Steps to creating your Chinese company

China company registration

In order to start a business in China, a company will need to register the company for approval by the Chinese government. Our company is one of the foreign investors in China that have successfully registered and are now justly running in the country. As long as you know these guidelines that follow, you can also register your business in China successfully. Although the registration process is quite long taking about five months or so, the efforts are all worth it. If you are patient enough, you can also run a company in China just like us.

China company registration

 Are you also planning to put up a company in China as a Wholly Foreign Owned Entity (WFOE)? Then we are glad to share these basic steps in registering a company in China. The following steps will help you put up your own company in China.

 First thing's first. It is important that you know and understand the content of China's Foreign Investment Industrial Guidance Catalogue. In this catalogue, industrial sectors are categorized as Encouraged, Restricted, or Prohibited. You have to find which category your business belongs to. Of the three categories, the easiest to get approved is the Encouraged category.

You need to prove that your business is legal and valid because Chinese governement stricltly does not allow any illegal foreign investors to penetrate their country. One proof of validity is adequate capital that is appropriate for the scope and size of your corporation. China will be able to easily trace your company if you have the following documents: 1) Articles of Incorporation, 2) National and Local company License, 3) Bank Letter with the account status of your business, and 4) Summary of annual report and company activities or any similar document. You will need to create a Chinese version of these documents so hiring a Chinese translator or consultant is highly essential.

 After completing all the mentioned documents, it will now be easy for your business to make a company name proposal from the Beijing Administration of Industry and Commerce (AIC). The company name will be in Chinese form. The application form requires that all shareholders sign in the application form. The rules in company name approval describes that any application that is made directly to the AIC will be processed for approval on the spot but if the application is made through email, fax, or snail mail, this might prolong the process up to 15 days.

 Finally, you can acquire your company's certificate of registration. You just have to submit the following necessary documents: 1) Articles of Association describing your corporation's management and activities, 2) Certificate of Approval of the Company Name, 3) Feasibility Study Report, 4) Contract of Lease, 5) Detailed list of Salaries and Benefits of the future personnel of your company.

After submitting all the necessary documents, wait for another 15 working days for the AIC to review your proposed WFOE. The agency will then decide to approve your registration or not. If approved, your business can now apply for a business seal, open Chinese bank accounts, and register your business for state and local tax by the state taxation bureau.

 If you eventually achieve the approval process, your company will then be regarded as a legal foreign company which they welcome wholeheartedly. The approval process will take you two to six months depending on the size and scope of your WFOE. Gaining these adequate knowledge about the process of registering a corporation in China is essential to your company. This could take you a lof of effort, time, and money but the costs will be all worth it.


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