China offers important business opportunities and foreign entrepreneurs who want to expand to the Asian market choose to open a business in China, particularly in large cities like Beijing and Shanghai. The business start-up costs in China can vary according to the chosen type of company and the specific business sector in which the company will perform its commercial activities.
Our lawyers in China can walk you through each step of the company formation process and discuss with you the anticipated costs.
Costs for opening a company in China
The overall costs for the business start-up procedures have decreased, compared to previous years. China is opening up to foreign investors and the ease of doing business index for China, as evaluated by the World Bank, has also improved in 2014 compared to 2012.
The wholly foreign owned enterprise (WFOE) is the most popular type of company among foreign investors. Although some of these companies that operate in specific business areas, like trading, retailing, business consulting, information technology etc., do not need a mandatory minimum share capital, others need to make this initial deposit when incorporating the company. The registered capital for a WFOE ranges between 100,000 CNY and 500,000 CNY.
Other costs incurred during the company incorporation procedure will be for the company seal with a value of 200 to 500 CNY or for obtaining various certificates. Depending on the documents you need to provide for incorporation, you may also have costs related to notary procedures. Our lawyers in China can help you calculate these costs and handle the registration procedures.
Below, you can watch a presentation related to the business start-up costs in China:
Setting up a business in China
Apart from the costs for the actual company incorporation, companies in China will also have to prepare a budget for purchasing a property in China or renting an office space. As the business expands and the company will want to hire employees, it will also have to deal with social security contributions.
Our Chinese law firm can offer you additional information about taxation in China and the costs of the main taxes paid by an average Chinese company.