Company Registration in China- An Overview

Aspect Details
Timeline for Company Registration in China Register company in China in 4 to 5 Weeks
Fees for China Company Registration Online The fees for company registration in China start from USD 4500
Benefits of Company Registration in China for Non-residents Given below are the benefits of company registration in China for Non-residents-
  • Gateway to the Chinese Market
  • Attractive Incentives for Foreign Investors
  • Building a Stronger Supply Chain in China
  • Credibility with Chinese Consumers and Partners
  • Strategic Advantages in Local Networking
  • Regulatory Compliance and Reduced Risk
  • Long-Term Growth Opportunities
Types of Company Registration in China Types of company registration in China are as follows:
  • Wholly Foreign Owned Enterprise (WFOE)/ Limited Liability Company
  • Representative Office (RO)
  • Joint Venture Companies (JVC)
  • Private Enterprise (PE) - Local and Foreign Invested
  • State-Owned Enterprise
  • Partnership Enterprises (PEs)
Requirements for Company Formation in China The list of company formation in China:
  • Minimum three to thirteen Directors (limited liability company)
  • One shareholder
  • Legal representative in China (to fulfil the company registration procedures)
  • At least one Chinese shareholder (Joint Venture)
  • No minimum capital requirements (except for banking, finance, insurance etc).
  • A registered physical address in China
  • Unique company name
Documents Required for Company Registration in China The list of documents required for company registration in China is as follows:
  • Photocopy of passport (foreign citizens)
  • Business-approved name
  • Registered office address
  • Identity card of legal representative (director(s) and shareholder(s))
  • Identity card of the company supervisor
  • Shareholder and director information
  • Notary documents of the shareholders
  • Articles of Associations (AoA)
  • Memorandum of Association (MoA)
  • Registered capital of the company
  • Feasibility study along with budget
  • List of controlling partners
  • Managerial structure
Procedure for Company Incorporation in China The procedure for company incorporation in China is as follows:
  • Step-1: Talk to Consultants at Enterslice
  • Step-2: Rent Office Space
  • Step-3: Apply for a Company Name
  • Step-4: Choose Company Scope
  • Step-5: Approval Certificate
  • Step-6: Business License
  • Step-7: Register with the Public Security Bureau (PSB)
  • Step-8: Bank Account Opening
  • Step-9: Register with Tax Authorities
How can we help you with Company Formation in China? At Enterslice, we ensure a smooth and efficient Company Formation in China, offering:
  • Unlock Hassle-Free Business Registration in China
  • Simplify Your Path to Success in China
  • Trusted Experts for Efficient Company Registration
  • Your Gateway to Seamless Business Setup in China

Company Incorporation in China is Made Easy with Enterslice

Let our experts at Enterslice reduce your stress and ensure happy company incorporation in China.

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Understanding Company Registration in China

Do you want to expand your business with Company Registration in China? Well, China is a global leader in manufacturing and exports, particularly in electronics and other industries. Renowned for its seamless manufacturing facilities and cost-effective labour, it has become a hub for global companies like Apple and Microsoft, which rely on its resources for assembling their products. Additionally, sourcing raw materials and supplies in China is significantly cheaper than in other countries, making it an attractive destination for investors and entrepreneurs seeking cost-efficiency and high-quality production.

As the world’s second-largest economy with a projected GDP of $19.53 Trillion and a population of 1.408 billion, China offers unparalleled market potential. Its strategic location near emerging economies like Indonesia and India enhances its appeal for global business expansion. Coupled with advanced infrastructure, competitive resources, and strong opportunities in research and development, China provides the ideal environment for businesses to thrive and grow. Let Enterslice assist you with timely company registration in China. Things to keep in mind before you register business in China:

100% Foreign Ownership

No Minimum Paid Up Capital

100+ Double Taxation Treaties (DTA)

Minimum Three to Thirteen Directors

No Local Director Required

Exemptions for R&D Expenses

Business Structures for Company Registration in China

Here, given below is the list of different business structures for company registration in China-

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Wholly Foreign Owned Enterprise (WFOE)/ Limited Liability Company

A WFOE is a limited liability company fully owned by foreign investors. It enables foreign companies to conduct business activities in China directly with local clients, customers, and partners. The liability of directors and shareholders is restricted to their specific investment amounts, providing a safeguard for personal assets. It is highly recommended business structure for company registration in China.

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Representative Office (RO)

A Representative Office (RO) in China acts as an extension of the foreign parent company. However, it does not permit the foreign company to conduct direct business activities within China. Instead, the RO supports activities carried out by the parent company abroad, often in collaboration with a local partner in China. It is one of the well-known business structures for company incorporation in China.

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Joint Venture Companies (JVC)

A Joint Venture Company (JVC) is a business entity created through a partnership between a foreign investor and a Chinese shareholder. This structure offers foreign companies the advantage of leveraging the local partner's expertise and network within China. The three types of JVC are Equity Joint Ventures (EJV), Cooperative Joint Ventures (CJV), and Sino-foreign Joint Ventures.

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Private Enterprise (PE)- Local and Foreign Invested

A Private Enterprise (PE) is a common business structure in China, including both locally owned and foreign-invested entities. These businesses are privately owned and operated, offering greater flexibility compared to State-Owned Enterprises (SOEs). While local PEs are owned by Chinese citizens or entities, foreign-invested PEs are established and managed by foreign investors.

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State-Owned Enterprise

A State-Owned Enterprise (SOE) in China is a company owned and controlled by the government. These enterprises are established to operate in strategic sectors such as telecommunications, transportation, and finance, playing a vital role in driving the country's economic growth and development. It is one of the less popular structures for company registration in China.

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Partnership Enterprises (PEs)

Partnership enterprises are a popular choice for foreign investors because they offer a flexible business structure, enabling partners to share profits and risks. There are two types: in a General Partnership Enterprise, all partners are jointly and severally liable for the company’s debts and obligations, while in a Special General Partnership Enterprise (SGPE), partners have different levels of liability based on their roles and contributions.

Benefits of Company Formation in China

Have a look at the benefits of company formation in China-

Gateway to the Chinese Market

China, being one of the largest consumer markets in the world, offers significant opportunities for businesses. Registering a company in China opens the door to a vast market, ranging from e-commerce to manufacturing to infrastructure. This also enables businesses to reduce costs and improve efficiency by sourcing materials and products locally.

Attractive Incentives for Foreign Investors

The Chinese government has introduced various economic incentives to attract foreign businesses. These include tax reliefs such as corporate income tax reductions and VAT exemptions. Additionally, China offers subsidies and grants to support foreign businesses. It is a significant benefit for company registration in China.

Building a Stronger Supply Chain in China

China has one of the best supply chains globally, offering businesses proximity to top manufacturers and suppliers in Asia, along with an efficient infrastructure of advanced manufacturing clusters and a well-connected logistics network to streamline operations. Overall, registering your business in China can help you improve your supply chain efficiency.

Credibility with Chinese consumers and partners

Registering a company in China enhances credibility and trust among consumers and partners. It shows a commitment to complying with Chinese laws and regulations, which are highly valued by the local market. Additionally, it helps establish a local presence, crucial for building strong relationships with Chinese consumers and business partners.

Strategic Advantages in Local Networking

Company registration in China offers a strategic advantage in local networking. By establishing a local presence, businesses can build valuable connections and partnerships, providing long-term benefits for growth and success. It is one of the key benefits that drives entrepreneurs for company incorporation in China.

Regulatory Compliance and Reduced Risk

To register company in China can be challenging due to its complex regulatory environment, especially for foreign businesses. However, completing the registration process ensures full compliance with local laws and regulations, minimizing legal and financial risks while establishing a strong foundation for your business operations.

Long-Term growth opportunities

With a population of over 1.4 billion people, and home to a wide range of industries from manufacturing and technology to healthcare and finance, company formation in China is a smart move as it offers plenty of opportunities for businesses to expand and diversify their offerings. It is a key merit for company registration in China.

How to Register Company in China?

The step-by-step procedure to register company in China is as follows:

Talk to Consultants at Enterslice

To steer the complex process of company registration in China, entrepreneurs should seek assistance from professionals at Enterslice who can help prepare the necessary documents and paperwork, as well as provide a better understanding of company laws and their interpretations.

Rent Office Space

The applicant must provide valid address proof for the official headquarters when registering a company in China. Authorities will use this address to communicate with the company regarding any queries related to business operations.

Apply for a company Name

An applicant company must choose a unique business name. The selected name should not resemble any existing business names. Approval for the business name must be obtained from the Administration of Industry and Commerce (AIC) or the State Administration for Market Regulation (SAMR).

Choose Company Scope

The Chinese government has categorized business sectors, focusing on areas with high potential for economic growth. To learn about these categories, applicants should refer to the Catalogue for Guidance of Foreign Investment Industries, which is regularly updated.

Approval Certificate

The applicant company must apply for an operating license and approval certificate from the State Administration of Industry and Commerce (SAIC) and the Ministry of Commerce (MOFCOM). All required documents should be submitted to obtain approval.

Business License

Depending on the industry, the applicant company may need to obtain additional licenses. In China, businesses in sectors like manufacturing, construction, hospitality, and telecommunications typically require extra licenses. To simplify the process, the Chinese government offers a "five-in-one" filing system.

Register with Public Security Bureau (PSB)

In China, companies must register with the Public Security Bureau (PSB) to obtain a company chop, which functions similarly to a stamp or seal. The company chop holds the same value as a signature in Western countries. Entrepreneurs without a chop cannot validate contracts in China.

Bank Account Opening

After obtaining the certificate of company registration in China and other business licenses, the next step is to open a corporate bank account in China. This account is essential for business operations, allowing the company to pay expenses, receive payments, and file returns.

Register with Tax Authorities

Lastly, a company registered in China must register with the Tax Bureau and other relevant authorities to comply with tax obligations. This includes corporate income tax, transaction tax, turnover tax, customs duties, and Value Added Tax (VAT).

Requirements for Company Formation in China

The list of requirements for company formation in China is as follows:

  • Minimum three to thirteen Directors (limited liability company)
  • One shareholder
  • Legal representative in China (to fulfil the company registration procedures)
  • At least one Chinese shareholder (Joint Venture)
  • No minimum capital requirements (except for banking, finance, insurance etc).
  • A registered physical address in China
  • Unique company name

Documents Required for Company Registration in China

The list of documents required for company registration in China is as follows:

Photocopy of passport (foreign citizens)

Business-approved name

Registered office address

Identity card of Directors

Identity Card of Shareholders

Identity card of the company supervisor

Shareholder and director information

Notary documents of the shareholders

Articles of Association (AoA)

Memorandum of Association (MoA)

Registered capital of the company

Feasibility study along with budget

List of controlling partners

Managerial structure

Compliance Requirements for Company Registration in China

The list of key compliance requirements for company registration in China for non-residents are as follows:

  • Annual shareholders meeting
  • Business license from the Administration of Industry and Commerce (AIC)
  • Accounting and Tax Compliance
  • Safekeeping of Proper Accounts and Records
  • Appointment of an auditor
  • Income Tax Return
  • Employment Taxes
  • Corporate Taxes
  • Annual Audit report

Taxation Structure for Company Incorporation in China

The list of tax rates for company incorporation in China is as follows:

  • Corporate income tax is charged at 25% on company profits. Such a rate may be reduced for certain business sectors.
  • Transaction tax or turnover tax ranges between 3% to 5% on total sales
  • Custom duties (tax charged on goods imported or exported from China)
  • VAT (Value Added Tax) is charged in slabs of 3%, 6%, 9% and 13%

Businesses to Consider for China Company Registration Online

The list of profitable businesses for China company registration online is mentioned below-

Hot Businesses for Company Formation in China

  • Copper Ore Mining
  • Building Construction
  • Online shopping
  • Real Estate Development Management
  • Mail-order & Online Shopping

Other Businesses for Company Registration in China

  • Residential Real Estate
  • Bridge, Tunnel and Subway Construction
  • Software Development
  • Steel rolling in China
  • Oil and Petroleum Refining in China

Legal Framework for Company Registration in China

The key legal framework for company registration in China is as follows:

  • FIL (Foreign Investment Law of People’s Republic of China)
  • Anti-monopoly Law of China
  • Tax Law of People’s Republic of China
  • Company Law of the People's Republic of China
  • The National Development and Reform Commission (NDRC)
  • The State Administration for Market Regulation (SAMR)
  • The Ministry of Commerce (MOFCOM)
  • SAFE (State Administration of Foreign Exchange) or foreign currency transactions)
  • China Securities Regulatory Commission
  • China’s Labor Laws
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Why Trust Enterslice for Company Registration in China?

Enterslice has proved its mettle as one of the leading business consulting firms for company registration in China for non-residents. Given below are the reasons why business owners consider us for company registration in China-

  • 10+ Years of Expertise in China Company Registration for Non-residents
  • Deep Knowledge of Chinese Business Regulations and Compliance
  • 99% Success Rate in China Company Registration for Non-residents
  • Empowered 400+ Global Entrepreneurs in China Company Registration Online
  • Network of 150+ Local Experts for Company Registration in China
  • End-to-End Support with Chinese Business Name Registration
  • 24/7 Availability to Help you Register Company in China
  • Ensure Zero-hassle Paperwork for Company Registration in China

FAQs on China Company Registration Online

The list of taxes imposed on foreign investments after company registration in China is VAT, business tax, income tax, consumption tax, resource tax, stamp tax, and vehicle and vessel usage license plate tax.

Yes, China has signed more than 100 double taxation treaties aligning with signatory countries, benefiting entrepreneurs across such nations.

Yes, foreigners can establish branches after company incorporation in China, provided they comply with the Companies Act and Commercial Code. It's important to note that the parent company's documents are required during the branch registration process.

You can check if the company is registered in China by visiting the online platform of the National Enterprise Credit Information Publicity System, local Administration for Market Regulation (AMR).

Yes, after completing company registration in China, you must obtain a business license based on the type of business you plan to operate. This license, issued by the local Administration of Market Regulation (AMR), serves as official proof of your company’s registration and is essential for legal operations.

Yes, foreign individuals can own 100% of a business after company formation in China by setting up a business structure wholly foreign-owned enterprise (WFOE)which does not require a local partner.

The list of industries such as telecommunications, media, and energy have restrictions on foreign investment. However, it is important to check the “Negative List” issued by the government for specific regulations.

Yes, foreigners can open a bank account after company registration in China without a Chinese resident. One of the most popular bank accounts for foreigners in China is the non-resident account (NRA). However, this NRA is available in foreign currency accounts and Renminbi (RMB).

You can verify a business license in China can be found and verified on the National Enterprise Credit Information Publicity System.

The types of business entities for company registration in China are as follows:

  • Wholly Foreign Owned Enterprise (WFOE)/ Limited Liability Company
  • Representative Office (RO)
  • Joint Venture Companies (JVC)
  • Private Enterprise (PE) - Local and Foreign Invested
  • State-Owned Enterprise (SOE)
  • Partnership Enterprises (PEs)

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