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Types of Company Incorporation in China

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Company Incorporation in China is one of the largest markets in the world by the size of its population and also a great place for setting up the business by foreigners. The Produces Company Incorporation in China is very complex and time-consuming process because of inconsistent regulations, restrictions on foreign entities in certain specified industries. Therefore, it is compulsory for any applicant, before making an investment in China, to consider the options available. The question of importance is that is it necessary to establish one’ own concern or it can be done through an Umbrella company

In China, the business can be set up in the form of following four entities:

  1. Wholly Foreign Owned Enterprise: It is a type of entity established in the form of limited liability companies under the regulatory framework of Chinese Company Law. In this form of organization, 100% shareholding is owned by Foreign Individuals or entities.
  2. Foreign Invested Commercial Enterprise–These kinds of the establishment are mainly for the purpose of wholesaling,  Company Incorporation in China. The regulations for registering a business entity under this form is quite simpler in comparison to others.
  3. Representative offices in China – The Representative office are the one that represents the parent company in China. In establishing this kind of entity, there is no need to comply with any registered capital requirement. It is basically engaged in non- profit-making activities like market research, publicity, sales, and service activity.
  4. Joint Venture Company registration in China– It is a form of entity which is created through a partnership between foreign and Chinese investors in which they agree to share profit, losses, and management with their mutual concern. Company Incorporation in China i.e. Equity Joint Ventures and Cooperative Joint Ventures.

The process of Company Registration in China:

The foremost requirement, Company Incorporation in China is to file an application with the relevant Company registration authority under the framework of Chinese law. If the company registration authority is satisfied that the application is as per the required norms, then they register it in either as a form of Limited Liability Company or company limited by shares.

If any prior approval is required as per laws or administrative regulations, then it must be obtained before making an application for registration.

In case, if the general public applies to company registration authorities to inquire on company registration matters, the company registration authorities are obliged to provide inquiry services.

Once the Company registration authorities are satisfied in respect of application then, they shall issue business licenses to the concerned company. The date of issuance of the business license for a company shall be the date of establishment of the company.

Any investor willing to establish his/her own business in the Company Incorporation in China, then, Interslice can make it easier for them by providing end to end service.  For detailed information visit our website www.enterslice.com or email your queries at info@enterslice.com

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

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