Businessmen or entrepreneurs who want to open a company in Chinamust submit a series of documents in order to register the Chinese company with the relevant authorities. The company registration procedure begins with the preparation of these documents, followed by the opening of a bank account for the Chinese company, as well as establishing a business address. The registration certificate is issued by the State Administration for Industry and Commerce of the People’s Republic of China.
Our Chinese law firm offers company registration services and it can help foreign businessmen to prepare and submit all the necessary documents. Our attorneys in China can also help with choosing the suitable business form for your company.
Initial steps for company registration in China
Foreign businessmen interested in the business environment available in China can choose to incorporate a company under the following legal entities prescribed by the Chinese legislation:
•wholly-foreign owned enterprise – is a type of company which has 100% foreign ownership; the business is not related to any Chinese investor;
•joint venture – the legal entity is available for local and foreign businessmen interested in establishing a company with mixed capital;
•partnership enterprise – a legal entity which can be set up by individuals or companies.
After choosing the desired business form, an entrepreneur in China must obtain an approval to use the chosen company name. The approval is issued by the Administration of Industry and Commerce and the application form must be signed by all the company’s shareholders. The business name must comply with the specifications set forward in the regulations issued by the above mentioned institution. Businessmen who need assistance with protecting a trademark in China can address to our Chinese lawyers, who can offer more details about the relevant procedures.
The minimum share capital for the Chinese company must be deposited in a new bank account, but it is important to know that the legislation in this sense stipulates that a minimum capital is required only in certain situations. According to the Company Law in China, the minimum share capital is no longer compulsory for most of the business entities; in various cases, on which our team of lawyers can assist you, the business partners are required to establish a capital set out in accordance with the operational scale of the company.
It should also be mentioned that investors can set up a representative office as well; this type of business establishment is not a legal entity recognized by the Chinese legislation, as the representative office is set up in order to represent the interest of a foreign company on the Chinese market;
This comprehensive video presents the most important steps during the company registration process in China:
The company registration certificate in China
The application form must be submitted at the Administration for Industry and Commerce, along with the following documents:
- proof that the company has an office based in China (purchase agreement or lease agreement);
- approval for the company's name;
- the company’s articles of association, signed by the shareholders;
- identification documents for the shareholders and appointed individuals and the company’s legal representative(s).
It is important to know that the Chinese government has made progress in terms of doing business on this market, as the new stipulations of the Company Act eliminated the requirements related to minimum share capital when incorporating a company, but the rule is applicable only in Beijing and Shanghai.
Companies established in China are required to register for social security, a process which falls under the supervision of the Social Welfare Insurance Center; according with the business operations of the company, the investors will have to obtain special permits or licenses.
Other documents referring to any transfer of property or assets, if applicable, may be needed. The approval for the company registration should be communicated within 15 working days. After it is registered, a Chinese company can go forward with other procedures, such as the registration for tax purposes.
Hello. I am from France, and I'd like to invest in a business in China. I need legal assistance for this process, as I am not familiar with the Chinese system as this will be my first long stay in China. Thank you.
Hello, you can send us your request via e-mail and one of our lawyers will answer you as soon as possible.
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