Set up an Energy Company in China
Set up an Energy Company in ChinaUpdated on Tuesday 27th June 2017
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The first producer of electric power in the world, China is one of the most opportune places to start an energy company. Moreover, in the past years, the country has invested as well a significant amount of money in the renewable energy sector. Capable of producing solar panels which are exported in Western Europe, the Chinese workforce can definitely sustain your projects for an energy business in this country. If you intend to set up a company, you can rely on the legal assistance provided by our attorneys in China who can help you successfully register your enterprise.
How to register an energy company in China
The formation of a company in China implies several steps through which our Chinese lawyers can easily guide you, by providing you information concerning Corporate Law in China and the specific requirements for company registration.
If you want to invest in the energy sector in China, you have to make a name reservation for your enterprise and decide on the legal structure you want for it. One of the most utilized business forms by foreign investors is the wholly foreign owned enterprise (WFOE) which implies, in terms of formation costs, from 100,000 to 500,000 CNY.The social capital requirement 30, 000 CNY for limited liability companies has been retracted after the adoption of the Amendments to China's Company Law.
The office which receives applications for company registration in China is the Administration of Industry and Commerce. In order to receive approval from the authorities, you will need to file, through the application, several documents such as the articles of association and the identification documents for the shareholders. One of our Chinese lawyers can give you more details on the company registration procedure and can elaborate for you the required documentation.
How can foreign investors enter the energy sector in China?
The Chinese government has repeatedly stated up till now its intention to accommodate more foreign investments and to make serious steps towards globalization. The exploitation of several energy resources, such as oil and gas, was completely reserved to state-owned enterprises (SOEs). Nowadays, the Chinese legislation allows foreign investors to set up an enterprise in the oil sector in China by obtaining an approval from the State Council.
Since 2012, by the decision of the National Development and Reform Commission (NDRC), foreign investments started to be more and more encouraged in China, especially in the strategic and newly emerging industries (SEIs), in areas such as the new energy sector.
Investors who need more information on the foreign investment regulations can contact our law firm in China, where they can find as well professional legal assistance with the company formation procedure in this country.