Are you trying to set up a company in China? Trying to start a new venture in one of the world’s leading business countries can be difficult. There are tons of aspects to consider like different sets of laws, the trade know-how, permits, rules, and regulations to understand and fulfill.
China is a global economic hub experiencing exponential growth. This makes it the perfect launching pad for international businesses looking to expand and invest globally.
How to set up a company in China?
Appoint an agency to help establish your company
Despite the efforts of the Chinese government and the administration to support businesses, registering and setting up a company is not a simple task. From understanding the company laws to acquiring all legal documents and prerequisites- it is a demanding procedure that can seem overwhelming.
The best way to navigate the complexities of the procedure is through a corporate service agency to help you set up a company in China.
Agencies run by experts of the field can support you by lending their expertise, knowledge, local know-how, and advisory.
These corporate services may include- acting as an advisory on company setup, restructuring, establishing business entities, updating company records, hiring and recruitment services, and registration formalities.
Determine the Specifications of the company
In accordance with the laws and regulations of the Chinese business sector, a company name, the legal structure and type (Wholly Foreign-Owned Enterprise, Joint Ventures, Representative Offices), business location, and the preferred company scope must be outlined.
Registration and License
Once the details have been narrowed down, the required documents must be arranged and the completed company registration form must be submitted to the government offices.
This includes an Approval Certificate from the Ministry of Commerce (MOFCOM) and State Administration of Industry and Commerce (SAIC), a Business License, issuing company stamps from registered AIC, and registering with the Public Security Bureau (PSB).
Opening a bank account
Owning a Chinese bank account is crucial to run your operations. A bank account is required to deposit your registered capital, pay your employees, and for other corporate transactions.
After completely registering your company and receiving licenses, approval, company stamps, etc., you may open a corporate bank account for your business.
Tax bureau registration (VAT and Fapiao)
To set up a company in China you have to register as a VAT taxpayer with the tax bureau. Depending on the industry you operate in, you will either be a small-scale taxpayer or a general taxpayer (do you know DeFi?).
Fapiao, a tax receipt printed by a fapiao machine, is crucial if you want to conduct business with Chinese clients who prefer receiving a fapiao for their administration
Find out more about how to set up your company in China and get the best start possible with Fiducia.