Shenzhen foreign invested enterprise registration is one way to set up a business in Shenzhen. Foreign investors in mainland China who come from a common law legal jurisdiction often struggle to understand the concept of China’s company law. Even those who understand the concept do not truly appreciate the manner in which it operates in China.
Shenzhen is a good choice for companies that are in computer software, IT, microelectronics and components, video and audio products, electro-mechanical integration, and key projects of light industry and energy. Meanwhile, newer industries such as pharmaceuticals, medical equipment, biotechnology are also on the rise in Shenzhen. Below is a brief guide on registering a foreign invested enterprise in Shenzhen.
Introduction to Foreign Invested Enterprise (FIE)
A foreign invested enterprise (FIE) is any one of a number of legal structures under which a company can participate in a foreign economy. FIEs tend to have tight government regulation at several important junctures, which can limit how much a company can profit from foreign ventures, as well as the amount of control that a foreign parent has over the FIE.
Setting up an FIE is a common method of creating an operation in Asian countries, especially in China. In China, any one of a number of legal entities can be considered FIEs, including equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE) and foreign-invested companies limited by shares (FCLS).
Setting up a Company in Shenzhen
When setting up a company in Shenzhen, there are numerous things to consider and hence it is important to seek appropriate legal help. Tannet can provide you with everything necessary to set up your business. We offers first-class solutions to all of the following requirements.
1. Virtual Office
As a new business owner setting up your own physical office is a must in order to establish a professional appearance to potential clients, customers, investors and business partners. In China, prospective clients and business partners will often ask you where is your company located in China. Hence, a good location is an asset. At Tannet, we offer excellent solutions for virtual office address.
2. Bank Account Opening
Due to existing restrictions on international money transfers in China, your mainland-based clients will only be able to pay you within China. Therefore, a bank account in which local companies can transfer you Chinese RMBs is necessary. Tannet has maintained closed relationship with quite a number o f domestic banks, we can arrange bank account opening for you. If you need a Hong Kong bank account or offshore account, we are also glad to help.
3. Trademark Protection
China's trademark registration system is based on first to file principle. Hence, it is important to register your brand’s trademark and logo in China as early as possible. Having an international trademark is not helpful as foreign trademark are not enforced in China. You must file a separate application for your trademark in China.
4. Tax Invoice
Chinese companies put a lot of trust in the government and the Chinese legal system. Hence, they are very likely to inquire whether your company is registered in China. This is a way for them to establish the legitimacy of your business and to ensure that you can provide them with a tax invoice locally referred to as a Fapiao.
5. Market and Marketing
You should also consider localizing your marketing by using colors and slogans that appeal to Chinese consumers. Having a slogan in Chinese will also help Chinese customers get a better understanding of the strength and appeal of your brand. Above all, Tannet’s Hign-end Planning Department offers proven solutions to help you tailor your marketing plan to the Chinese market.
Tannet offers one-stop service for investors to set up business in Shenzhen and other parts of China. Besides company setup, we also provide various followup services, like bookkeeping and tax filing, visa application, trademark registration, payroll outsourcing, company deregistration, etc. Our Turnkey solution starts with first analyzing your business scope and operation and then figuring out the best legal and marketing path forward.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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