Procedural Guide to Start a Business
Establishing a Company in China
1. Get permission first from the Foreign Economic and Trade department
2. Get license from the Business Administrative department
3. Other additional certificates, such as tax certificate
The Administrative Steps for Setting Up a Business are as Follows:
1. Register the name
2. Provide information about the Chief Representative
3. Provide feasibility study
4. Rent or buy registered office
5. Obtain business license
6. Setup bank accounts
7. Pay in registered capital
8. Complete registration at tax offices and customs
In practice this service will be provided by your accountant or lawyer. The costs will vary between $2,000 to $10,000 depending on the firm you use and the complexity of your business.
Process of Establishing a Wholly Foreign-Owned Company (WFOC)
Steps Involved:
1. Rent an office--get the rental contract and the permission of the owner for office usage
2. Name approved by business administrative department
3. Receive approved certificate from the foreign trade and economic department
4. License (temporary) from the business administrative department
5. Corporation chops
6. Corporation code
7. Tax certificates (national/local)
8. Foreign exchange certificate--permission to open bank account from the foreign exchange department
9. Foreign capital account
10. Capital verification auditing report from accountant agency
11. Chinese corporate bank account (exchange foreign currency into RMB)
Information for Business Registration:
- Investor’s identification, contact number
- Original passport, or else verification and notarization of passport;
- Company name (five options)
- Corporation Articles (who are the company’s executive director, interior supervisor, shareholder, general manager)
- Amount of capital
- Business scope
- Registration address (ownership certificate, rental contract and copy of ownership certificate)
- Executive director’s foreign address, 2 ID-size photos
- Financial credit certificate
- Copy of executive director, interior supervisor, shareholder, general manager’s passport
- Executive director, interior supervisor, shareholder, general manager’s address
List of Potential Fees Requested by the Government (Throughout the Registration Process):
1. Business License fee: Cost in RMB based on the amount of capital investment
2. Capital investment audit: 2000 - 2500RMB
3. Corporate chops (stamps): 600RMB
4. Corporation code processing fee: 108RMB
5. Tax certificates (national/local): 50RMB for each one
6. Open corporation bank account: 200RMB (dependent on bank policy)
7. Potential misc. fees (these fees should be minor)
The Chinese government is constantly upgrading the systems and processes for registering a company. Therefore, while we try to maintain accurate information, it should also be understood that such fees may change and should be used for referential purposes in context with the information provided.
How We Can Help
Have you wanted to develop a presence in China and tap into its booming economy and bright future? We can assist you. We operate both within the States and China. Between our knowledgable local team and network of professionals, we can assist you with all of your China business needs. From our China Business page we offer the following services: Setting Up a Business in China, China Sourcing Solutions, and China Market Research.
