investors who want to control their businesses from the home country can ask for virtual office services or can set up representative offices in China.
 

How can I register for tax purposes in China?

 
Branches in China need to register for tax purposes before commencing any activities. The company’s documents must be submitted to the National Tax Bureau in the chosen city for business, in charge of tax collection. Also, branches in China need to register with the Quality and Technology Supervision Bureau for the registration code and with the State Administration of Foreign Exchange if the activities involve different currencies and foreign business relations.
 

What are the benefits of a branch in China?

 
Branches in China respect about the same conditions as for registering a WFOE (Wholly-Foreign Owned Enterprise), except the fact that the incorporation is much faster. Among the benefits of a branch in China, we remind that such entity has its own licenses and seals and can start the activities as soon as it has been registered with the local authorities in charge. Likewise, branches in China can easily sign deals and contracts with local companies and can participate in varied business activities. If you want to open a company in China, regardless of the chosen business form, you can rely on the support of our advisors.
 
If you would like to know more details about how to set up a branch in China, please do not hesitate to contact our team of company formation consultants in China
 
 

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