How to Register a corporation in China
China company registration
In order to start a company in China, a business will need to register the company for approval by the Chinese government. Our business is one of the foreign investors in China that have successfully registered and are now justly running in the country. As long as you know these guidelines that follow, you can also register your company in China successfully. We did the whole registration process for about five months and all our endeavors have eventually paid off. Now we're running and generating good income.
If you have a company and would like to extend it in China as a Wholly Foreign Owned Entity (WFOE), we are here to guide you. Read through and learn the basics of registering your own company in the People's Republic of China.
The first step in registering a corporation in China is to review China's newly updated Foreign Investment Industrial Guidance Catalogue. This catalogue was put up by the Chinese government to guide a foreign corporation in putting up company in China. Foreign companies or investors should be aware of the different sorts of industries which are classified into three categories and termed them as Encouraged, Restricted, and Prohibited. In order for your company to get easily approved, you have to fall under the "Encouraged" category.
The government of China will make it sure that your corporation is legal and valid so they will need something to trace you. In order to prove that you exist as a real corporation in your home country, you have to submit the documents that are usually required by the Chinese government with the proof that your capital is enough to run a business in their country. The requirements for this step include articles of Incorporation, national and local company license, bank letter showing the status of the company's account, and the description of your business activities as a foreign investor to China. All of these documents should be in Chinese. For easy documentation, we suggest to hire a Chinese translator or business consultant.
When the documents are ready, you can then proceed to the proposal of your company name to the Beijing Administration of Industry and Commerce or AIC. They will provide you with an application form which you will have to entirely fill out. The name must be in Chinese language. If you are not just a single investor, every shareholder should also sign into the application form. We suggest that you to directly go to the AIC for application of company name so that the approval will be done right then and there. You can also apply through mail, fax, email, etc. but the approval will take you to about 15 days.
The next step is to obtain a certificate of registration from the Beijing AIC. They will require you to submit the following documents: 1. Articles of Association, 2. Certificate of Company Name Approval, 3. Feasibility Study of your business in China, 4. Lease Contract, 5. A Comprehensive Summary of Personnel Salaries and Benefits.
Your proposed WFOE will then be reviewed for approval for another 15 working days. If you are confident with your documents, then there's a big chance of getting approved. The AIC of China will trace and check your documents and ultimately decides to approve or reject your company registration. If approved, your business can now apply for a company seal, open Chinese bank accounts, and register your business for state and local tax by the state taxation bureau.
After the approval of the application process, which takes about two to six months all in all, you can at last start to run your company legally. You should understand that the whole process requires a lot of patience and adequate knowledge on the guidelines for registration of a corporation in China.
China company registration