Incorporating a company in China is also referred to as China company registration, China business setup, China corporate formation. While China is open to foreign investments, there are certain restrictions and rules applicable to foreign companies. Procedures are often complex and the time it takes to incorporate varies and long. But don’t worry, Tannet is here to take care of all the process. We will go right to the key areas that matters to you and answer any questions and address any concerns you might have.
Types Company in China
Here are six common forms of company registration in China, three of which are associated with foreign companies.
1. Wholly Foreign-Owned Enterprise (WFOE);
2. Joint Venture (JV);
3. Representative Office (RO);
4. State Owned Enterprise (SOE);
5. Private Enterprise;
6. Small Private Company.
Process for setting up a business in China
The following information details the process for opening a WOFE in China.
1. Selected company name and office address
Company name is one of the essential elements of a company in China. In China, name approval being the first step in establishing a company in China.
Under China's current laws and regulations, it is not allowed to apply for business registration by using a virtual office as its registered address. So when setting up a company in China, one must submit a document showing its registered address.
2. Determine your business scope
It’s important to check your business type against China’s list of restricted industries to ensure you choose the correct structure. You may make sure to have a good balance between being too broad and too limited.
3. Get your documents in order and apply for application
Tannet will help prepare all the statutory and necessary documents for your startup. We can take away those trivia and let you focus on more important things.
4. Apply for approval
In China, your business must be approved through two separate entities: the Ministry of Commerce, and the State Administration of Industry and Commerce.
5. Register and open a bank account
After you’ve received your approval, you must register with the Chinese Administration for Industry and Commerce (AIC) and apply for your business license.
Annual requirements for WFOE
Tax Filing Obligations for WFOE: annual filing deadline is April 30. Tax filing is best left to a professional accounting firm.
Year-end Closing Requirements and Annual Audit Report (AAR): Limited companies should submit an annual audit report to the relevant authorities as balance, income, and cashflow statements. Late AAR is subject to penalty. The auditor’s report must be issued by April 30.
Annual License Renewal for WFOE: Annual inspection is required between March 30 and June 30, on which the Administration of Industry and Commerce bases Business License renewal. The company must provide such documents as the current Business License, Financial Reports, and an Audit Report.
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 86-755-82143422, 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.
Previous：China Company Overview: Supervisor/Board of Supervisors
Next：China Company Registration Overview