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Establish an IT Company in China

Establish an IT Company in China

The ICT industry in China covers a wide range of products and services, including hardware, software, telecommunications and IT services. The Chinese ICT sector has grown rapidly during the last years due to the government support and planning. If you want to establish an IT company in China, you need to know that there is a growing number of opportunities for foreign companies, especially in the area of mobile gaming, IT outsourcing and 5G. Our lawyers in China can give you all the details regarding the legal aspects of starting a business in the IT sector.


How to establish an IT company in China



There are several steps required for starting a business in the ITC sector in China. These include the following:


•   Choose a Chinese law firm to counsel and help you during the company formation process and running the company;
•    Investigate if the business sector where you intend to operate your company is encouraged, restricted or forbidden to foreigners – the Chinese legislation for foreign investment stipulates which economic area is available or inaccessible for foreigners;
•   Prepare the necessary documentation to obtain governmental approval for legally operating a company in China. This includes: the name of the company, the list of controlling partners, the management structure, the legal address of the company, the Articles of Association (AoA), the number of employees, the registered capital;
•    Apply for approval with the local authorities in charge of the IT sector in China – you have to deal with the Ministry of Commerce and the State Administration of Industry and Commerce;
•    Obtain business licenses and permits – several documents are needed for the application. Note that the founding date of the IT company must correspond with the day you receive the business license;
•    Open a bank account and deposit the share capital of your IT company;
•   Register for tax purposes, with the Customs Office and with SAFE (State Administration of Foreign Exchange).

Our attorneys in China can assist you with the entire legal procedure of establishing an IT company in this country.


The ICT sector in China


Information and communication technology (ICT) in China consists of equipment and services related to broadcasting, computing and telecommunications. There are four key technology areas within the ICT sector in China: telecoms, hardware, software and services. The Chinese government has recently taken a few decisions to encourage and support the ITC sector. These include: preferable taxing policies for equipment companies, tax exemptions for imported key machines and materials for large projects and cooperation with ICT companies or institutions.

If you need more information about the incentives provided by the local authorities to investors in the ICT sector, please contact our law firm in China.