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China Company

Introduction

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Foreign Investing Enterprise,which means Chinese and foreign investor or foreign investor according to Chinese Law open a company in domestic China. Chinese investor includes Chinese company or some other Chinese organisation; Foreign investor includes foreign company, foreign organisation or individual. 


Related Links:

>>1.Trading Co.

>>2.Service-Type Co.

>>3.Book-keeping

>>4.Virtual Office

>>5.Secretarial Services

Along with China enters WTO , China has an enthusiastic market , more and more foreign investors are interesting in China. Inter Area has service offices ,such as Beijing /  Shanghai / Shenzhen / Taiwan etc. Besides,we provide the latest local policies and information for our clients hence they can judge what would be the best options for them.

Stipulations of Registered Capital

According to the “Company Law”,in relation to cancel the minimum registered capital  requirement in each industries. Subject to the minimum registered capital stipulation, there are 2 types of Chinese registered companies , includes Company Limited and Share Company Limited. Company Limited’s minimum registered capital is RMB500,000; and the minimum Share Company Limited ’s registered capital is RMB5,000,000. Subject to the “Company Law” in relation to Company Limited’s shareholders have to pay 20% of registered capital at the first place ,whist it could not lower than registered capital’s requirement. 

Ways of Investing in China 

1. Wholly Foreign Owned Enterprise (WOFE) : Refers to 100% foreign investment to incorporate a company in China. Nowadays, it is a common way for foreigner entity or other associations to set up a company in China.

(1)All assets are owned by foreign investor.

(2)Normally, WOFE is about company limited , however, it could be other type of company if get permit from government.

2. Joint Venture : Chinese-Foreign Joint Venture refers to foreign entity or individual cooperate with Chinese entity to set up company.

(1)Joint Venture has to have Chinese and foreign parties. Foreign side can be individual or entity, but Chinese should be Entity only.

(2)Ratio of Joint Venture : Foreign side is more than 25% (NUL)

3. Chinese-Foreign Joint Venture refers to foreign entity or individual cooperate with Chinese Individual or entity to set up a company or doing business with an Agreement.

(1)Normally foreign side of Chinese-Foreign Joint Venture have more than 25% shares.

(2)Chinese-Foreign Joint Venture could be a company , or each parties signed by an Agreement . Both of them are needed to apply for permits.

(3)Foreign side cannot quit if the company hasn't loss; All facilities belong to China side in the future.

(4)Foreign side have operating right, besides, some limited projects ( Chinese runs only ) can operation in this way. 

Typical types of Chinese Company 

Trading Company : Trading companies are allowing to wholesale / retail / import & Export ; for some certain businesses like Liquor / Food / Cosmetic / Medicine Machine etc . are needed extra permits by government.

Service Company :  The main business is Service , For instance , Consulting / Application Developing / promoting / agency / F&B management etc .  Other Special business likesRestaurant / Travel Agency etc . are needed to apply for permits.

Representative Office (R.O.) :  R.O. which is not allow to have transactions in China.

Branch :  Refers to a branch of subsidiary . However the accounting job should handle by subsidiary. 

Requirements of Setting up Chinese Company 

focusLegalising Investor’s files

focusChinese Company Name 

focusChinese Company ’s Registered Address with Leasing Agreement

focusChinese Company’s Legal Representative and Supervisor Identity Certifications 

focusChinese Company’s Registered Capital

focusChinese Company’s Business scopes and operating time 

focusCredibility Letter of Bank of Investor 

Processes of Setting up Chinese Company

touch1Pre-Company’s Name Approval

touch1Certificate of Approval :  Application of foreign investment establishes in China 

touch1Business License : Applying for company registration

touch1Company Chops Remarked: Applying for making company’s chops 

touch1Company Code Certification: Applying for company code, which is key step of applying for further stuffs

touch1Tax Registration and Foreign Exchange Registration : Company is required to register Tax ; Remitting foreign currency is needed to applying exchange permits 

touch1Company Bank Account :  Basic Company Bank Account with Chinese Currency is required ; and other currency bank account if needed

touch1Custom Registration: Import and Export businesses are required to apply for permits