Special Permits and Licenses for Chinese Companies
Special Permits and Licenses for Chinese CompaniesUpdated on Tuesday 17th October 2017
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China is a country with immense potential for development and it has already become a preferred destination for foreign businesses which want to expand to the Asian market. Foreign entrepreneurs who want to open a company in China will have to observe the specific requirements for doing business in the country and often they will have to face certain administrative issues and challenges, amplified by the cultural and language barrier. Our Chinese lawyers can tell you all about the special permits and licenses for Chinese companies and how to obtain them; with our help, you will be able to expand your business on the Chinese market. The same team of advisors can offer legal support in other legal issues.
Regulated activities in China
Like in many other countries, certain business activities require special permits and licenses. Companies need to obtain permits, approvals, and reviews before they can commence their business activities. The administrative licensing process is common worldwide and China is no exception. Businesses engaged in selling products or creating new manufacturing units will have to obtain the so-called administrative licenses, while other businesses, especially those operating in special fields like pharmaceuticals, will have to follow more steps to obtain the necessary permits. Some of the business activities that need special permits and licenses in China include, but are not limited to, pharmaceutical companies, those selling special types of products, import and export companies, construction companies, licenses for China-based websites to operate in China and others.
We have prepared a video about how to obtain special permits and licenses in China and we invite you to watch:
Obtaining special permits and licenses in China
Depending on your type of business, you will be required to contact the relevant Chinese authority and submit the necessary documents for the permit and/or license. Our law firm in China can help you obtain the permits in time so that you can start your business activities as soon as possible. Other licensing challenges in China are those for joint ventures. For example, companies in the automotive industry in China must operate within a joint venture in order to be able to sell their products on the Chinese market. For this purpose, foreign companies must find a suitable Chinese partner company in order to avoid any misunderstandings while doing business in China.
What does a Chinese license contain?
From the beginning, we mention that companies from abroad with establishments in China will obtain the necessary licenses and permits in the Chinese writing, but with the suitable help from our attorneys in China, one can understand what this kind of certificate contains. A permit issued for a business in China must provide details about the company’s name, the registration number, the address, the legal representative, the capital, the date of registration, the activities of the business and the expiry date of the license. A legitimate company in China is subject to varied licenses and permits, and each business, whether a shop, a restaurant, a trading company or a hotel will receive a copy of the business license which will be exposed in the establishments mentioned above, in order a for proper credibility in front of customers.
Export licenses in China
The Ministry of Foreign Trade and Economic Cooperation issues the licenses and permits for companies with activities in the trading sector. Entrepreneurs who want to deliver goods and products outside the Chinese borders will need an export license. This kind of certificate is issued for manufacturers and trading companies whether with foreign capital or a local business. We remind that the export licenses are necessary for companies in China which want to place their goods on the markets from abroad. With clear and comprehensive terms in matters of export licensing, one can obtain this certificate as soon as he/she applied for it. There are also cases where small companies in China collaborate with larger enterprises for exporting goods, instead of applying for such certificate. For a better understanding of the conditions that come with the licenses and permits for businesses in China, we invite you to solicit legal support from our team of Chinese lawyers.
Our advisors can help facilitate the licensing process and support you with other legal issues in China. Please do not hesitate to contact our Chinese attorneys for more information.