- Foreign company registration in China is a strategic move for businesses looking to tap into a global economic hub and investors’ paradise. China offers an exceptional launching pad for companies aiming for international expansion. By registering a company in China, entrepreneurs gain access to an extensive marketplace and numerous growth opportunities. The country’s robust infrastructure, favorable business environment, and vast consumer base make it an ideal destination for foreign investment. If you register company in China it can significantly enhance your global footprint and drive long-term success.
Company structures for foreign company registration in China
When considering foreign company registration in China, there are several types of company structures available:
Wholly Foreign-Owned Enterprise (WFOE)
- A WFOE is a limited liability company entirely owned by foreign investors. It allows foreign businesses to operate locally in China, engaging with clients, customers, and partners directly. The directors’ and shareholders’ liability are limited to their investment.
Sino-Foreign Cooperative Joint Ventures (JV)
- Joint Venture (JV) refers to a partnership where both Chinese and foreign partners invest and share company stakes based on their contributions. Approximately 35% of China’s one million foreign enterprises operate as JVs. While JVs typically do not have mandatory registered capital requirements for foreign investors, they must contribute at least 25% of the total investment. This company structure often enjoys regional incentives; for instance, JVs in Shandong’s development zones can benefit from a 15% reduction in corporate income taxes, among other advantages facilitated by Chinese partners
Representative Office (RO)
- An RO enables foreign companies to establish a presence in China without engaging in direct business activities. It supports local operations through the parent company abroad, providing security for paying and hiring local staff.
Sales office
- Ideal for foreign companies seeking maximum control over their operations, a Sales Office allows management of legal, HR, and administrative functions independently within China.
Procedure for foreign company registration in China
Step 1: Choose a name
- Firstly, our experts at Tetra Consultants will proceed with reserving a Chinese business name for your company in China. We will secure approval from the Administration of Industry and Commerce (AIC).
- Additionally, if required, our experts can also facilitate international trademark registration for globally securing your brand name.
Step 2: Rent out an office space
- Additionally, to proceed with foreign company registration in China, our experts at Tetra Consultants will ensure you provide valid address proof for the company’s official headquarters. This address is crucial as it will be used by the authorities to communicate with the company regarding any queries about its operations.
Step 3: Choose company scope
- Further, we will continue to assist you in understanding China’s business landscape by reviewing the ‘Catalogue for the Guidance of Foreign Investment Industries’ to select the appropriate company scope. This step ensures your business aligns with sectors prioritized by the Chinese government for rapid economic growth.
Step 4: Apply for business license
- Tetra Consultants will proceed to submit all required documentation, facilitate the company incorporation process, and obtain the necessary business license in China. Only after obtaining the business license will Tetra Consultants proceed to apply for other necessary licenses or permits required for your specific business operations, such as F&B licenses, alcohol licenses, medicine licenses, etc.
- Next, we will submit the final incorporation form and documents to the AIC to secure the business license.
Step 5: Register for taxes
- After this, we will facilitate tax registration with the Tax Bureau to ensure full compliance with China’s tax regulations. Tetra Consultants’ team of Chartered Accountants will guide you through meeting various tax obligations.
Step 6: Open a bank account
- Once we have completed company registration and tax registration, we will then proceed with a corporate bank account opening. A Chinese business bank account is essential for conducting operations, enabling your company to manage expenses, receive payments, and facilitate tax filing. Tetra Consultants can facilitate the opening of a bank account within four weeks after incorporation, ensuring your business in China operates smoothly and efficiently.
Conclusion
- Navigating foreign company registration in China without the need for travel is made seamless with Tetra Consultants. We offer comprehensive business services to ensure smooth compliance with every step of the registration process. From initial business name reservation and entity formation to obtaining necessary licenses, including tax registration and PSB registration for company chops, we handle it all efficiently.
- Our expertise extends to facilitating corporate bank account opening within four weeks of incorporation, enabling your business to manage operations effectively in China. With regional insights and strategic partnerships, we maximize benefits like tax incentives and market access. Trust Tetra Consultants to streamline your entry into the Chinese market, allowing you to focus on your business’s growth and success.
- Contact us to know more about foreign company registration in China and our team will revert back in 24 hours.
