Without any questions, China can be considered as the world’s leader in modern technology with a rapid growth registered each year. Focusing on the main sectors like infrastructure, energy, manufacturing, tourism, and agriculture, China is always one step ahead when talking about how technology can be successfully implemented. Numerous business developers have decided to enter the software market and create better ways to improve the activities and services of companies worldwide. Even if it is a competitive market, there is always room for more investments in China’s high tech sector, therefore, if you want to expand your areas and start doing business in China, we suggest you address our Chinese lawyers for company legal matters.
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What kind of software company can be established in China?
The electronics market in China is in the fast-forward mode, and the high domestic demand sets opportunities for entrepreneurs willing to place their businesses in the tech industry. There are numerous companies in the renewable energy sector, communications, and manufacturing that are in a continuous need of aligning with the requests in matters of software. As it is known, the computers do all the work in most companies having activities in the manufacturing field.
A software company will not only generate money, but it will also develop rapidly, as the technology grows fast so does the businesses. If you want to open a software company in China, it is best to establish from the beginning what kind of activities you want to develop. For example, one can develop online software products like all kinds of applications which can help both companies and individuals non-related to the business field or can focus on offering software services and support for existing products. Also, your software company can manage the activities in both areas, meaning that it can produce software for companies and can handle the implementation and the maintenance. Investors from abroad but also local entrepreneurs can set up software companies in China with complete help offered by our attorneys in China.
Legal aspects when starting a software business in China
A preferred type of business by foreigners in China due to several benefits included is the wholly-foreign owned enterprise (WFOE) which has an easy incorporation process and 100% foreign ownership. The Administration of Industry and Commerce is the institution that approves the name of the company, the business activities and the necessary documents before issuing the certificate of incorporation. Also, business persons can establish joint ventures with mixed capital and owners, local and from abroad. A good aspect related to the business environment in Shanghai and Beijing, two of the most important cities in China is that the government no longer imposes the minimum share capital for establishing a company.
For a better understanding of the legal aspects involved in a company registration in China, we invite you to contact our law firm in China.