However, it is crucial to have bare minimum capital. It is considered a cheap and fast way to form a legal entity in China. Explained: How to register a company in China. Yes withholding tax is charged on dividends, interest and royalties. January 28, 2021 Posted by China Briefing Written by Dorcas Wong Reading Time: 3 minutes. China Free Zone Company. The resources offered in China are highly competitive such as global infrastructure and research and development opportunities. Although a company or WFOE may have registered a trademark in their original country, that doesn’t mean it is protected in China. We are providing the Company Registration service in China for International clients. Procedures for foreign company to set up permanent representative office in China. Online Search on Company’s Particulars. However for companies coming under the Chinese Government Business Scheme, the rate of corporate tax is 15%. Talk to us onthis website, and we will help you to map your way to success, starting with company registration in China. This would be carried out through the Ministry of Commerce website ( http://english.mofcom.gov.cn/ ). Apart from this, there are several sectors which have restrictions related to foreign investment. The registration of a company in China is more and more demanded – Prifinance provides the whole range of support services for businessmen. The name approval process can be also carried out through the State Administration for Market Regulation (SAMR). Strategic consultants advise entities on making important decisions... Top 100 Most Innovative Companies in Asia - Red Herring. The Company Law stipulates certain requirements before triggering the closure of a company. Considering analysts have assigned the stock a price target range of $7-$7 as the low and high respectively, we find the trailing 12-month average consensus price target to be $7. You will not be able to sign contracts on behalf of your company. Firmly limit direct selling companies, direct sellers and their direct sales activities, and combat pyramid schemes. The result is a business license that has a unique registration number/ business license numbers. China is the largest hub in Asia followed by Japan and India. Chinese: 合资. Company Registration in China. A PCG must be registered with SAFE in the place where the guarantor is domiciled within 15 working days of the PCG being signed. Hence investors and entrepreneurs go for the process of company registration in China. Once you have the company’s Chinese name and have determined which province they are located in, it is time to lookup their registration details. In the next step the applicant would have to obtain relevant business licenses. All companies must update their books of accounts as per the Chinese Accounting Standards. We help you get the entire process of filing and registration completed. Professional firms have been in the Chinese market for years, and know the mistakes that you need to avoid. Till now, global companies such as Apple and Microsoft consider China’s resources for assembling their products. Incorporating a company in China, the world's largest and fastest growing economy, is a boon to your business and its growth. This article has been adapted from the December 2019 China Briefing Magazine issue, titled “How to Close a Business in China“. Manufacturing companies in China have access to electricity and water for carrying out different operations. Your first obstacle may be actually opening the AIC’s China company registration check website because sometimes access … 2019-09-25. Apart from this, China contributes as the largest export house in the world. Hence based on the requirements of the applicant an appropriate form of business must be selected for carrying out the process of company registration in China. 5 Frequently Asked Questions about Company Registration in China. Choose the preferred company scope. WHAT we do. 2018-07-31. This provides more opportunities for Chinese companies to have some added value related to their investments. A Private Limited Company is an organizational vehicle to carry on business in the corporate structure. There are compliances which have to be carried out when the first step is complete. Comprehensive Support. The following compliances have to be carried out for a company which is incorporated in China: The following documents are required for company registration in China: First and foremost the applicant seeking registration has to choose an appropriate representative to make the process seamless. Starting a company in China can be a complex process taking up to 4 months to complete because: Depending on province, the minimum paid-up share capital required ranges from US$15,000 to US$140,000; Companies with foreign shareholding must go through a rigorous pre-approval process involving at least 4 state agencies; After this is carried out, the applicant would have to preserve the name of the company. 3. Such Statements must be filed monthly. China's tax law also provides that the income tax payment of company's subordinate branches may take two forms: one is the independent reporting … A representative office (RO) in China is considered a separate legal enterprise that represents its parent company. After this is carried out the applicant would have to choose the place for having the registered office of the business. Legislation of the country related to foreign businessmen is strict enough, and there is a high risk to face insurmountable challenges without due knowledge and skills. The pros of opening a company in Hong Kong. However the tax levied in Hong Kong is different from the tax levied in China. Though there are different benefits of setting up a business in China still company registration in China is not straightforward. In this, the complete shareholds the foreign entities and individuals. With eight years development, we have already established a high efficient biz consulting team and standard service system.Our team is consist of qualified Business Consultants, Company Secretaries, Accountants, CPAs and Lawyers. Step 2. As the world’s most populated country, the labour is cheap and hence companies want to expand their businesses to China. Usually foreign investors would consider forming this company if they have to set up an export oriented unit (EoU). If you would like to set up your business in China, willing to have a lawyer or counselor to deal with all the legal work to process your documents then purchase our service. The business environment and legal structure in China are significantly different from the typical business climate encountered in other countries. Usually for this form of entity RMB 1000000 or USD 150,000 would be suitable. Place of Registration: Hangzhou, China Registration Number: 91330100074343946N. American companies can invest in China without having any form of tax implications in America. For private companies usually the period of holding the annual general meeting would be 9 months after the end of the accounting year. Every company in China is required by law to be officially registered. Reserved Name- Apart from this, the name of the company must be reserved. Over the years 1421 Consulting Group has supported many clients with both the registration of a Hong Kong company, and the set-up of a WFOE in mainland China afterwards. In order to set up a company in China, or doing business with a company in China, it is important to first have a grasp about how the system of Company Registration in China works. A board of supervisors must also be appointed to carry out the affairs related to the company. Registration of a company in China can be a great decision but the first question which comes to our mind is how to register a company in China.Doing startup in China is a leading way to enter an enlarged market, which is propelled by sheer manufacturing, stable central government, and world-wide reach. Check more beneficial policies in the zone. An applicant applying for the process of company registration in China has to fulfil the following eligibility criteria: There are different types of companies in China. This is the first step which has to be carried out by the applicant. After opening its market to international trade, its economy has progressively changed from an agro-based to a tech-driven one. Talk to us, and we will help you to map your way to success, starting with, Company Registration in China: Understanding the Different Company Formations in China, Five Essentials for Your Next Company Retreat, How You Can Make Business Growth And Success Happen, How Artificial Intelligence is Transforming Business’ Supply Chains. The following are the types of business structures for company registration in China: This is a Chinese limited liability company which is owned by foreign investors. This tax is at a rate of 15%. JV. This is due to the rapid and ever changing business environment which companies have to adopt. Closing remark. Complete all the official China trademark application forms?and documents. The liability of the shareholders and directors is limited only a particular amount. All the documents have to be prepared and an approval certificate is required. Tmall Store Opening. This category presents Registration, Trademark Registration, from China Company Registration suppliers to global buyers. Upon obtaining a certificate of approval for the establishment of enterprises with foreign investment, the Chinese and foreign investors shall register at and obtain the business license from the State Administration for Industries and Commerce (SAIC) or its local subsidiaries within 30 days. Usually branch offices are not allowed for companies which are reregistered outside China. China is one of the global economic hubs that investors are looking to for growth and success. Choose an Agency to Help You with the Registration. How To Avoid Some Of The Most Common SEO Mistakes. Therefore, with a Hong Kong company as shareholder, the profit distribution and money repatriation to the parent company will be much easier. 2018-05-30. As Hong Kong is still a part of China, this company can be formed. Established in November 2008, the Office of Global Policy and Strategy's (OGPS) China Office serves as the lead for the FDA’s on-site presence in China. Intellectual Property Protection Strategy. Based on our experiences, most activities in China can be accomplished without a local entity by using outsourcing companies. Obtaining a business license and certificate of company registration for foreign investors is very fast and straightforward in mainland China. Is it Possible to Enjoy Lower Tax Rates for Your Chinese Company? The rate of corporate tax is 25%. The articles posted are copyrighted under a Creative Commons unported license 4.0. WFOEs are registered and operated in China as limited liability companies, implying that your liability as a shareholder only extends to the shareholding you have in the company. After all the above steps are carried out, the company would have to open a corporate bank account. In China, WFOEs are the most popular with foreigners looking forward to. If you are doing business with Hong Kong companies and would like to know more information about them, the Hong Kong Companies Registry offers online search services on companies registered in Hong Kong. Hence an entrepreneur would want to go for the process of company registration in China. Now online Business Registration made easy. This must be carried out Monthly. Virtual office costs : approximately USD 80/month for a virtual office package in China . Company registration in China . • Minimum Paid up capital- The applicant for company registration in China does not need to have a minimum paid up capital. Apart from having a foreign investor, there would be a Chinese shareholder having certain percentage of equity interest in the company. No there are no minimum capital requirements for companies incorporated in China. Joint ventures can be broken into two: where the profits and risk-sharing are proportionate to the equity that one has in the partnership. Starting March 1, 2021, the business name registration process in China will be digitized and based on a system of independent declaration. Proudly powered by WordPress 4. Annual Report must be submitted to the SAMR. Ltd (Limited): ≈ plc or Ltd. (UK). Because the process of registering a company in China is lengthy and involves dealing with different government departments, you should consider working with an expert agency. The government provides some form of leniency when it comes to foreign investment opportunities in China. Hence lot of foreign investment is attracted in China. Hence companies prefer investing in China. 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